When buying insurance, you will also be asked about the rebuild cost of your building. This will consider materials and professional fees to reinstate your building. The rebuild cost of your building can be influenced by many things, including the size, construction materials, and age of the building.
The rebuild cost is very different to the market value as the market value is generally higher as it includes the land the property resides on. However, in some rare cases, the rebuild cost of a building can actually exceed the market value, for example, due to it being a listed building. When calculating the rebuild cost of a building, you must consider the removal of debris, professional fees, materials and labour. If you are unsure, then seek the advice of a professional builder or architect to get a clear understanding of the cost of rebuilding your premises. There are rebuild calculators available on some sites online, including The Association of British Insurers rebuild calculator. These types of calculators can provide you with an approximate value, but may not consider all of the specifics.