Reinstatement Cost

[BTC Builder]

My build is finished, warranty provider are ready to publish their certificate but the reinstatement cost is only £400,000.

 

Before we go any further, I built the whole thing myself for way less than that with a labour cost of sub £10k, excluding plumbing. 

 

My worry is that when trying to fund the build in the first place, I was encountering problems with "cost per sqm" which is a load hite with a capital S when you can do everything yourself but I dont want to get into that. 

 

As the house will be worth £1 - 1.2 million, could this reinstatement cost be deemed inadequate, going back to "cost per sqm" again? The house is 6 bed, 6 bathroom, 4000 sqft.

 

This is purely if I sell or take out a mortgage or remortgage, I won't be making any claims.

 

Thanks 

[SteamyTea]

6 minutes ago, BTC Builder said:

"cost per sqm"

 

6 minutes ago, BTC Builder said:

4000 sqft

Make your mind up what units to use.

 

400,000 [£] / 372 [m²] = £1,075/m² which is pretty cheap.

[ToughButterCup]

1 hour ago, BTC Builder said:

...could this reinstatement cost be deemed inadequate...

 

The calculation of units is irrelevant : a calculator will sort that issue out.

 

The word 'deemed' is the key thing. More important is the person (or organisation) that does the deeming : unless you control that entity. 

If there's any doubt about the process and the range of possible answers - then  the cautious answer is yes it is more than likely to be inadequate. 

[Mr Punter]

I think you need to increase the cover.  Sadly it will probably significantly increase the premium.