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.

[BTC Builder]

13 hours ago, SteamyTea said:

 

Make your mind up what units to use.

 

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

 

To me that's very expensive. Once the VAT has been returned I've built it for £200k. 

 

With two good men on £250 a day, you'd still get it done for less than £400k. It's amazing how much money people waste on dead labour, people who hide, and project managers. I should be greatful really as they keep me busy. 

[JohnMo]

1 hour ago, BTC Builder said:

It's amazing how much money people waste on dead labour, people who hide, and project managers.

But that is real life.

 

1 hour ago, BTC Builder said:

I've built it for £200k

 

Your reinstatement is based on normal terms, not self builder, buying carefully, working long days efficiently etc. Realistic pricing is £2500/m² possibly more depending on spec.

[Roundtuit]

36 minutes ago, JohnMo said:

But that is real life.

 

 

Your reinstatement is based on normal terms, not self builder, buying carefully, working long days efficiently etc. Realistic pricing is £2500/m² possibly more depending on spec.

Plus plot clearance and any additional costs associated with a brownfield site.  Assuming the key requirement of a reinstatement cost is for insurance purposes, I wouldn’t want to estimate on the low side.  It might not make a huge difference to costs as policies tend to have an 'up to' limit in quite broad brackets.  I know for sure that if I had to rebuild my place I would not be hands-on again, so insurance would need to cover a builder and their profit margin.