Brits paying over the odds for buildings cover

Nearly one in three (30%) Britons think that rebuild cost of their property is the same or more than the current market value, according to Confused.com.

Research carried out by Confused.com, spanning six months, showed that 10% of consumers thought that the rebuild cost and market value were the same, and 20% thought that rebuild cost was even higher - a mistake which could prove to be costly to 30% of Britons.

To help consumers get the most accurate quotes possible, Confused.com has launched a rebuild calculator, provided by the Building Cost Information Service (BCIS),part of the Royal Institution of Chartered Surveyors (RICS), which will automatically determine a home's rebuild value using information provided by the customer. The new service will be comprehensive and easy to use, with consumers not needing to input any further information about their home.

Darren Black, head of home insurance says: "The fact that one in three consumers considers the rebuild cost to be the same as the market value is unsurprising as it's difficult to calculate, but it could see them paying over the odds, year-on-year."

"The launch of the new easy-to-use BCIS rebuild calculator, is designed to empower customers and subsequently enable them to get the most accurate home insurance quotes possible. As a result, customers could end up saving significant amounts of money on their policies. We are delighted that the BCIS has worked so closely with us."

Andrew Thompson, International Development and Data Director BCIS, says, "Many people may expect their home insurance premiums to go down as the market value of their property decreases but they will be disappointed when their renewal comes through. It is clear that many people are miscalculating their home rebuild cost but the service we are introducing, in conjunction with Confused.com, should ensure that this is no longer an issue. Homeowners who assume they should be insuring their home based on market value or those who have failed to provide their insurance provider with an accurate and up-to-date rebuild cost in the past three of four years could save money by using this system. We are keen to ensure that consumers have the right cover at the right price."