House rebuild cost: how to calculate it
Find your rebuild value (not resale) for buildings insurance
When you get a home buildings insurance quote, you’ll be asked for your home’s rebuild cost – the amount it would cost to completely rebuild your property from scratch. This is for home insurance purposes and isn't the same as your home's market value. If your insurer gives you an estimate, it’s still worth double-checking using a free rebuild cost calculator.
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What is the rebuild cost of my home?
If you own your home and you’re responsible for its maintenance (as is typically the case with freehold properties), you’ll also be responsible for arranging buildings insurance – and if it’s mortgaged, this is usually mandatory. If you rent or your property is leasehold, your landlord or freeholder usually arranges the buildings cover.
Buildings insurance covers the structure and permanent fixtures of your home, and should cover the entire cost of rebuilding the property if it’s totally destroyed – for example, by fire, flood or subsidence.
Importantly, your rebuild cost is not your home’s resale or market value.
Term | What it means | Why it matters |
|---|---|---|
Rebuild cost | Cost to rebuild your home from scratch | Used to set your buildings insurance |
Market value | What your home would sell for | Much higher – not used for insurance |
Sum insured | Max your insurer will pay out | Based on your rebuild cost |
What factors affect the rebuild cost?
The key factors are the costs of labour, materials and architects in your area. Buildings insurance also typically includes the cost of temporary accommodation while repairs are carried out.
Rebuild costs tend to be higher if your home is:
Large
Listed
Thatched
Made of non-standard materials
Recently extended or renovated (extensions change your floor area, which directly affects your rebuild value)
Given that construction costs have risen sharply recently, reviewing your rebuild figure regularly is sensible.
How do I calculate my rebuild cost?
The most accurate way is to get a professional RICS rebuild survey, though it can cost up to £1,500. Most people, however, start with a rebuild cost calculator – the Association of British Insurers' (ABI) free tool gives a solid estimate for standard homes.
Use the free ABI rebuild cost calculator
The ABI’s rebuild cost calculator gives a quick estimate for standard homes. It only takes a few minutes, but you’ll need to register – and you can use it up to four times a year, so use it sparingly.
What you’ll need
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Property type (detached, semi, terrace)
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Year built and construction (eg, brick, stone)
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Number of floors and rooms
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Postcode
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Floor area (find this on a recent Rightmove /Zoopla floorplan if available)
How to use it
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Enter your property details, including floor area and postcode.
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Review the rebuild cost estimate generated.
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Note or save the figure for your home insurance quote.
Recheck periodically to keep your rebuild value accurate (within the four-use limit).
When you may need a RICS survey
A paid survey is the most accurate way to obtain your rebuild cost. You may need one if your home is:
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Listed
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Thatched
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Unusually large or architect-designed
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Of non-standard construction
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Recently extended
A RICS rebuild survey can cost £400–£1,500, but gives the most reliable reinstatement cost. If you own a flat or maisonette, the freeholder normally arranges and sets the buildings sum insured for the whole building. You typically only need contents insurance unless your lease specifies otherwise.
What happens if I get the rebuild value wrong?
There are two possible outcomes here:
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If you underestimate the cost: Your risk your house being underinsure. If your home is destroyed and costs more to rebuild than your policy allows, you’ll have to cover the shortfall – potentially tens of thousands of pounds.
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If you overestimate the costs: This is safer, but you’ll pay higher premiums than necessary. Overestimating too much means you’re insured for more than you’ll ever realistically need.
More home insurance tips
We've a whole host of home insurance top tips and tricks to get cheap cover. Below is a quick round-up of where we'd suggest you head to next...
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Read our full Cheap home insurance guide, including our step-by-step cost-cutting system.
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If you rent, see our Cheap contents insurance for tenants guide.
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Own a non-standard property? You may need specialist non-standard home insurance
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See our full Home insurance section with all our guides.
Rebuild cost FAQs
How do renovations affect my rebuild cost?
Renovations can increase your rebuild cost when they change your floor area or add high-value fixtures. Update your figure after extensions, loft conversions or major upgrades to avoid underinsurance.
What if I live in a flat or maisonette?
For most flats, the freeholder sets the building’s overall sum insured. Leaseholders typically only need contents insurance, unless the lease specifies otherwise.
How often should I update my rebuild value?
Review your figure every couple of years, after renovations, or if building costs spike. Many policies include index-linking, but it’s still worth checking your rebuild value manually.
Is index-linking included in home insurance?
Many home insurance policies apply index-linking, which automatically increases your sum insured in line with building-cost inflation. It helps keep cover accurate, but it’s still sensible to check your rebuild figure periodically.
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