Home Insurance - Risk & Premium

There are three major determinants to the cost of buildings insurance premium.
Rebuilding cost. The rebuilding cost is simply the cost to rebuild the property. This figure is normally less than the market value of a property (but can be more, in less desirable areas). A surveyor or insurance agent should be able to provide a good estimate as they will have knowledge of similar properties in your area'
Property type. Standard construction properties attract the best rates. Timber frame construction can attract loaded premiums, as indeed will listed properties. This is because the risk is percieved a higher in the former case, and repair costs higher in the latter case.
Location. The location of the property will often determine the risk of major faults occuring. Such risks include flooding and subsidence. Insurance companies have extensive historical data on all areas, and will load according to increased risk.

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