What Indexes Would A Builder Use To Establish Rebuilding Costs?

[davidk65]

an existing building needs to be revalued for insurance purposes. It has been suggested that all that is needed is to apply the RPI to the past valuation that the insurance worked from. I don't think that is correct as building and RPI indexes must be different. If there is a separate index what is it called, and were can it be accessed or is it for professional use only?

[Zacs-Master]

Firstly it would be preferable to have. Quantity surveyor determine the rebuilding costs as a builder may use non standard rates / materials. There's a book called SPONs which I believe is still the QS bible.
http://www.amazon.co.uk/Spons-Architects-Builders-Price-Book/dp/1482204061

[buildersmate]

Zacs is quite correct.
You cannot use valuations produced by surveyors, as they represent the market price for sales purposes. For properties in and around the south, a very significant part of the overall valuation is the value of the land which is never destroyed in a fire.
Building costs do vary across the country, but not by anything like the skewing of property prices.
I'm unsure what problem you are trying to solve, as insurance companies invariably quote very wide bands when they provide quotations for buildings insurance. Typical figures I have seen are "up to £500k" rebuilding cost with the next band being at £750k, or even £1m.
Spons is obtainable by anyone but it's price makes it professional use only. A lot of factors feed into producing it and it is far too detailed for what you are after.
The back of the monthly publication Housebuiding & Renovation magazine may still contain a table of typical building costs, by region. If you want a very rough and ready figure use £1400 per square metre of floor area (not footprint area).

[Maydup]

Good question David. When presented with an empty box to complete, with no guidelines or bands, what is the rebuild cost of your home?

How do we know what with rocketing building inflation and the cost of materials all unknown to the layman.

buildersmate - forgive me but is that £1400 per sm of floor area per floor?

[bhg481]

Try this:

http://calculator.bcis.co.uk/

[davidk65]

The question arises because the insurance broker advised that best practice is to have the building revalued every 6-7 years for insurance purposes e.g. rebuilding in the event of a fire. There is a building valuation that has been in existence for some time, but nobody seems to know how this valuation was arrived at i.e. was it done by a professional. Because of the lack of clarity nobody really knows if the building is over or under insured. My own view is it ought to be revalued but that is not my decision
Thanks to everybody for their contribution to this discussion.

[buildersmate]

Pardon my cynicism when it comes to most professional advisors, but no valuer is going to do one for less than £100 (plus VAT, of course). That sounds like an average of £20 per annum, dumped as an extra on the premium. Best practice has to be that one estimates it and adds a bit, if in doubt. Or drop in on the link bhg provided or your local W H Smith's to peruse the back of H&R.
Maydup - yes to your question.