we've recently applied for a mortgage top up as we are doing a lot of renovation work on the house. The bank insisted as part of the application that the house be valued and gave us the name of a guy they use. So far so good. The guy came to the house and valued the house at €230k as it was (works are ongoing at the moment) and when the works were complete he reckoned it'd be worth €265k on the open market.
I just got an email from the bank saying that our current house insurance may have to be increased from it's current €220k to €350k as suggested by the guy who came to value the house. I queried this with the bank guy we are dealing with for the loan and he said that that would be right - €220k to rebuild the house and the rest (€130k) for clearing the site etc etc. It's a terraced house by the way.
My understanding is that your house insurance should be based on the rebuilding costs of your home (which I estimated from the quantity surveyers website) and not the value of it on the open market plus the cost of clearing the site etc. Am I going insane or are they completely wrong?
I just got an email from the bank saying that our current house insurance may have to be increased from it's current €220k to €350k as suggested by the guy who came to value the house. I queried this with the bank guy we are dealing with for the loan and he said that that would be right - €220k to rebuild the house and the rest (€130k) for clearing the site etc etc. It's a terraced house by the way.
My understanding is that your house insurance should be based on the rebuilding costs of your home (which I estimated from the quantity surveyers website) and not the value of it on the open market plus the cost of clearing the site etc. Am I going insane or are they completely wrong?