Bank request on building insurance

yop

Registered User
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403
Hi
I tried to find a relevant forum but I couldn't. So pls move as appropriate.

KBC have come back to me after asking for the indemnity form from the house insurance and requested that the building cost matches the property valuation.
The rebuild cost on the insurance is approx 1/2 of the valuation that is on the house and the rebuild cost is no where near that the valuation is. I self built the house and I know the costs pretty well.

Is this a normal request and can I just tell them to take a hike?
 
You probably misunderstood them.
On a standard valuation report there are 2 values: the house valuation (which includes the site), and a rebuild cost (reinstatement cost). To protect the banks interests, your insurance should cover the rebuild costs.
 
Thanks for the reply. No I have it in email.
"The letter of indemnity scanned only covers you for €150,000 but we require the cover to be €300,000 to match the valuation report "
 
Do you have a copy of the valuation report yourself, and what's the reinstatement value that was put on it?
 
take out the policy with the €300K, then reduce the sum insured at the renewal date.
 
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