House Value down, Insurance premium down?

[KFB123]

If the value of your house goes down does this in turn mean that the reinstatement value of your house goes down? In these times, labour is chaeper therefore it is cheaper to build a house.
I presume that if your reinstatement value decreases, maybe it would result in cheaper house insurance?
Anyone have any ideas?

 

[Ravima]

you are correct.

if reinstatement value is lower than last year, then you can reduce sums insured. however, be sure that your sum insured covers not only the cost of the premises, but add on for removal of debris; further demolition; engineers fees etc.

 

[jpd]

You are insured for the reinstatement value of the property ie the rebuilding cost which has nothing to do with the resale value.

But yes, we could expect that the cost of rebuilding a property will be lower in 2009 than 2008 but ..

 

[briancbyrne]

.....but premiums are up 10 - 20% on last years house premiums !