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How much does rebuilding your home cost?

3 minute read

If you’ve ever applied for a home insurance quote, you’ll have been asked to provide an estimated rebuild cost. We explain exactly what that means and how to work it out.

  • A home’s rebuild price is the estimated cost of any labour and materials needed to rebuild it from scratch
  • An accurate estimate is required for your insurance to make sure the provider can cover all the costs if it needs to be completely rebuilt 
  • The BCIS Public Rebuild Calculator allows you to work this out quickly if you have a standard home without any architectural features
Whenever you apply for buildings or home insurance, the estimated rebuild cost is something you have to specify. It depends on the size, age and style of your home. Usually, the figure is less than your home’s market value or sale price.

If you have a home built using standard construction methods, you can usually use a BCIS rebuild cost calculator to get an accurate figure. Homes with more striking architectural features, flats and maisonettes usually require a visit from a chartered surveyor to assess the property and work out the costs.

The cost of rebuilding your home

Rebuilding your home isn’t always as costly as it sounds. It can sometimes be a cheaper option than moving if you want a new house but enjoy the area of your current home. Usually, the rebuild cost of your home is less than the market value, as it doesn’t take into account the price of the land. 

Rebuilding can also be a good way to save money when compared to the cost of renovating. By knocking your old house down, you’ll have a clean slate to start afresh with, and won’t have any of the costly holdups that can happen with renovation projects. 

Damage caused by fire, flooding or a disaster can drive you to rebuild your home. This gives you the option to create the house of your dreams.

What do I need to factor into the rebuild cost? 

To work out the rebuild cost of your home, you’ll need to account for a few different factors: 

  • The cost of the materials
  • Labour costs
  • Your home’s surface area
  • Property type
  • Age of the property

If your home is made from non-standard materials, it could be more expensive to rebuild than a standard property. Other materials, such as thatched roofs, can also incur a higher cost.

How to work out the cost of rebuilding a house? 

To work out how much it would cost to rebuild your house, you’ll need to work out its square footage before using the rebuild calculator.

Measure the length and width of the ground floor walls and then multiply the two figures together. 

Once complete, if the upstairs is the same size simply double the figures. If not, measure the upstairs separately and add the two figures together.

If you’ve had an extension on your home or a loft conversion, it’s important to update the amount with your home insurer to make sure you’re fully covered.

Why is the rebuild cost different from the market value of my home?

The main reason that the rebuild cost of your home is often cheaper than the market value is because the figure is based on the cost of materials and labour alone.

When your property is valued for the market many other factors are taken into consideration including the geographical area. This is why it can work out cheaper to rebuild your home than to move house or renovate in some cases.  

It’s important to get an accurate estimate of the costs as this is what determines your home insurance price and prevents you from over or underinsuring your home. 

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