800k house

[SLCZ3]

I have just finished speaking to the wife on the phone regarding the house insurance which is due for renewal, apparantly the broker has told her that they can renew the insurance for the same price as last year, but the amount insured for has gone up to 800k, FFS this is about 4 times what it will sell for!!!! if it ever did sell these days.

Is it worth burning it down and collecting the insurance, although i would be concerned about losing my no claims that has been accrued.

PH collected wisdom and ruminations on this would be welcome.

PS Actual insurance premium is about what i would pay for a very decent Aston/Ferrari.

[Cupramax]

Thats just the upper payout limit, they wont give you that if you burn it down

[over_the_hill]

The actual buildings cover is usually less than the sale value of the house, because in the event that the house did burn down, blow up, float away etc. you still own the land it's on and the services are already in place - both of which are a significant proportion of the price. All the builders have to do is turn up with a truck load of materials and rebuild it.

[kambites]

Most insurers seem to have a set of thresholds - our last renewal gave an estimated property value and a maximum payout, and the maximum payout was over twice the value. I assume the maximum payout is the amount that they insurer is underwritten for on the policy.

Does buildings insurance cover third parties against the house falling down on them?


ETA: And yes of course you could rebuild our house for about half its market value.

[not260]

The 800k limit also has to cover making the site safe/ clearing the site and rebuilding the house. If the house were to burn down they wouldn't say here's 800k have a new house and leave the burnt out shell of your old house in the street.

[bqf]

SLCZ3 said:

I have just finished speaking to the wife on the phone regarding the house insurance which is due for renewal, apparantly the broker has told her that they can renew the insurance for the same price as last year, but the amount insured for has gone up to 800k, FFS this is about 4 times what it will sell for!!!! if it ever did sell these days.

Is it worth burning it down and collecting the insurance, although i would be concerned about losing my no claims that has been accrued.

PH collected wisdom and ruminations on this would be welcome.

PS Actual insurance premium is about what i would pay for a very decent Aston/Ferrari.

What? You have a £200k (value) house and to insure it, the premium is the same as the purchase price of a very decent Aston/Ferrari?

Eh?