When you take out a building insurance policy, you’ll need to calculate the cost of rebuilding your property. This helps you decide your ‘building sum insured’. Why is this important? Your insurer will pay up to your sum insured for repairs or rebuild costs after building damage or loss due to an insured event.
If you want to insure your belongings inside your home, you’ll also need to work out their replacement value for contents insurance. You can find out more about insuring your home contents.