It’s been a difficult time for landlords. The uncertainty of the pandemic has created unique challenges, and, although the situation is improving, the future is still uncertain.
With so many things to consider, rebuild costs are probably not at the top of landlords’ list of priorities right now. It’s crucially important, however, that landlords are fully aware of exactly what the rebuild costs for each of their properties might be (especially in light of the dual hurricanes and wildfires raging across the nation).
What are rebuild costs?
According to a recent guide from Direct Line for Business, rebuild costs are equal to the total amount it would cost to rebuild your property from the ground up; including architects’ fees, the cost of materials and labor, and more.
Rebuild costs are not the same as the property’s market value, however, which is why you will need a dedicated rebuild cost valuation to make sure your insurance coverage is correct. The market value takes into account the entire land, while the rebuild cost only covers the cost of rebuilding the property itself.
Download the guide to learn more
The guide also explores why rebuild costs are necessary for insurance, and why it’s in the interests of landlords to measure these costs as accurately as possible to ensure they are fully covered if the worst happens. According to the guide, it is also recommended to employ a professional chartered surveyor to calculate your rebuild costs. Although online calculators are available, these are less reliable – and accuracy is key to ensure you’re not shortchanged.
If you want to find out more about rebuild costs, it’s worth reading Direct Line’s short, bite-sized guide in full.