Third of Britons overestimate buildings cover cost

A third of Britons could be paying over the odds for buildings insurance cover because of confusion over rebuild costs.

Price comparison site Confused.com found ten per cent of consumers thought rebuild cost was the same as purchase price, while 20 per cent believe that rebuild cost would be higher than the initial building cost.

But a semi-detached house, worth around £180,000 and measuring 742 square feet, with a garage, would cost £85,700 to rebuild if it was located in the south-east and £79,700 to rebuild if it was in the north-east, according to Confused.com.

Debra Williams, managing director of Confused, said: "The fact that one in three consumers consider rebuild cost to be the same as purchase price is unprecedented, and could see them paying over the odds year-on-year.

"Being financially savvy certainly pays; not only does it mean that consumers can gauge whether they are paying an acceptable amount for insurance, but they are more likely to shop around for lucrative deals if they feel that they are being sold short."

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