House Insurance
Apr 4th 2007, 1:34 pm
#1
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Location: Costa Valencia
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House Insurance
Is the insured value of a house in Spain based on rebuild costs rather than re-sale value?
Apr 4th 2007, 2:22 pm
#2
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Apr 4th 2007, 7:53 pm
#3
Joined: Jun 2006
Location: Granada Costa
Posts: 10,902
Re: House Insurance
Insurance companies always base the insurance on the rebuild cost because that is what you are insured for.
The rebuild cost has to assume a complete catastrophe which includes tearing the remains down and clearing the site before rebuilding.
The resale price will include the land and the value of that is not included in the value for insurance purposes.
If you insure your house for the resale value you will be paying over the odds.
