What does the reconstruction value meter entail?

What is a reconstruction value

The rebuild value is used to determine the amount you need to insure your home for. The reinstatement value is the amount needed to rebuild your home in the same place and manner. Many people hesitate when they see the reinstatement value and wonder whether they are taking out the right building insurance. This is because the reconstruction value is often lower than the value for which they bought the home. This is because the resale value also takes into account the location of the house and the land. Because the location and land are not lost in a fire, you do not need to insure them and they do not count toward the rebuilding value. As a result, the rebuild value is often lower than the resale value.

In addition to the sales value and rebuild value, you also have the WOZ value. This is largely related to the sales value and also includes the land and location in the calculation. Therefore, the WOZ value is often higher than the rebuild value.

When do you use a reconstruction value meter?

The rebuilding value meter is often used when taking out a new building insurance policy. To be eligible for a guarantee against underinsurance, you often have to fill in the reinstatement value meter when taking out the insurance. The amount that comes out of the reinstatement value meter determines the insured amount and thus also largely determines the cost of the building insurance.

Of course, there are other ways to determine the reconstruction value of your home. For example, using a (more extensive) appraisal report. However, a standard appraisal report does not mention the reinstatement value.

What is guarantee against underinsurance?

The insurer assumes, because of your statement at the inception of the insurance, that the reinstatement value of your home is X euros. Should it turn out that this value is lower than the actual new-build value of your building, you are underinsured. You will then only be compensated for part of the damage and will not be able to rebuild the house as it was.
To avoid this, you can take out insurance with a guarantee against underinsurance.

How does the reconstruction value meter work?

Based on the type of home (row house,detached,etc.), the contents of the home and finish of home, among other factors, the rebuilding value is determined.

Can anyone use the reconstruction value meter?

Everyone can use the reconstruction value meter, but it cannot be used for all types of homes. Consider, for example, a national monument or a special canal house.

Is a rebuilding value meter valid forever?

Often the insurer will ask you to fill out the rebuild value meter every 5 years to maintain the guarantee against underinsurance. It will also be asked when you move house.

Is everything included in the reconstruction value meter?

The foundation is not included. However, if the foundation is also damaged, a new foundation will have to be made when the house is rebuilt. This, of course, also costs money. Most building insurance policies allow you to insure the foundation for a certain additional premium.

Rebuilding value meter download

Click here to download a reconstruction value meter.