Home insurance warning over rebuild costs

A misunderstanding of how buildings cover works could mean people are paying too much for their home insurance, a new study has warned.

Research by Confused.com found that 30 per cent of Britons think the rebuild cost of their property is the same or more than the current market value, meaning they could be paying too much for their home insurance.

Darren Black, head of home insurance at the firm, said: The fact that one in three consumers considers the rebuild cost to be the same as the market value is unsurprising as it's difficult to calculate, but it could see them paying over the odds, year-on-year.

People should make sure they get the most accurate quote as possible for the rebuild cost of their property, the home insurance expert added.

Recently, Mr Black warned consumers to make sure they check what a home insurance policy covers when looking for a new deal.

This is important as it means people will not accidentally invalidate their insurance, he explained.