1. Buildings Insurance How to work out your Sums Insured Working out your Buildings Sum Insured Your home is probably the most valuable asset and you need to be sure that it is adequately insured. Each year in the British Isles over 56,000 homes are damaged by fire - some are completely destroyed. The owners may then face a bill not only for rebuilding but also for site clearance, labour and materials, and professional fees. You must get your buildings sum insured right and this guide will help you to arrive at a figure to cover the total cost of rebuilding your home. If you take out a mortgage, it is usual for your lender’s surveyor to provide you with a rebuilding cost figure on the mortgage valuation report. You can use this amount as the buildings sum insured if you’re arranging insurance on your home for the first time. However, this figure may change quite quickly as rebuilding costs fluctuate and you should check to make sure that your sum insured is still up to date. To work out your buildings sum insured, you could use the following steps: Step 1 Draw a sketch plan of the ground floor of your home making sure you include bay windows, porches and any other extensions. If you have a garage, include it only if it is built into the house - an integral garage. Measure the length and width of your home in metres from the outside. Measure bay windows, porches, integral garages and any other extension separately. Then multiply the length and width to give you the ground floor area in square metres. Add the are of the bay windows, porches, integral garages and any other extensions to this figure. 2m 1m 4m 1m 8m 6m If your upstairs is the same as the ground floor, simply multiply your total by two. If it is different, measure the rooms from the inside and add 300mm* for outside and 150mm** for inside walls. Work out the are of this floor, then add the two figures together to give the total area of your home. If your house has three storeys (not counting the attic, in a two storey house unless the roof space has been converted into a third storey), only 70% of the floor area of the third storey needs to be added to the first and second storey floor area to give you the total area of all three storeys. Manx Stone Walls Approx. * = 610mm ** = 457mm Example Floor Plan Step 2 Using Table A, check the number for your region. Using table B, match the type and size of your house, its age and where you live. Check to see if the figure you calculated in step 1 in similar to the typical area shown in this table. Then multiply the total area of your home calculated in step 1 by the rebuilding cost in Table B. This will give you the total rebuilding cost of your home, including bay windows, porches, internal garages and any other extensions. Now you should consider steps 3 & 4. Step 3 - Luxury Fittings The rebuilding cost figures are based on houses with average quality fittings and single glazing. If you have above average fittings such as luxury bathroom or kitchen, fitted bedrooms, double glazing or a burglar alarm, you may need to increase your rebuilding cost by up to 25% to allow for these Step 4 - Extras If your garage is separate or built on the side of your house, add an appropriate amount to the rebuilding cost. Use the following figures as a guide: An amount should also be added to the rebuilding cost to take account of fences, gates, walls, patios, paths, terraces, drives, conservatories, outbuildings such as a shed or greenhouse, swimming pools and tennis courts. If your home has a cellar, again you should add a further amount to the rebuilding cost. Use the following figures as a guide: * These figures are given as an approximate amount ** Typical external floor area To see how the whole calculation works in practice, see the examples on the back page of this leaflet.

2. How to work out your Buildings Sum Insured Tower Insurance Company Limited. Registered in the Isle of Man No. 521 Registered Office Jubilee Buildings, 1 Victoria Street, Douglas, Isle of Man, IM99 1BF Authorised & Regulated by the Isle of Man Government Insurance & Pensions Authority Covered by the Isle of Man Financial Service Ombudsman scheme Tower Insurance Company Limited is a member of the RSA Group of Companies IMPORTANT Your sum insured must be adequate to cover the cost of rebuilding all your buildings in the same way, size, style and appearance as when they were new. The market value of your home or its rates / Council Tax valuations bear no direct relationship to it’s rebuilding cost and you must not insure for these values. This guide can help you work out the current cost of rebuilding your home. Once you have taken out your insurance, you do not need to worry about fluctuating rebuilding costs as we adjust your buildings sum insured for each month using the House Rebuilding Cost Index. For your protection we will not reduce your sum insured if the index goes down. Please note that if you extend or improve your home, you should let us know at once. If you do not, you may find yourself under-insured. * These figures are given as an approximate amount. Please make sure that the amount used is adequate for your needs.

3. Buildings Insurance How to work out your Sums Insured Table B - Rebuilding Costs - September 2012 £ per square metre (sq. m) These figures are based on the much more detailed ‘Guide to House Rebuilding Costs’ published by the Building Cost Information Service of the Royal Institution of Chartered Surveyors. They provide for an average quality home to be rebuilt to it’s existing standard using modern materials and techniques and in accordance with current Building Regulations and other statutory requirements. The rebuilding costs include an allowance for full central heating costs (approximately £3,550), demolition and site clearance costs, Architects’ and Surveyors’ fees and half the cost of rebuilding party walls in terraced and semi-detached houses. Region IOM - Isle of Man Region 1 - Greater London & the Channel Islands* Region 2 - South East & East of England Region 3 - South West, North West & West Midlands Region 4 - North East, East Midlands, Yorkshire & the Humber, Wales, Scotland & NI* * Rebuilding costs in CI & NI may vary from those shown - seek local advice Table A - Regions The figures in Table B are a guide only and we will not be held accountable for any underinsured properties. if in the event of a claim your property is deemed to be underinsured the onus is on you as the property owner to ensure that this is corrected. Houses do vary in design and construction and the table is not suitable for all types of property. If you are in any doubt about the rebuilding cost of your property, a professional assessment is essential. You can instruct a qualified surveyor who is a member of the Royal Institution of Chartered Surveyors who will charge a fee.