Have you ever wondered about the true cost it will take to rebuild your property from the foundation up? We’re talking about all the permanent fixtures; from concrete and carports to all the little enhancements you have made; like new bathroom tiles, chandeliers, mirrors, and all the bells and whistles in between.

Let’s face it. Building insurance is vital. So, the question remains: Are you adequately insured for your building or structure in the event you need it? Building insurance not only covers the permanent structures on your property, but also all permanent fixtures, fittings, and improvements to your property. These include your swimming pool, solar system, paving, and even that luxurious bath and expensive taps you wanted.

Your home building estimate will depend on a range of factors, such as your home’s floor area or size, design, quality of materials, and even your land slope.

Here is a step-by-step guide to help you calculate the estimate average of your building insurance:

To calculate the square meters (m²), measure the length and width of the area using meters. Then, multiply the length and width together to get the area in square meters (length x width = area).

For example: If the room is 4 meters long and 3 meters wide, its area is 4 meters x 3 meters = 12 square meters.

Measure each room and add it up to get the total square meters of the building.

Below is a list of categories with its relevant price per square meter (m²).

NOTE: The price per square meter is based on AECOM’s 2020/21 Africa Property & Construction Cost Guide.

Choose which category your building falls under. This is calculated per square meter (Width x Length):

For example: The building is a middle-class building, which is calculated at R9,200 (excl. VAT) per square meter.

IMPORTANT: These rates are only guidelines, as obtained from AECOM’s 2020/21 Africa Property & Construction Cost Guide, and may not be an accurate representation of your building’s value.

Download AECOM’s 2020/21 Africa Property & Construction Cost Guide here.

Now, multiply your square meters calculated in Step 1 with the price of the category in Step 2 to get the value of the building.

For example: 12 m² x R9,200 = R110,400 (Excl. VAT). The value of the building insurance should be at least R110,400 (Excl. VAT).

IMPORTANT:

This formula is only an estimation of the value of the asset. The values have been extracted from AECOM’s 2020/21 Africa Property & Construction Cost Guide. Voorpos is not a qualified appraiser. You should not accept the calculations to be the actual value thereof. Although Voorpos has made every effort to ensure the accuracy of these calculators. Voorpos does not guarantee, either expressed or implied, the accuracy and completeness of these calculators. Voorpos does not accept any liability for loss or damage of whatsoever nature which may be attributable to the reliance on and use of this formula.

Although the price will remain valid for a period of 12 months, we may however make changes to the formula without any notice of such changes. Calculations must therefore be regularly renewed to remain active.

Here are a few important things to keep in mind:

So, the next time you relax next to your pool, sink into your bubble bath, or have friends over for a braai; consider if you will be able to rebuild the little luxuries you have gained over the years. Can you afford to have the cover you really need?

If you require any further advise, or need assistance with your building insurance, contact us today!