Thank you again for your very thorough and helpful report. it will become the backbone of our efforts to maintain the house in the coming months and years, hopefully, if all goes well.
Many people insure their homes for the market value, or rely on a mortgage valuation, but this could be a costly mistake in the event of a claim. Statistics show that inaccurate insurance is a common problem, with around 30% of private properties being underinsured. Of course, insuring for a lower sum leads to lower premiums, so this could be a temptation, but the consequence, in the case of a disastrous incident where your home is destroyed, doesn’t bear thinking about.
It’s important to consider, too, that the value of your home may have changed over time. Perhaps you’ve built an extension or carried out an expensive refurbishment? It’s quite possible, then, that your insurance is too low, and you could benefit from a reinstatement cost assessment. Each valuation needs to be index-linked with inflation, and other factors must be taken into account, such as the improvements you’ve made, fluctuations in market value and building costs, including the rising costs of materials.
 From Moneysupermarket.com, AXA, and Daily Telegraph