Proper valuation guarantees full coverage without extra costs. Follow this simple guide:
Key Difference: Market Value vs. Insurance Value
| Market Value | Insurance Value |
|---|---|
| What a buyer would pay (includes land value) | Cost to rebuild the structure from scratch |
| Affected by location, demand, and market trends | Based on construction costs, materials, labor, and professional fees |
| Used for selling/buying | Used only for insurance |
Insurers only pay to rebuild your home – not for the land it sits on!
Methods to Calculate Rebuild Cost
Professional Valuation (Most Accurate)
Cost: Approximately P2,500–P6,000
Conducted by: Property valuers at Belfort Properties
2025 Rebuild Rates:
Basic finish: P4,000–P5,200/m²
Mid-range: P4,700–P5,750/m²
Luxury: P5,500- P9,750/m²
What is Included in Insurance Valuation?
- Main house structure (walls, roof, floors)
- Built-in features (kitchen cabinets, bathrooms)
- Outbuildings (pool house)
- Professional fees (architect, engineers)
- Demolition and debris removal costs
Exclusions:
- Land value
- Movable items (furniture – these need separate cover)
5 Costly Mistakes to Avoid
- Using council rating valuations – They’re often 50–70% below rebuild costs.
- Forgetting renovations – Update your valuation for added patios or electrical upgrades.
- Ignoring local building costs
- Underestimating “hidden” costs – Like temporary accommodation during rebuilding.
- Not reviewing annually – Construction costs rise 6–10% yearly (adjust your cover!).
When to Revalue?
- Every 2 years
- After major renovations
- When building costs spike
