Declared Value

The total cost to rebuild the property including:

* Foundations
* Walls
* Roof
* Partitions
* Doors and windows
* Any applied finishes and decorations
* Built-in fittings including fitted wardrobes and kitchens
* The installation for heating, hot and cold water, gas, electricity, lighting (excluding decorative light fittings), ventilation, sanitation and disposal, all sanitary fittings
* Car parks that are part of the property
* Pavements that are part of the property

It also includes an allowance for professional fees and debris removal costs.

Most importantly, the Declared Value is not the value of the property as you would see in an estate agents window.

The Declared Value is the cost of rebuilding the property insured on the first day (Day One) of each period of insurance. As long as this figure is adequate on that day any claims will be free of average. If it is inadequate it is possible that average could be applied meaning that any valid claim payout would be proportionally reduced by the amount that the property is deemed underinsured.

Sum Insured

The insurance broker/underwriter automatically adds a Day One Uplift (sometimes called an Inflation Provision) to the Declared Value to cover inflation during the insurance year and during the subsequent period required for designing, planning, tendering and actual reconstruction, however long that might take. This is usually 30% of the Declared Value. This new enhanced value is called the Sum Insured.