There is expected to be a rush to re-value more expensive properties if the Chancellor raises the inheritance tax limit to £1million as predicted in the Budget but many home owners may have a shock in store if their properties have been dramatically undervalued for buildings insurance purposes. Many higher value properties may also be listed or of unusual construction which leads to higher re-build costs. It may be worth looking into even if you do not think you are affected by the inheritance tax changes; if the worst happens inadequate buildings insurance could lead a huge shortfall between the insurance pay out and the re-build costs.
An analysis of Land Registry data suggests that owners in Gloucestershire, Yorkshire, Somerset, Dorset and Cheshire may be leading the charge to get their homes re-valued.It could also leave looming insurance problems for up to a third of families living in high value or listed homes which are more expensive to repair or rebuild, according to the study by NFU Mutual, a leading rural insurer and financial advice firm.‘If you don’t know how much your home is worth, then there’s a real danger that you and your family could lose out. Around three in every 10 homes are undervalued by their owners, leaving families at risk of underinsurance and an unexpected tax bill,’ said Nicki Whittaker, high value home specialist at NFU Mutual.