What is meant by ‘buildings sum insured’?

The Buildings sum insured shown in your policy schedule is the maximum amount the insurers will pay for rebuilding in the event of a loss. It should represent the total cost of re-building assuming a total loss, including damage to outbuildings, car parks etc, and should also have an allowance for debris removal costs and professional fees that will be incurred. Additionally, there should also be an allowance for inflation during the period of insurance and any period of rebuilding. As this inflation allowance is difficult to estimate for future years, we recommend you arrange cover on a ‘declared value basis’ (see ‘What does ‘buildings declared value’ mean?‘).