Buildings insurance - Bedroom-rated policies

These base the amount you are insured for on the number of bedrooms in your house (including bedrooms that you use for another purpose: as an office, for example). The more bedrooms you have, the higher your insurer will assume the rebuilding cost to be. This is convenient because you do not have to work out the precise amount of cover that you need. The drawback is that the actual cost of rebuilding your house may be lower or higher than the figure assumed by the insurer. This means that you could be paying over the odds for your policy or be under-insured; although if there is no limit on what the rebuilding cost can be, you will be covered.