House Insurance is changing in New Zealand - square metres has gone and it is now based on sum insured. All House Insurance will go through this transition, and you will receive advice from your insurer if you haven't already.
This is a big shift for home owners, as no two houses are the same - the cost of replacing them varies hugely depending on materials, fittings, and design factors. Therefore your sum insured needs to be sufficient to cover the cost of rebuilding your home including architect fees, demolition and debris removal costs.
It is very important that your home is insured for the correct sum. If it's underinsured it could mean that in the event of a total loss, your cover is not sufficient to rebuild your home. On the other hand over-insuring will mean that you are paying a higher premium than necessary. You need to be sure that the value you insure your house for is enough to fully cover a total rebuild in the case of a total loss. You can obtain a value from a qualified independent professional such as a builder, valuer or quantity surveyor. This would be your choice and at your cost to give you peace of mind that you've set the right sum insured not just accepted the insurance company's value.
There is a calculator tool that most insurers are offering their clients as a guide for working out the correct sum insured, as an example you can click
here to go to
Lumley's - it is free to use so feel free to go through and use it!
Our recommendation is to make sure you are informed, read any and all advice and correspondence you receive from your insurer or broker - this is quite an important change for all home owners.
If
Insurance People are your brokers, watch your letterbox as your advice is due out shortly and please read all that is enclosed and contact your
Adviser should you have any questions or concerns.
If we are not your brokers and you would like a
quote or advice,
contact us anytime it would be our pleasure to help!
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