There have recently been major changes in the way New Zealand homes are being insured, with insurance companies moving from Full Replacement cover to Sum Insured policies.
As a homeowner, it is now your responsibility to specify the cost for rebuilding your home in the event of fire or other disaster. A Sum Insured policy states the maximum amount your insurance company will pay out, so it’s vital you get that sum right.
Talk to us. Many of our valuers also specialise in providing residential property valuations across New Zealand, and we’ll help you navigate through what can often be a confusing process.
There are many ways to work out your home’s insurance value including online calculators and registered valuations.
A Registered Valuation Insurance Certificate includes information on the cost to replace your home with ‘modern equivalent’ materials, any improvements that may need replacement (such as fences, driveways and pools) and will also make allowances for demolition costs, architect or engineers fees and inflation.
By comparison, online calculators use generic property and building data which may or may not correlate to your property. Floor area, together with construction type, land contour, and many other factors need to be considered. If you are not satisfied with your property’s value from an online calculator and don’t feel it will be sufficient to rebuild your home, a Registered Valuation may be the right option for you.
An insurance certificate from an independent Property InDepth Registered Valuer will remove any guesswork and take the risk out of the calculation, leaving you confident that in the event of a disaster, and at a very stressful time, you will have enough cover to rebuild your home.
To outline your “sum insured” options Property InDepth has written a Guide to Getting the Right Sum Insured and an easy to follow flow diagram to help Kiwi Homeowners.
We’ve created both the guide and the flow diagram, which appears below, from our perspective as insurance valuation specialists and as a pro-active and positive way of responding to the new changes in the insurance landscape. We hope they help!
Click Sum insured guide from Property InDepth to view our guide.
Call us for independent advice on 0800 463 378 or if you’d like to book your valuation online, you can do it here.
For more information on how a registered valuation can help you work out your home’s Sum Insured value click here.Back to valuation services