Until now, your home insurance policy didn’t specify a dollar limit – your premiums were simply calculated on the number of square metres you had insured. But from now on, homes will be covered for rebuild or repair up to a specified maximum value. This value is called the Sum Insured, and you should choose the amount that is right for you and your needs.
When your policy comes up for renewal, we’ll send you a default Sum Insured amount based on a calculation of $2,000 per square metre for the number of square metres recorded on your policy. The default amount does not take into account the particular features of your home such as the materials, quality or location.
You may need more cover, especially if your home has features like decks and pools, or other improvements. If that's the case, have a look at options two and three.
The Cordell calculator is an independent online calculator which can help you work out the Sum Insured value of your home. The calculation is based on typical rebuild costs for houses with similar materials and features. When estimating your home’s rebuild cost yourself, here are some things to consider.
Remember, your broker is there to help so if you get stuck or are unsure of something, give them a call.
Alternatively, a quantity surveyor, builder, valuer, or other suitably qualified professional can provide you with an estimated rebuild cost. Getting expert advice ensures that all the unique aspects of your home are taken into account.
If you’re estimating your home’s rebuild cost yourself, remember to consider the following features. These can all have an impact on the cost of rebuilding.
The Christchurch earthquakes showed us all that natural disasters do sometimes happen. The move to Sum Insured means that insurers are able to predict their exposure to such events in dollar terms. Importantly, it also means that you now have some control over how much insurance cover you buy, just like you do with your contents insurance.
Absolutely. A key part of this change is that you can now specify how much you think it will cost to rebuild your home.
Size is still the big one but there are others such as location, age, materials used and so on. Also, features such as pools, paving, driveways, retaining walls and any
improvements on your land need to be taken into account too.
No, it’s completely different. Sum Insured is the cost of rebuilding your house as it was before it was destroyed or damaged.
The Sum Insured is the maximum amount we will pay towards the cost of rebuilding your home. If your rebuild costs were more than the Sum Insured, you would have to contribute the difference. If the cost of rebuild is less than the Sum Insured, we will only pay the actual rebuild amount.
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This information is general in nature only. It does not constitute a recommendation, opinion or guidance as to the sum insured figure that is appropriate for your individual circumstances. It does not constitute a recommendation, opinion or guidance as to the relative merits of the current replacement cost insurance cover versus the new maximum sum insured insurance cover provided by Vero. This information does not constitute personalised financial advice; it does not take into account your particular financial situation, needs or goals, or tolerance for risk. Whilst every effort has been made to ensure that the information is accurate, you should not rely on this information to make any financial decision