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Insure your home for its real value

Key points when insuring the value of your home

When insuring your home, it is now more important than ever to get independent advice.  House insurance has changed and your home may now no longer be insured for its “Full Replacement”. 

Your house now needs to be insured for a “Sum Insured”; a value that should represent the replacement cost of the house. It makes sense to obtain as much sound advice as possible to make the best decisions in protecting your most valuable asset.

You will need to determine an appropriate “sum insured” for your home.  The best method of determining this is by employing a quantity surveyor or registered valuer, however there is a free tool available at www.need2know.org.nz that can also be used.  There are many pre-conceived notions, speculations and simply bad advice around determining the sum insured, so it is important that you contact a broker who can tell you what the sum insured needs to represent and how your policy will respond. 

Common and costly mistakes are made by people;
  • believing they need to insure their home for the “GV” stated in their rates demand,
  • over or underinsuring their home by a factor of 15% by not applying GST correctly to the “sum insured”,
  • not including costs including demolition of the existing structure, compliance costs and draughtsman’s fees, and
  • not knowing their policy wording and understanding the limitations and required extensions.
Don’t take the risk.  Speak to a broker who understands what you need and enjoy peace of mind knowing your home and most valuable asset is in good hands. Call our Towes Insurance Brokers Team on 0800 230 235.

David Bradbury