After 100,000 plus sum insurance valuations, we realise there are still many property owners in New Zealand who are underinsured and are not aware.
Our vision for Construction Cost Consultants is to ensure that no matter what happens to your property in the event of a crisis, you are fully and accurately protected.
Like all insurances, accuracy, where possible, is often left to the policyholder, not the insurance company. This puts the onus on you to be aware of what you are protecting, why and if the policy you own is accurate.
This doesn’t mean you have to be an expert in building or insurance. Still, you must understand how to obtain that critical number to rebuild based on what you have now adjusted for inflation and material compliance changes.
For many, you will be directed to an online sum sure calculator such as the Cordell Calculator, which is fast and easy for any property owner to use. However, in this instance, the speed of information does not provide accuracy.
So, what is the Cordell Calculator?
The Cordell Calculator or Sum Sure calculator uses information obtained from a variety of third-party sources and the information you provide or confirm and analyses them against construction industry data to calculate an estimated reconstruction cost of your property.
The information and data used by the Sum Sure calculator may not reflect the specific details of your property and may not be complete, current or accurate. The estimated reconstruction cost may not reflect the actual cost of rebuilding your home.
It is the last sentence that we want to bring your attention too; ‘cost may not reflect the actual cost to rebuild your home.’ And this is where we know that kiwi property owners get caught out. Some calculators can be out by around 50%. On a $1m property, that’s a lot of extra money you must find in the case of a loss of that property.
You are insured; you might say yes. But remember, this process is about accuracy. Insurance companies are sticklers for detail, and without that detail, you risk not having your claim fully paid out. This, in turn, puts you in an awkward position with your lender because they require the same accuracy of the rebuild valuation of the property, NOT the market valuation which we will cover next.
What does that mean for the Cordell Calculator? It is a tool to give you a quick indication of your rebuild valuation, but if you want absolute accuracy to align with your insurance company and funding provider, maximising the services of a quantity surveyor is your best option.
Can you use a property valuer for sum insured?
No. A property valuer is looking at the ‘market value’ of the property, not what it will cost to rebuild. The price someone is prepared to pay for your property is not the same as what it will cost to rebuild, and that’s a critical distinction when considering the tools or services you use when sourcing your rebuild valuation. Property valuers are not trained in construction methods or aware of up-to-date price increases.
What is the best way to ensure my rebuild valuation is accurate and provides confidence if something should happen?
In short your rebuild valuation should be undertaken by a qualified quantity surveyor that has experience, specifically in the insurance industry.
Over the past 10 years Construction Cost Consultants have amassed over 100,000 valuations on New Zealand properties and their specific building components.
Driven by a world-first, proprietary technology, we maximise our ability to access global product specs and costing data with our team’s highly experienced quantity surveyors.
Why this mix? Because the online sum sure calculators, as outlined above, do not know your home, and they don’t know the improvements you have made, such as the retaining wall or new kitchen. Our team will come out and visually inspect your property and accurately capture all the finer details that can be missed regarding generic tools.
The most important part of the process is that we can ensure that the rebuild valuation is based on modern materials and building compliance specs, which means you would get your home back, only better.
Our technology is heavily supported by the biggest insurance companies in New Zealand and worldwide so that their customers, you, are fully protected should the worst happen.
Don’t risk your most valuable asset with a quick online tool to ensure an accurate rebuild valuation. Use a highly experienced, specialist team with technology backing to give you the certainty you deserve.