Once you have purchased a property, your insurance broker or company is likely to request a valuation. You, your mortgagee and the insurance company are relying on you to get that number right – that’s essential to this whole process to ensure you are all adequately covered should the worst happen and your new property is destroyed.

Some of the problems we see is confusion around purchase price, market values, and the need to have the correct sum insured on your property insurance policy.

Many customers don’t understand what is required because there’s too much information and not so much guidance.

Our experience has shown us that 85% of homes are underinsured, many by up to half. It was reported that after Cyclone Gabrielle there was $2.3 billion of underinsurance.

That’s a massive problem.

How should you calculate the correct sum insured?

Most of the time, property owners are accessing the services of registered valuers, who specialise in market values and when asked to provide an insurance valuation, they resort to broad calculations per square metre without taking into consideration the location, special features, architectural characteristics or any specifics that apply to your particular property.

To correctly establish the appropriate sum insured for your property – your Insurer needs a rebuild valuation. The insurance companies want to determine what it will cost to rebuild your home should it all go horribly wrong.

In our experience, we also see customers using online calculators, which are massively inaccurate. They’re using outdated information, and they won’t get the number required to fully protect your home in the event of a total loss.

This is where you need a quantity surveyor to provide the specific rebuild valuaton to establish the correct sum insured for your Home Insurance Policy. At Construction Cost Consultants, we have decades of construction experience to understand what it will take to reinstate your home.

How does a rebuild valuation work?

A building assessor will attend the premises to collect the specific property information and fully understand what makes your home special, whether it be the recently renovated Italian kitchen or the architecturally redesigned hallway. We’ll get all the details and include them in our report, which affects the reinstatement value and ultimately represents an accurate picture of a total rebuild.

Ensure your peace of mind by obtaining a Residential Rebuild Valuation and ensure your home has the correct sum insured on your Home Insurance Policy so you are not one of the 85% of homes in New Zealand that are underinsured.