Changes to Fire and General InsuranceThe New Zealand Home Insurance industry is going through a significant change this year with a change from actual replacement cover to sum insured replacement cover. This means you are responsible for estimating the cost to rebuild your property when obtaining home insurance (Total Sum Insured). This is the maximum amount payable in the event of a major loss.
This change is being driven by offshore reinsurers and brings the New Zealand Home Insurance industry into line with the global insurance industry where sum insured cover is standard.
When are the changes occurring?
This change is currently being implemented in the insurance industry.
What should you do?
Ensure that you are aware of the requirements for obtaining sum insured home insurance well in advance of your insurance renewal date.
If you are purchasing a new property set up your insurance early to avoid any last minute rush or potential settlement delays.
What tools are available?
You can access useful tools on www.need2know.org.nz which may help you obtain a rebuild cost estimate. This tool is free to use.
An alternative method for determining a sum insured amount is to obtain a building or professional valuation. To find a valuer in your area refer to the Property Institute of New Zealand directory www.property.org.nz/Person?Action=List&DataFilter_id=130