With the change from ‘area replacement’ to ‘sum insured’ cover for house insurance, many people are struggling to determine an appropriate amount of insurance to have in place on their home. So, is the default amount specified by the insurance company enough? Maybe, depending on your individual situation. The online calculator at http://bit.ly/CoreAdviceCordell is a useful tool but is best suited to standard homes built to average standards.
However, if your home has unique features such as multiple ceiling heights, non-standard construction or expensive fixtures and fittings, then a registered valuation may be money well spent. If your home is owned by a family trust, the Trustees have a special responsibility to the beneficiaries and a registered valuation may also assist Trustees in setting an appropriate amount of insurance cover.
Remember, the sum insured amount should represent the total cost of rebuilding your home including swimming pools, fences, garages, tennis courts, sheds, retaining walls and driveways as well as architect and design fees, demolition, professional fees and costs associated with compliance.
While we can’t provide advice on how much cover you should have, we can assist you with the process of working out your sum insured amount. Please contact us to arrange a meeting if you have any questions about this important change to house insurance cover.