This topic comes up often, more than we would like. The real implications of the cost to rebuild your home only surfaces when you suffer a significant total loss. With recent house fire claims in our area we would like to once again highlight the importance of adequate insurance cover for your home.
The cost to rebuild is an important thing to understand. It is not the same as the market or rateable value. You need to take into account the current construction costs in New Zealand, any special features your property has and of course the removal of the old damaged home and clearing the site.
It is a common misconception that increasing the value of your home by $100,000 will result in dramatically higher insurance premiums. This is simply not the case, the premium may increase but not as high as many homeowners fear. It is something we can discuss with you before you make the final decision and we can always look at cover and excesses to keep premiums down.
Ultimately, how much you insure your home for, and the type of policy is your decision. We have guides and resources available to help you adequately calculate the cost to rebuild. You might be quite surprised to find that you too need to increase your sum insured.
Click here to estimate the rebuild cost of your home using the online calculator.