Have you checked your sum insured lately?

08 July 2022

We are all noticing the challenges affecting our housing market.  From labour shortages, supply issues, weather events, rising costs and increasing thefts.  These challenges are leading to many of ours clients increasing the sum insured on their properties.

We currently recommend all our clients to review their sum insured either by using a registered valuer or using the Cordell Calculator as a guide.  We recently had an example (below) that highlights the difference in values between an insurer, the Cordell Calculator to a registered valuation.

Insurer recommendation (200sqm x $3,500):

TOTAL (incl. GST) $805,000

Cordell Calculator recommendation:

Rebuild Cost $691,978
Professional Fees $45,240
Demolition $39,509
TOTAL (incl. GST) $893,247

Registered Valuation recommendation:

Elemental cost $1,252,708.95
Demolition $63,262.41
TOTAL (incl. GST) $1,315,971.36

As brokers, where possible, we will always recommend obtaining a valuation.  As you can see there is a significant difference in the sums to be insured.

It is also important to not only make sure your property is covered with the correct sum but the stock and materials inside it too.  We recently renewed the Business Insurance for Barlow Roofing Ltd based in Morrinsville.  In an effort to mitigate continuing material price increases over $150,000 worth of stock had been accumulated both on site and throughout various project sites across town.  Tim from Barlow Roofing Ltd worked with Linda, their Insurance Broker, to establish the value of their materials and stock on site and ensure they have the appropriate cover in place.

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