Insurance companies have moved to a ‘sum insured’ basis for replacement cover on residential properties since the Christchurch earthquake. Even more important now since the recent Kaikoura quake affecting up to Wellington and to a minor extent over NZ with people in Auckland reporting feeling shakes. This means, instead of your home insurance covering you for an unspecified “replacement cost”, when your policy next renews you will be required to specify amaximum value to which you are insured. It’s vital that you get this right!
This change requires the property owner to determine the appropriate insurance cover for their property. Few owners have the tools or knowledge to undertake this task adequately themselves.
Why use a qualified professional?
A qualified inspector assessing your home is a trusted, independent property professional who can provide an impartial professional report on the costs to replace the improvements on your property in the event of a an unforeseen event.
An Insurance Certificate, by a Chartered Professional, includes the cost to replace your home with ‘modern equivalent’ materials, inclusive of all fixtures and fittings, as well as any improvements you would replace (fences, paths, driveways, pools, septic/water tanks, etc). They will also make allowances for demolition costs, professional fees (architects, engineers etc) and inflation increases until the rebuild occurs.
Can I just use an online calculator?
Most insurance companies are providing their clients with access to free online calculators. These calculators utilize general property and building data which may correlate to your property, as well as requiring accurate measurements not just of floor area, but of ground slope and other environmental factors.
A valuation from a Chartered Professional Consultant will remove the guesswork and the risk out of the calculation. The valuer will provide you with a professional report which provides the required answers. A report from a Valuer is independent, professional, objective, and specific.
Andy McIntyre 021-901190, E: firstname.lastname@example.org
For an independent report from a Charted Insurance Assessor give us a ring on the phone number above or email us through this link.