Understanding your sum insured
Knowing the total cost to rebuild your home can be difficult. So, our friends at NZI* have delved into the details to provide you information on what your Sum Insured is, and how to calculate it.
How home sum insured applies to you
You are new to NZPA
Welcome! Let’s get your Sum Insured figured out for your home policy. The Cordell Sum Sure calculator is a great place to start to get an estimate. Once you’ve crunched the numbers, let us know what you’d like the Sum Insured to be so we can provide you with a quote.
You are an existing NZPA customer
Thanks for sticking with NZPA and trusting us to take care of your home. It’s a good idea to review your Sum Insured at least every year when your policy comes up for renewal. We’ll adjust your Sum Insured at renewal for changes in building costs but if you are making changes or additions to your home you should contact us immediately to ensure this is covered.
Once you’ve used the Cordell Sum Sure calculator or got a professional in to re-evaluate your Sum Insured, get in touch and we’ll set your new total amount.
You've just bought or built a house
This is such an exciting time. We’re so pleased you’ve chosen us to insure your newest asset. Use the Cordell Sum Sure calculator or get a professional in to assess your new property. When you have an estimate you’re happy with, get in touch for a quote.
If you have any questions relating to your insurance quote or calculating your Sum Insured, contact our insurances team on [email protected] or call 0800 500 122.
*Police Fire & General Insurance: Exclusively for PWF members and their families. Arranged by PWF General Insurances Limited and underwritten by NZI, a business division of IAG New Zealand
What does ‘sum insured’ mean?
When you first take out Home Insurance with NZPA, we’ll ask you to specify the total amount you would need to rebuild your home to the same quality – this is your Sum Insured. Your Sum Insured is made up of your Home Sum Insured, and the Sum Insured for any Special Features you buy cover for. It’s the maximum amount to be paid, after any applicable excess, if your house was wiped out by a natural disaster or suffered significant damage from major events like flooding or fire. It not only needs to cover materials and labour, but other costs to rebuild your home like demolition, consents and other fees.
What Sum Insured Is:
- The estimated maximum amount it would cost to repair or rebuild your home if it were destroyed, including Recreational Features, Retaining Walls, and Special Features.
- An amount that covers materials and labour as well as costs like demolition, consents and other fees.
- An amount you need to choose.
What Sum Insured Isn't:
- It’s not the rateable value (RV) or capital value (CV) of your home.
- The market value or the price you paid for your home.
- It’s not the value of the land.
- It’s not automatically inclusive of Special Features (such as a bridge, jetty or cable car) on your property - you may need additional cover for these.
Calculating your Sum Insured
If your Sum Insured is too low, you may not be able to repair or rebuild your home to the same size and quality. You could also find yourself paying for some of the repairs or rebuild yourself. So, it’s important to get it right.
Use an online calculator
The Cordell Sum Sure calculator is free, easy-to-use and takes only a short time to complete. Find out more below.
Ask a professional
If you want more peace of mind that your sum insured is accurate, it may be useful for you to get a professional to assess your property. This is strongly recommended for large (>500sqm), high value (>$2m) or architecturally designed homes.
Construction Cost Consultants can provide residential valuations at a competitive price for NZPA customers.
Alternatively find other registered professionals such as:
Cordell Sum Sure Calculator
The good news is the Cordell Sum Sure calculator is easy to use and is a good place to start. It’s helpful in giving you an estimated figure of the cost to rebuild your home based on construction costs, allowances for professional fees, demolition, removal of debris and GST.