Home sum insured

What is my home's sum insured?

Most New Zealand insurers require homes to be insured for a specified amount so they know the maximum sum they may need to pay to rebuild a home if it’s destroyed or damaged beyond repair. This amount is known as the ‘sum insured’.

Understanding your home’s sum insured

Your sum insured is the estimated cost to completely rebuild your home to its current size and quality. It does not include land value and is not based on your home’s market value or purchase price.

Getting this amount right is important. If your sum insured is too low, you might only be able to rebuild a smaller or lower-quality version of your home—or you may have to cover some of the rebuild costs yourself.

Your home’s sum insured needs to include costs such as labour, materials, demolition and debris removal, council consents and professional fees associated with rebuilding and repairing the home. You may also need to specify certain features—like retaining walls, swimming pools, tennis courts, or bridges—depending on your policy limits.

Calculating your home's sum insured

You are responsible for setting the sum insured for your home insurance policy. 

The Cordell Sum Sure calculator is a great starting point if you want to estimate the sum insured for your home. This is a free, easy-to-use, independent online tool that guides you through the estimation process. 

For a more accurate sum insured, you can get a rebuild valuation from a registered valuer or quantity surveyor, though this does come with a cost.

Review your sum insured regularly—especially when renewing your policy or after making improvements to your home—to make sure it still reflects the true cost to rebuild.