Home 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

The sum insured is based on how much it would cost to completely rebuild your home to existing size and quality. It does not include land value and is not based on market value or what you paid for the house.

It’s important you correctly calculate the amount needed to rebuild your home. If you set the sum too low, you may have to rebuild the home to a smaller size or lower quality. You may also have to pay for some of the rebuild costs yourself. 

Your home’s sum insured need to include costs such as labour, material, demolition and removal of debris, consents and fees associated with rebuilding and repairing the home. Some items such as retaining walls, swimming pools, tennis courts and bridges may also need to be specified depending on limits within your policy.

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. 

However, a rebuild valuation from a registered valuer or quantity surveyor provides a more accurate sum insured to rebuild your home in the event of a total loss. There are costs involved in engaging these professionals.

It’s important to regularly review your sum insured to check it’s accurate. A good time to do this is when you are renewing your policy or after you’ve made improvements to your home.

Help with home insurance

We’re here to help arrange the most appropriate cover for your home and possessions. And if a claim occurs we'll support you at every step.  Contact us to find out more.