Sum insured – Calculating your sum insured figure

Using a specific calculator is an easy way to get a better understanding of the rebuild cost of your home.  It does require a fair bit of information and some you might not know off the top of your head.  So we’ve put together a list of things you will need to consider and find out before you start.

Completion time.  It can take a fair amount of time depending on your knowledge of your property.  The Cordell’s calculator for example says around 10 minutes so give yourself adequate time to sit down and go through it.

You can’t save.  Another little thing to remember is you can’t always save the information you’ve entered as you go.  It’s best to make sure you have the information you need beforehand and have the time to fill it out in one go.

Style of home.  Although many will think their home is just a “normal” one, if you know what type or age this will help.

Floor area.  To get the most accurate calculation you will need to know the floor area of your home in square metres, including the approximate size of your bathrooms.  You can get this through various means including your local council, through one of our Rating Valuation reports, your house plans or if you are confident enough by doing it the old fashioned way and measuring it.  Remember also that they require your figure in metres squared.

Make sure you check whether the calculation needs to include the measurement of decks, as some calculators ask for this separately.

Building and construction materials.  Some of these details may be obvious to some, but the calculator asks you for the materials of your ground floor, walls, and roof.   Either make note when you are at home or if you need help a builder, valuer, architect or quantity surveyor may be able to tell you.

Ceiling height.  You will need to know the most common stud height of your home’s ceilings.  Take a look around your house and if you are confident you can measure it yourself.  Otherwise, seek some help.

Driveway dimensions.  You will need to know both the width and length of your driveway.

Swimming pool.  If you have a swimming pool, you need to know whether it is obviously in the ground or above ground but also what it is made of, i.e. concrete, fibreglass or vinyl.  Fencing around the pool may also be a factor you need to think about.

As well as these bits, there are more property characteristics that you might not completely understand but fortunately there are some handy little question marks throughout the calculator that will give you extra information on each of the questions and what they require.

It’s important to remember that this calculator will give you an estimate only so if you need more certainty or have more unusual characteristics or special features, such as a particular wood floor or an outside structure in your garden, that may require separate or extra cover getting more help may pay off.

Here are a few calculators being used by insurance companies in New Zealand:

AMI / State / NZI / IAG: www.need2know.org.nz

Tower - http://www.tower.co.nz/insurance/house/house-changes/what-do-you-need-to-do/how-to-calculate-your-sum-insured

AA - http://www.aainsurance.co.nz/home-insurance

Vero – contact your broker.

Lumley - http://www.lumley.co.nz/home/suminsured

PropertyIQ, the market leading property data and analytics company, is working with major insurers to provide them with latest, most comprehensive property data and insight whilst they transition to sum insured policies and going forward.