Work out the sum insured for your house
With the upcoming move to sum insured cover, it's the responsibility of the homeowner to provide a sum insured amount for their house insurance. This figure needs to be sufficient to cover the total replacement costs for their particular home; otherwise there is a risk of being underinsured.
There are some simple things you can do to work out your sum insured amount, such as using an online calculator or engaging a professional.
Cordell house insurance calculator
To help you work out your sum insured amount, you can use this calculator provided by Cordell.
(If your ANZ Insurance is underwritten by
> House Insurance Calculator Guide [pdf 480KB]
The calculator is comprehensive but simple to use and will give you an estimate, based on the information you provide. It takes into account the likely rebuild costs of your home and other structures, as well as an allowance for additional costs such as professional fees and demolition.
Who is Cordell?
Cordell is a leading provider of building and construction information in Australia. Cordell has developed a New Zealand version of its popular online building calculator. Cordell's calculators are used extensively overseas and are updated on a quarterly basis to ensure all the information is up to date.
About the calculator.
The calculator is designed for the average New Zealand stand alone home. It may not be accurate for very large or high value homes and does not take into account special features or situations, such as the following:
- shared ownership of common property such as driveways and fencing
- the use of different construction materials within one building
- sites with difficult or restricted access
- joint commercial and residential properties
- bridges, culverts, permanent fords or dams
- wharves, piers, landings or jetties
- power generation or sewage treatment equipment.
When setting your sum insured, these (or similar) features and situations require consideration of what additional rebuild costs would be involved - it may be appropriate to engage the services of a professional to obtain an insurance valuation.
Any information you enter into the calculator is solely used for the purpose of working out an estimated rebuild cost. This information is not retained or passed on to your insurer.
Upon completion of the calculator you will have the option of printing a summary of your answers for your information.
This calculator will only provide an estimated rebuild cost, so you'll need to decide if the estimate is sufficient for your individual needs.
Engage a professional.
Depending on your circumstances, it may be more appropriate to use the services of a valuer, architect, builder or quantity surveyor to help work out a sum insured amount. They would need to provide an insurance valuation for rebuild purposes rather than a market valuation and ensure they take into account additional costs such as council fees and demolition costs. To locate a professional in your area, refer to your local directory.
Valuers are commonly used in the financial services industry, primarily to provide market valuations for mortgages. They are also trained to provide insurance valuations for rebuild purposes.
The Property Institute website provides more information on the use of a valuer to determine your sum insured.
Quantity Surveyors are engaged in the early stages of construction, and are used to estimate the full cost of a building project. They consider what needs to be done to get the section ready to be built on as well as the materials and the labour required to build the house.
A Quantity Surveyor can be engaged to provide you with an insurance valuation for rebuild purposes for your property. They will visit your home and later provide you with a reinstatement valuation based on their knowledge of market rates and costs as they apply to your home.
*The Cordell Online Calculator provides factual information as to the estimated rebuild cost of your home, based upon the details that you provide. This calculator provides an estimate only based on industry average building replacement costs and the true replacement cost of your home will vary depending on your circumstances. It does not constitute a recommendation or opinion in relation to taking out or replacing an insurance policy. It is not personalised financial advice. It does not take into account your particular financial situation or goals. The calculator is provided by Cordell and licensed for use on this website. Whilst every effort has been made to ensure that the information is accurate, neither ANZ, Cordell nor the underwriters of ANZ's house insurance products accept responsibility for the accuracy of any information in, or results derived from, or any reliance you place on, the calculator.