With the price of building costs up by 21% in the last 12 months, what you insured your house for in the past might not be that accurate anymore.
Due to material shortages and costs going through the roof, building and renovating homes has become expensive. Unfortunately, homeowners have to insure their homes for more and that means higher premiums.
You will have provided a ‘sum insured’ when you took out your policy. This is the maximium amount that the insurance company will pay back if your home is damaged or destroyed.
If the sum isn’t equivalent to the cost to rebuild your home, then you will be left short. This could mean you are unable to rebuild the home to the same spec you had, or at worst, being left to organise the rebuild of your home yourself. Is the risk worth it?
This is where Cole Murray and our Domestic Insurance team can help you.
When insuring your home you have to consider more costs than the house itself. Increasing building costs, demolition, removal, and consents will play a part in having your home repaired or rebuilt, should something happen.
Climate change is here. No doubt about it. Excessive flooding, bush fires and extreme temperatures are causing havoc all over the world. New Zealand is no different.
We can talk over with you the details of your property and make suggestions on how best to come up with a sum insured that truly reflects your situation.
Here at Cole Murray we recommend:
- You pay attention to your house insurance (it is most likely your largest asset, after yourself)
- Check your ‘sum insured’ each year (are you insuring your home for what the current market recommends?)
- Talk to an Insurance Adviser to help find the best solution for you
