Getting the correct Sum Insured is essential when setting up your home insurance. If anything should happen to your home, it is important to get your Sum Insured right as it will determine how much is paid out to rebuild your home.
Updating your Sum Inured at least every three years to at least match your estimated rebuild cost will ensure you qualify for the SumExtra benefit, which will give you added protection just in case the costs to re-build your home have changed since the last valuation.
Sum Insured is the dollar value that you choose to insure your home for and reflects the most that will be paid out to rebuild your home. It is important that your Sum Insured reflects the estimated cost of rebuilding your home from scratch as well as considering demolition, debris removal costs and fees.
Get advice from a suitably qualified professional, such as a registered quantity surveyor or registered valuer. Ensure it is a written valuation for insurance purposes and does not include any market value component or land value. In short, it should only reflect the re-build value of your home.
It is important that your Sum Insured reflects the estimated cost to rebuild your home as this is the most that will be paid out to you. If you have opted for the AMP Homeplan product your Sum Insured should exclude GST as GST will be paid in addition to the Sum Insured. If you have opted for the AMP Everyday Plus or Everyday product, then your Sum Insured should include GST.
When thinking about your Sum Insured it is important to consider demolition, debris removal costs and fees and make sure these are sufficient for your particular home’s situation.
Reviewing your Sum Insured every couple of years is important. An annual indexation is applied to the Sum Insured on renewal every year for inflation, however you shouldn’t rely on this as an adequate reflection of any increase in costs. That's why we think it's a good idea to regularly review your Sum Insured and your home’s rebuild cost estimate as you may need to factor in any renovations, extensions or other changes such as changes in building costs and consumer price indexing.
SumExtra makes your home insurance cover go further. It provides extra financial help at claim time if costs to rebuild your home is more than your Sum Insured.
SumExtra gives you full repair or replacement if the loss to your home is caused by a fire or other non-natural disaster event. With AMP SumExtra, you’re covered for the full cost of repair or replacement of your home, even if the cost exceeds your Sum Insured.
If your home is damaged or destroyed in a natural disaster, or fire caused by natural disaster, and your Sum Insured isn’t enough to pay for the repair or rebuild, with SumExtra you’ll receive up to 10% extra cover.
With AMP, SumExtra is automatically included in our EveryDay Plus policy however with our Everyday policy it is an optional extra benefit that you will need to opt into.
To qualify for SumExtra you need to make sure that the dollar value your home is insured for (also known as Sum Insured) is at least the value of your home’s rebuild cost estimate. In short, the amount shown in the valuation. It is also important to note that the valuation needs to be three years old or less at the time of loss or damage for you to qualify for the SumExtra benefit.
A written rebuild cost estimate needs to be obtained from either:
the independent, free online Cordell Sum Sure Calculator; or
a suitably qualified professional, such as a registered quantity surveyor or registered valuer.
Ensure that your rebuild cost estimate is less than three years old at the time your Sum Insured was most recently agreed. Keep a copy of your estimate in a safe place to ensure it can be produced at claim time. And remember, if you extend or improve your home, you’ll need to revise your Sum Insured.
AMP Home, Contents, Car and Landlord insurance are issued and underwritten by Vero Insurance New Zealand Limited. The above is only a summary of some of the cover provided and is for information purposes only. It is important to note that limits, excesses, terms and conditions and exclusions apply to the cover outlined. Please refer to the policy document for details of the cover. The provision of cover is subject to the underwriting criteria that apply at the time.