Seal the deal with the right home insurance

23 February 2018

A house is probably the biggest purchase you’ll ever make and it’s so much more than just four walls and a roof. Home is, after all where the heart is.  

Protecting the things that matter to you is what AMP is all about. When buying your first home we’re here to help with dotting the ‘i's’ in insurance and making sure your property is properly insured on settlement.

Home insurance gives you peace of mind that you’ll be able to repair or rebuild your home in the event of fire, earthquake or other bad luck or disasters. Read on for all you need to know about setting up the insurance you need to protect your most valuable possession.

Getting the numbers right

Most Kiwis underestimate how much they need to insure their homes for - by as much as 28 percent. For example, on an average $500,000 home, being underinsured would mean you could be approximately $140,000 out of pocket if you needed to rebuild.

Although there are online tools and information to help guide you, ultimately it’s up to you, the homeowner, to determine what your house is worth.

Sometimes it can be a hard to access the right information, or the information available is not specific to your home, or is wrong.

Make sure you understand the GST position of the insurer. Some insurers are GST inclusive for the sum insured and others are GST exclusive (or in other words they will pay an additional 15% on top of your sum insured). AMP can offer cover for your house on a GST exclusive or GST inclusive basis. Talk to your Adviser or Broker to get the right solution for you.

The good news: it can be relatively inexpensive to increase your insurance cover. For example, if you insured your house for a value of $850,000 and increased it by an additional $100,000 to $950,000 that increase would cost about $3 per fortnight (if you live in Auckland).

Talk to your Adviser
or call us on

0800 267 263

Monday to Friday
8:00am - 6:00pm

What is Sum Insured?

‘Sum Insured’ may sound complicated, but it’s actually quite simple - it means that your home insurance covers you for a fixed amount. It’s up to you to determine how much it would cost to rebuild your home in the event of total loss or disaster.

At AMP, we go one step further to ensure you are not left in the lurch if your home is damaged and you need to claim.  It’s a little gem we call SumExtra.

The SumExtra feature can provide a top-up if the cost of rebuilding your home is more than your sum insured (as long as the required criteria are met).

How to work out the value of your home

If you aren’t keen to leave your home insurance level to a 'best guess' scenario, there are a couple of ways to assess the value of your home with AMP:

  1. Get a re-build estimate for your home using an online rebuild calculator
  2. Engage a registered valuer, registered quantity surveyor or a building practitioner holding an appropriate trade licence for an estimate to rebuild your home. 

If you’re not quite sure whether you’ve got the right Sum Insured amount, a chat with an Adviser or Broker can guide you in the right direction. Find an Adviser or Broker here.

Factors to consider

Keep in mind that if you live in an area that’s difficult to access or outside of a major town or city, rebuilding will probably cost more due to additional labour and building requirements.

There’s also GST on materials and building costs – 15% could be a fair chunk in the grand scheme of things. Some insurance policies offer a Sum Insured that is GST inclusive such as AMP Everyday Home Insurance. Others offer a Sum Insured that is GST exclusive such as AMP Homeplan Insurance - this means that you get paid the sum insured plus GST in the event of a total loss.

Make sure your biggest asset is covered. Get a quote and buy AMP home insurance online.

Important information

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The content on the First Home Hub is for information only. The information is of a general nature and does not constitute personalised advice. To the extent that any of the above content constitutes financial advice, it is class advice only. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. While care has been taken to supply information on this website that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission.

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.

A disclosure statement is also available from your Adviser, on request and free of charge.