If I want to buy a new policy?
If you are taking out a new policy with AA Insurance, you'll need to provide a Sum Insured.
There are some simple ways that you can get help with determining the Sum Insured. One way is to use an online building calculator, such as the Cordell Online Calculator.
Cordell is an independent company that provides building replacement cost calculators that have been in use overseas for several years. Cordell has created a New Zealand version of its building calculator.
The Cordell Online Calculator uses typical building replacement costs derived from Cordell's industry research to provide an estimated building replacement cost. The Cordell Online Calculator does not take into account every feature of a home - it only takes into account the features and information that it asks you, the customer, to input.
Cordell will only provide an estimate based on typical building replacement costs and the cost of replacing a home will depend on the specific details of the home.
You are responsible for deciding whether the estimate provided by the Cordell Online Calculator is right for you to use it as the Sum Insured for your home.
The Cordell Online Calculator does not provide advice. If you want advice on the cost of replacing your home you should contact a builder, architect, quantity surveyor or other valuation expert.
If I already have a Home Insurance policy?
If you're an existing AA Insurance customer, it's essential that you regularly review and revise your Sum Insured to reflect any significant improvements, extensions, or alterations you've made, such as building a deck, installing a swimming pool, or adding a new room. If you don't, you could find yourself over or under-insured at claim time.
A good time to review your Sum Insured figure, and make sure it will sufficiently cover the rebuild of your home, is when your policy comes up for renewal each year. While your policy will include an adjustment for inflation it won't include any changes, additions or omissions to your property.