Taking reasonable steps to establish your sum insured amount includes using tools such as the Cordell Sum Sure Calculator or getting a qualified professional to calculate an accurate rebuild cost for your home or rental property. Your sum insured should include demolition and removal of debris costs, as well as any features which may not be included in the Cordell Sum Sure Calculator. It's important to note that using the purchase price of your home, a rates valuation, government valuation or the QV of your home won't give you an accurate sum insured amount to work with.
To take reasonable steps in establishing the accurate size of your home, we would suggest using either a LIM report or other council authorised documents. Guessing the size of your home, or using a measuring tape to try and estimate this yourself likely won't provide you with accurate information about your home.
What happens if I don't take 'reasonable steps'?
If you haven't taken reasonable steps when setting up your cover with us, and at claim time we find the size of your home is incorrect and/or it's significantly under insured, we'll settle your claim using sum insured cover. This means that we'll only pay up to the sum insured listed on your policy schedule in the event of a claim.
You can find this information in your policy document, under the section 'How we will settle your claim'.