Your sum insured is the total dollar amount that is needed to replace your home and/or all of your contents, and is the maximum amount that can be paid to you if you need to claim.
The premium you pay can be influenced by a range of factors, including your location, the materials used to construct your home, your sum insured, when your home was built, the number and types of claims we receive and more.
It’s important to note that for most claims, your full sum insured isn’t paid because your entire home isn’t damaged and doesn’t need to be completely rebuilt. This means, your sum insured doesn’t affect your premium as much as you may think.
For example, say the downstairs area of your home has flooded. We would pay to repair the damaged area of your home, but we would not pay for areas of your home that have not been damaged, like the upstairs.
Accordingly, a 10% reduction or increase in your sum insured does not equate to an equivalent change in your premium.