Insurance companies have recently moved to a ‘sum insured’ basis for replacement cover on residential properties. This means, instead of your home insurance covering you for an unspecified "replacement cost", when your policy next renews you will be required to specify a maximum value to which you are insured. It's vital that you get this right!
This change requires the property owner to determine the appropriate insurance cover for their property. Few owners have the tools or knowledge to undertake this task adequately themselves.
A registered valuer is a trusted, independent property professional who can provide an impartial professional report on the costs to replace the improvements on your property in the event of a fire or other disaster.
An insurance certificate, by a Registered Valuer, includes the cost to replace your home with ‘modern equivalent’ materials, inclusive of all fixtures and fittings, as well as any improvements you would replace (fences, paths, driveways, pools, septic/water tanks, etc). They will also make allowances for demolition costs, professional fees (architects, engineers etc) and inflation increases until the rebuild occurs.
Most insurance companies are providing their clients with access to free online calculators. These calculators utilise general property and building data which may correlate to your property, as well as requiring accurate measurements not just of floor area, but of ground slope and other environmental factors.
A valuation from a registered valuer will remove the guesswork and the risk out of the calculation. The valuer will provide you with a professional report which provides the required answers. A report from a registered valuer is independent, professional, objective, and specific.