There has been a lot of commotion on the radio and the TV regarding the changes occurring within the domestic insurance market. But what are these changes? And how does it affect you?
Basically, the change ensures that insurers know the maximum amount they would have to pay back in the case of a rebuild. Home insurance policies were based on ‘replacement value’ by floor area (square meters) will now be based on the maximum amount it would cost to rebuild your home, to the same size and quality. This is known as the Total Sum Insured.
You as the customer are now in control of setting your own total sum insured for your home replacement policy. Insurers have passed on the responsibility to you to ensure the rebuild cost is always kept up to date. If any renovations extensions, or other changes are made to your home, you will need to let your insurer know.
There are a few ways of figuring out the rebuild cost of your home.
Speak to one of the ILG staff and they can work through a few questions with you. Contact a valuer, quantity surveyor or other qualified professionals to assist you in setting an appropriate rebuild cost. We can put you in contact with a trusted valuer if need be. Use one of the online tool calculators, either the simple, or the more comprehensive one. It doesn't take more than 20 minutes to complete the comprehensive one.
Check the sum insured on your policy schedule.
Use the online calculators to estimate the likely cost to rebuild your house. Contact us as your broker and let us know the sum insured.
We can also go through this process with you too.
Some Frequently Asked Questions:
Click the link to view a PDF with some questions that are very easily answered and hopefully help you out. If they don’t please feel free to give us a call and we can talk through your query.