Insurance valuation rates?

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › Insurance valuation rates?

rhy7s

673 posts

Ultimate Geek
+1 received by user: 147

#303714 3-Mar-2023 09:30

Our last valuation in 2019 was $800 +GST, the next one has been quoted at $1400 +GST. Is this the type of increases others are seeing? A quote from another valuer was even higher as they would have to start from scratch.

Handsomedan

7769 posts

Uber Geek
+1 received by user: 7402

ID Verified

Trusted

Subscriber

#3044194 3-Mar-2023 10:09

You've lost me.

Do you mean a valuation of your property to establish what it should be insured for, or a contents valuation, for the same purpose?

Or do you mean something else entirely?

Handsome Dan Has Spoken.
Handsome Dan needs to stop adding three dots to every sentence...

Handsome Dan does not currently have a side hustle as the mascot for Yale

*Gladly accepting donations...

duckDecoy

946 posts

Ultimate Geek
+1 received by user: 432

Subscriber

#3044231 3-Mar-2023 11:20

We didn't bother with a valuation, like you we were quoted at about $1500.

I simply insured it for something like $500,000 (or was it even more?) above what I thought it was worth based on similar properties near by, and the annual increase in premium for the new definitely over insured figure was something like $80. That's well short of paying $1500 ever 3 or so years.

The insurance made me 'speak to the manager' a few times to ensure that I understood they only had to fix my house to the current standard and that over insuring its value won't mean we get paid that out that figure in the event of a loss, and once convinced I understood they simply whacked the policy through. I pay them an additional premium they will never have to pay out on, and I pay way less than a valuation would cost - win win I think.

Linux

12173 posts

Uber Geek
+1 received by user: 8469

Trusted

Lifetime subscriber

#3044235 3-Mar-2023 11:32

This post you need a crystal ball

Valuation of what? $800 + gst for a dolls house maybe?

rhy7s

673 posts

Ultimate Geek
+1 received by user: 147

#3044327 3-Mar-2023 14:28

It's for building valuation, we can't afford to have contents insurance any more. The only change would be adding an approximately 10 square metre shower building to the existing valuation, and checking everything else is still here basically.

duckDecoy

946 posts

Ultimate Geek
+1 received by user: 432

Subscriber

#3044329 3-Mar-2023 14:35

rhy7s:

It's for building valuation, we can't afford to have contents insurance any more. The only change would be adding an approximately 10 square metre shower building to the existing valuation, and checking everything else is still here basically.

Does your insurance require you to have had a valuation done and/or the buildings specified and documented, or is it just to give you an idea of the replacement value so you can insure it for an appropriate amount?

shk292

2915 posts

Uber Geek
+1 received by user: 2040

Lifetime subscriber

#3044332 3-Mar-2023 14:54

I'd change insurer if I was expected to go through that process. I'm currently with Tower and they have no such requirement, you just go through a web questionnaire to get an approximate value for your house.

Remember, insurance is a competitive marketplace

HP

Shop now for HP laptops and other devices (affiliate link).

Linux

12173 posts

Uber Geek
+1 received by user: 8469

Trusted

Lifetime subscriber

#3044333 3-Mar-2023 14:55

So the value of this building is 800+ GST or this the cost of the premium?

I am so confused

kiwi_64

276 posts

Ultimate Geek
+1 received by user: 142

Subscriber

#3044335 3-Mar-2023 15:02

Linux: So the value of this building is 800+ GST or this the cost of the premium?

I am so confused

My take is that the Insurer requires a valuation to set Insured/Premium rates

The cost of that valuation has risen from $800+ GST to $1400 +GST and the OP is querying this cost (for a valuation)

PolicyGuy

1820 posts

Uber Geek
+1 received by user: 1769

ID Verified

Lifetime subscriber

#3044344 3-Mar-2023 16:00

Most house structure insurance companies appear to use the online Cordell Sum Sure calculator. It's free, and it's here: https://sumsure.corelogic.co.nz/#/products/8/profiles/219

Cordell Sum Sure estimates the reconstruction cost of your home using information supplied by Cordell - Australia and New Zealand’s leading provider of building cost information. Cordell is a CoreLogic business. By providing information about your home, the calculator will provide an estimated reconstruction cost, including an allowance for professional fees, demolition, removal of debris and GST.

If my insurance provider wanted me to get a professional valuation every three years, I'd find a different provider.

Goosey

3014 posts

Uber Geek
+1 received by user: 867

Subscriber

#3046000 5-Mar-2023 12:30

Sounds like this isnt a valuation for a house...

Are you dealing direct with an insurer or a broker?

Id suggest a broker.... is it a business?

Maybe Crombie Lockwood?

(ive seen their services used for a community group property, cost wasnt too bad for what we got covered for / circumstances)

mattwnz

20515 posts

Uber Geek
+1 received by user: 4795

#3046027 5-Mar-2023 14:24

shk292:

I'd change insurer if I was expected to go through that process. I'm currently with Tower and they have no such requirement, you just go through a web questionnaire to get an approximate value for your house.

Remember, insurance is a competitive marketplace

I used Trademe insurance which I understand resells Tower and it worked out cheaper. YMMV

Geekzone

Want to support Geekzone and browse the site without the ads? Subscribe to Geekzone now (monthly, annual and lifetime options).

mattwnz

20515 posts

Uber Geek
+1 received by user: 4795

#3046029 5-Mar-2023 14:30

rhy7s:

Our last valuation in 2019 was $800 +GST, the next one has been quoted at $1400 +GST. Is this the type of increases others are seeing? A quote from another valuer was even higher as they would have to start from scratch.

Who is your insurer? Most don't seem to require a valuation. Also why is the price so high anyway when they could use base it off the previous one. That is a huge amount of money just for a repeat of a insurance valuation. My parents had an insurance valuation done years ago and the rebuilt price was so high, I think it was about double the price they ended up selling it for.

I have also found the rebuilt price on a new house using online calculators is almost the price of that house including the land.

Senecio

2851 posts

Uber Geek
+1 received by user: 3159

ID Verified

Lifetime subscriber

#3046056 5-Mar-2023 16:22

I think the OP is confusing valuation with premium.

rhy7s

673 posts

Ultimate Geek
+1 received by user: 147

#3046163 6-Mar-2023 09:01

It's the valuation, not the premium. Our broker is Frank Risk Management, so the insurer changes occasionally. Thanks @PolicyGuy for the Sum Sure link and other posters for their suggested insurers.