House Rebuild Valuation for Insurance

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PaulBags

809 posts

Ultimate Geek
Inactive user

#879072 15-Aug-2013 19:25

StarBlazer: What happens if I insure at the lowest amount - which happens to be the estimate from AMI?
They send round they assessor, contact a building company and come back with a figure. If that figure is more than the sum insured then I have the option to either put my own money on the table or have the house built to budget - which could be either a smaller property or with less expensive materials/features. If I were to attempt to take insurance on an amount which is grossly under the estimate then they will refuse to issue a policy on the property.

Except that if EQC is involved their assessor won't mean a thing, and you'll have to let an aussie ex-cop determine the damage and replacement cost for your house. At that point, well, good luck getting your house re-piled for $7000.
Unless you work for EQC, in which case you'll get phone calls about paying you out while your in the middle of an assessment.

Remember, when EQC gets involved your insurer just sits back and twiddles their thumbs. You paid a premium over the decades plus an EQC levy, just so that when a disaster happens your insurer can bend you over for the government.

Elpie

1304 posts

Uber Geek

#879073 15-Aug-2013 19:25

Geektastic:
Do note that if you want a policy where they pay out the full loss without the limit (ie the way it used to be pre the recent changes) both FMG and their medical equivalent will issue policies on that basis. Neither requires you to be a farmer or a doctor.

Are you sure? Their new policy that comes into effect shortly seems to indicate otherwise. http://www.fmg.co.nz/cms_show_download.php?id=366

Geektastic

17943 posts

Uber Geek

Trusted

Lifetime subscriber

#879191 15-Aug-2013 23:28

Elpie:
Geektastic:
Do note that if you want a policy where they pay out the full loss without the limit (ie the way it used to be pre the recent changes) both FMG and their medical equivalent will issue policies on that basis. Neither requires you to be a farmer or a doctor.

Are you sure? Their new policy that comes into effect shortly seems to indicate otherwise. http://www.fmg.co.nz/cms_show_download.php?id=366

Yep, pretty sure. This was in the news just last week:

"However, the Medical Assurance Society (MAS), which provides financial services primarily to highly paid medical professionals, is continuing to write replacement cover for homes, a decision it took after the events in Christchurch revealed how hard it would be for members to work out a sum insured value for their homes.Farmers Mutual Group (FMG) is also planning to continue providing replacement cover policies to its customer base which is heavily stocked with farmers and rural people."FMG has always offered clients the choice of full replacement or nominated replacement house and farm buildings policies and continues to offer both - with no plans to change," it said."

I expect you have to actually tell them that is the basis on which you want the insurance written but it seems clear to me that they intend to offer it. I read the FMG policy and in fact it allows for either approach to cost of replacement with the relevant one in each case being specified on the certificate of insurance.

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