Changes currently under way to many home insurance policies in New Zealand mean many homeowners will need to know more about their home when they renew their cover.
That's because all home insurance underwritten by IAG New Zealand Limited (IAG) that currently insures homes for their actual or full replacement cost will shift to insuring homes for up to a specified Sum Insured amount. To decide on a Sum Insured amount, many homeowners will need to understand more about their particular home.
For homeowners with such policies from State, AMI, Lantern, BNZ, ASB, The Co-operative Bank, or NZI policies provided through a broker such as Aon, Crombie Lockwood or a member of the Brokernet or Brokerweb network, that will mean change occurs when your home policy next renews (for some this may already have happened).
Moving to a Sum Insured
It's important customers understand what the changes mean and that you are comfortable that your home's Sum Insured reflects their home. This is because your home's Sum Insured amount will be the maximum amount available to repair or rebuild a home. If you set your Sum Insured too low, it may not be sufficient to meet the cost of a major future claim. Conversely, if you set your Sum Insured too high, you may be paying too much premium - because if it costs less than the Sum Insured amount to repair or rebuild your home, then only the actual cost will be covered.
