The Sum Insured is the maximum amount payable, after any applicable excess, to rebuild your home after a total loss (like if it burnt down). You should review your sum insured each year to check that it’s accurate. It needs to take into account rising building costs, inflation and any changes to your home to ensure you aren’t caught short.
It’s your job to ensure the Sum Insured on your home insurance is sufficient, so you don’t underinsure your home. But it can be tricky to understand. So, we’ve put together some information to help you. Read on to learn what the Sum Insured is – and why it’s so important to get right.
Your Total Sum Insured = Your Home Sum Insured + the sum insured for any Special Features you buy cover for.
Your Sum Insured should cover the full cost of rebuilding your home to its equivalent size and quality. It needs to include demolition, building consents and other fees. If you set your Sum Insured amount too low, you might:
When working out your Sum Insured, you’ll need to consider all of these things:
Remember to include any Recreational Features (such as swimming pools or tennis courts), Retaining Walls or Special Features (like a bridge or cable car) that would increase the rebuild cost of your home. You might need to add extra cover for Recreational Features or Retaining Walls if their cost is more than the policy limit. If you have any Special Features, they aren’t automatically covered so please tell us what they are and what the cost is. Make sure you check your Policy Wording for everything you need to consider in your Sum Insured. State home policy
Want to be confident your sum insured is accurate? Get a professional in to estimate your rebuild cost. This is strongly recommended for large (>500sqm), high value (>$2m) or architecturally designed homes.
QV and Construction Cost Consultants can provide residential valuations at a competitive price for State customers. Hit them up here:
Alternatively try other registered professionals, such as:
This calculator provides an estimate Sum Insured for your home but the final decision is yours, so if you think your amount is incorrect, you can change it. This is general information and is not a recommendation, opinion or guidance. If you would like a recommendation please contact a registered valuer or quantity surveyor. This calculator information does not provide any advice or opinion on the extent or adequacy of the cover provided by Sum Insured insurance. This information is not personalised financial advice and does not take into account your particular situation. You must make your own decision on the Sum Insured that is appropriate for your circumstances.
The Cordell Sum Sure calculator is an independent tool. State doesn’t have access to the information you enter, or access to the estimate that it produces, so if you’d like to adjust your home’s Sum Insured, or add additional cover for retaining walls, Recreational Features or Special Features, you’ll need to contact us. It’s your responsibility to ensure that your Sum Insured is adequate.