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  1. #1
    Off Limits...... beetle's Avatar
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    Question The new house insurance conundrum

    Ok just recently got the big letter in the mail saying that my house insurance is coming up for renewel. and a huge big pile of words in a book i didnt really comprehend... heaps still to read, or try to understand........ lots to think about and a few things to do?
    cos if i dont check it out, i could be insured for too little? or not a suitable package?

    has any one else already been and done their new eqc helpfully update house insurance packages? and if so what is the main things you did ? house valuation or a builder to come in? any hidden extras you added? i will need to add extensive fencing - retaining walls....

    but im a bit lost as to what i should be doing, and how much it will cost to get builder or valuation done now, but in the long run it may save me some $$ if life goes to custard here?
    any helpful insights would be great, words of wisdom, or even things that did go well or not go well in the world full of paper wars and builders jargon.



    thanks
    Im not trying to be difficult it just comes naturally.

  2. #2
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    Default Re: The new house insurance conundrum

    Join the club!

    Just got our house insurance renewal in from AMI with the same guff, perplexing is the house renewal was based on the previous process which increased the house value a little bit more than before as well as increasing the premium by $39 based on GV. However when I went on that website (i forget the name) to work out the value of our house it comes back with some over the top figure akin to living in Auckland and a property value of a jafas house.

    In reality that would hump our premium up by 3 times its value which no way can we afford! Also poses that other problem of if the house is a total loss/rebuild it would be more than the market value which we are lucky to reach GV here. Our house been on the market for nearly a year now with little interest much like most provincial towns that were featured on campbell live the other day. One the reasons I laugh when people say there is not enough affordable housing in NZ.

    The cost of getting a valuation or builders report in is going to land you with a bill for several hundred dollars than kind dont mention that part.

  3. #3
    Senior Member pctek's Avatar
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    Default Re: The new house insurance conundrum

    The Simple Guide:


    You now have to tell them how much the house (minus land) is worth. This is what they will pay if it burns down or something.

    There are calculators you can use.
    Or you can pay mega heaps to a valuer.

    If your house is fancy and non-standard you might want to bother.

    If it's bog standard, use the calculator and add 20% to the total it gives.
    wipe your paws.

  4. #4
    In a 1920s time warp Terry Porritt's Avatar
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    Default Re: The new house insurance conundrum

    I got a quantity surveyor in to assess the rebuild costs for our house, which is plain no bells or whistles, no retaining walls, weatherboard, colour steel roof, flat section etc. His estimate was close to, but a bit less than the Cordell calculator. He charged $400 with a report, which I thought was more than reasonable.

    The calculator is said to be ok for a plain 'bog standard' type house, but not good if you have bells and whistles, multilevel, retaining walls etc.

    There was something on Campbell Live a while ago with a women measuring up her house. It seemed to me she didn't know how to calculate areas, and she was getting all sorts of weird values out of the calculator....lesson: rubbish in...rubbish out.

  5. #5
    Moderator Jen's Avatar
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    Default Re: The new house insurance conundrum

    You have to be careful with the online calculators. In Auckland you need to aim for $2250-$2500/m2 in costs plus your fencing, driveway, decks, demolition, building consent fees...

    Pctek is right with adding ~20% to your calculated fee (for standard houses).

    The trouble is, if you over-insure just to be safe, you won't get that sum if it costs less to rebuild your house.

  6. #6
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    Default Re: The new house insurance conundrum

    We have friends living in Fendalton and they did the online calculator bit, then checked with their insurance company, it was as near as. So they went with the calculator.

    Ours is due next month, so will try the calculator.

    Lurking.

  7. #7
    Off Limits...... beetle's Avatar
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    Default Re: The new house insurance conundrum

    Does any one have the link to this calculator site?

    Im not trying to be difficult it just comes naturally.

  8. #8
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    Default Re: The new house insurance conundrum

    Quote Originally Posted by Jen View Post
    You have to be careful with the online calculators. In Auckland you need to aim for $2250-$2500/m2 in costs plus your fencing, driveway, decks, demolition, building consent fees...
    I read somewhere that insurers are dropping cover for fencing, paths and maybe driveways? So insuring only the house itself. Might not be all insurance companies but it would pay to read the policy thoroughly. They are pretty good at very quietly changing things.

  9. #9
    In a 1920s time warp Terry Porritt's Avatar
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    Default Re: The new house insurance conundrum

    As with Quality Control, there is a "producer risk" and a "consumer risk" with insurance, but not so well defined. The problem with insurance companies is they minimise their risk and payout, some would say unfairly, by wriggling and twisting and interpreting the fine print in their favour, as witness some of the insurance debacles one could say scams, in Christchurch.

    The consumer naively thinks the insurance company will pay out in full, so you really have to judge what degree of risk you will take upon yourself by way of excess. For example, you could forget about fencing, decking, garage (if separate), and just go for basic house rebuild, thus saving on premiums.

  10. #10
    Moderator Jen's Avatar
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    Default Re: The new house insurance conundrum

    Quote Originally Posted by beetle View Post
    Does any one have the link to this calculator site?

    Try this http://homebuilding.cordell.co.nz/in...e=38&restart=1

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