The way that insurers decide on the value of your house changed after the 2010 Christchurch earthquake.
Before the Christchurch earthquakes, the size of your house (in square metres) was recorded on your insurance policy and your house payment was based on the 'replacement' cost of rebuilding a house to that size.
After the 2010 Canterbury earthquake, overseas re-insurers changed the risk status for New Zealand. New Zealand insurers now need a more accurate amount of insurance for your insurance policy — an amount that you both agree on. This is called a ’reinstatement valuation’ and is the maximum the insurer will pay if a home needs to be rebuilt.
If you own a house and wish to get it insured, or are renewing your insurance, you must decide on an insurance amount that covers the cost of re-building your house after a disaster. You and your insurer must agree on this amount and include it in your insurance policy.
Make sure you check that the insurance amount on the renewal notice covers the cost of re-building your house after a disaster.
What do I need to know to help me calculate the amount of insurance I need?
You must make sure that the amount of insurance cover will let you re-build your house (and any other structures on your property):
- on the same site
- using building materials available at that time
- to the current building code requirements
Make sure you get a written undertaking from your insurers that they will continue to insure your home after it is re-built.
How can a quantity surveyor help me to decide how much insurance I need?
NZIQS Registered Quantity Surveyors are qualified and experienced specialists in determining building costs. NZIQS has worked with the Insurance Council to create a form that a Registered Quantity Surveyor will use to help estimate how much insurance you will need to re-build your house.
Find a NZIQS Registered Quantity Surveyor who does residential reinstatement insurance work