How home insurance works

From about mid-2013, many home insurance policies shifted from unspecified replacement cover (square metre) to being insured for up to a maximum specified amount (Total Sum Insured). Other key changes included how recreational features (swimming pools and tennis courts), retaining walls and special features are covered by your home insurance policy.

Insurance companies placed customers in control of setting their own Total Sum Insured for their Home Insurance Policy. Customers are now also responsible for ensuring their rebuild cost (Total Sum Insured) is kept up to date, if renovations, extensions or other changes are made.

At Crombie Lockwood we’re here to help you understand how home insurance works and guide you through this process to ensure your home is adequately protected.  

We’ve partnered with Construction Cost Consultants (“CCC”) Quantity Surveyors to offer discounted Home Rebuild Valuations;  Using a Quantity Surveyor is the most accurate way to determine the rebuild cost of your house. 

CCC are nationwide and we’ve partnered with them as they provide more accurate rebuild valuations for a lower cost than typical valuers. They’ll visit your home, measure and assess its rebuild cost for a special Crombie Lockwood discounted cost.

The benefits of this are:

  • Peace of mind your Sum Insured is as accurate as possible. This means in the event of a total loss, you’ll have sufficient funds to rebuild your home
  • Provides an accurate starting point for your Sum Insured to be updated each year in line with inflation
  • Identifies features that need to be specified if over policy sub-limits e.g. retaining walls
  • Gives rebuild costs for unusual features of the home e.g. cable cars, bridges etc.

Remember, Market Valuations and Rateable Values should never be used for setting your Sum Insured because they are not based on rebuild costs and will also include the value of the land.

Your alternatives to a rebuild valuation are:

  • www.need2know.org.nz/crombielockwood where you’ll find a free rebuild calculator
  • Consult a licensed builder or other qualified professional to assist you in setting an appropriate rebuild cost   



Here’s what to do at a glance:

If you would like to become a Crombie Lockwood client, or need guidance through these changes click here to complete our contact form and a broker will be in touch.

*Please note,the calculator is not recommended for homes in excess of 700 square metres, or high value homes where the likely cost of rebuilding would exceed $2 million. In this instance please consult a valuer, builder or other qualified professional.





Important Information The information on this website is only intended to provide a general summary or introduction to a product, offering or service.  Any decision to purchase this product should be based on specific advice for your business or personal needs.  For further information on this product, offering or service please speak to your broker.