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). 

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 selected NZI’s (IAG) industry-shared calculator and information rich website which explains all the important points you need to understand, complete with videos and visuals it will help you arrive at an accurate re-build cost (Total Sum Insured) for your home. Even if you aren’t an NZI customer you can still use this website to help establish your re-build cost, however some information on the website might not apply to you, check with your Broker.  

If this is the first time you have read or heard about calculating your home insurance Total Sum Insured we urge you to go through all the information on the website (or talk to your Crombie Lockwood Broker) before using the calculator.  You may also choose to contact a Valuer, Quantity Surveyor or other qualified professional to assist you in setting an appropriate rebuild cost.    

Here’s what to do at a glance:

  • Check the rebuild cost (Total Sum Insured) amount on your Policy Summary (too much, too little or just right?)

  • Click here to calculate your rebuild cost.  Alternatively, consult a valuer, builder or other qualified professional.

  • Talk to your Crombie Lockwood Broker if your rebuild cost amount needs to change.

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.