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House insurance
Posted by Vanessa45
House insurance July 07, 2016 01:09AM |
Registered: 7 years ago Posts: 804 |
Just wondering what most thought it would cost to rebuild a house in the event of a fire or an earthquake?
I realise the major city areas will cost more
I just spoke with the insurers and they now add on $100,000 for debris removal!
I was quoted for an Auckland house $3000 per sqm
then add debris removal and it came in over $500,000 for a rebuild
House size is 144sqm
Do you think that is reasonable?
I realise the major city areas will cost more
I just spoke with the insurers and they now add on $100,000 for debris removal!
I was quoted for an Auckland house $3000 per sqm
then add debris removal and it came in over $500,000 for a rebuild
House size is 144sqm
Do you think that is reasonable?
Re: House insurance July 07, 2016 02:35AM |
Registered: 11 years ago Posts: 799 |
Theres so many factors to account for that based on above no one could say right or wrong, but on the face of it, assuming its a basic house on perfectly flat land, it probably sounds a little excessive, that said, I would not go far as saying it sounds unreasonable.
I would also consider its best to over-estimate than under estimate.
Whats the difference in insurance cost between say 400 and 500K
I would also consider its best to over-estimate than under estimate.
Whats the difference in insurance cost between say 400 and 500K
Re: House insurance July 07, 2016 02:56AM |
Registered: 16 years ago Posts: 1,979 |
Have you tried using the online calculators that insurance companies provide? They're good at giving a rough estimate. We pad the figure they give by about another 20% though. The extra costs only a few dollars per month and it is way way better to be over-insured.
I find it surprising that you were given a blanket $/sqm figure as I'm sure you know, houses vary dramatically in the quality of their build, fixtures and fittings, building materials etc. You now also have to separately specify any retaining walls with replacement value over $20k, decking etc in your policy. An architectural masterpiece on Takapuna beach is going to cost a lot more per meter to replace than my very standard house Warkworth.
I just looked at our policy and if you take out the $47,000 of coverage we have for 35m of retaining walls, our house is covered at around $3500/m2 - and apart from my brand new, better than average kitchen appliances, our house is decidedly average. So given that, and knowing that we intentionally over insure, I don't think that $3000/m2 is out of the ballpark, so long as your fittings/materials are not of a higher than average standard.
IMO house insurance is one thing not to try and save a few dollars on. If there is a large scale natural disaster, you can be sure the cost of building materials will rise and I don't think any calculators take that into account.
I find it surprising that you were given a blanket $/sqm figure as I'm sure you know, houses vary dramatically in the quality of their build, fixtures and fittings, building materials etc. You now also have to separately specify any retaining walls with replacement value over $20k, decking etc in your policy. An architectural masterpiece on Takapuna beach is going to cost a lot more per meter to replace than my very standard house Warkworth.
I just looked at our policy and if you take out the $47,000 of coverage we have for 35m of retaining walls, our house is covered at around $3500/m2 - and apart from my brand new, better than average kitchen appliances, our house is decidedly average. So given that, and knowing that we intentionally over insure, I don't think that $3000/m2 is out of the ballpark, so long as your fittings/materials are not of a higher than average standard.
IMO house insurance is one thing not to try and save a few dollars on. If there is a large scale natural disaster, you can be sure the cost of building materials will rise and I don't think any calculators take that into account.
Re: House insurance July 07, 2016 03:12AM |
Registered: 15 years ago Posts: 2,935 |
The link below is a good one for you to have a look at.
[www.sorted.org.nz]
You can set your sum too high and pay more than you need to but on the other hand under-insuring can bring some real heartache.
Don't get quotes from only one insurer and make sure you read the fine print.
Incidentally, we have just received our insurance bill, our home is slightly smaller than yours. Comprehensive cover cost is around $900. EQC and GST levies are included in the cost.
The cost of insurance has risen tremendously over the last few years. Partially due to insurance underwriters being hit with claims from all corners of the globe. Don't just think Christchurch. Floods, tsunamis, earthquakes etc all contribute.
[www.sorted.org.nz]
You can set your sum too high and pay more than you need to but on the other hand under-insuring can bring some real heartache.
Don't get quotes from only one insurer and make sure you read the fine print.
Incidentally, we have just received our insurance bill, our home is slightly smaller than yours. Comprehensive cover cost is around $900. EQC and GST levies are included in the cost.
The cost of insurance has risen tremendously over the last few years. Partially due to insurance underwriters being hit with claims from all corners of the globe. Don't just think Christchurch. Floods, tsunamis, earthquakes etc all contribute.
Re: House insurance July 07, 2016 06:02AM |
Registered: 17 years ago Posts: 3,660 |
Some people under-insure because they've chosen to build a simpler/cheaper/smaller house in the event of their original one being written off. It means they lose the difference between house value in such case but save on premiums and are also, I guess, hoping the major event doesn't occur.
Re: House insurance July 07, 2016 10:36AM |
Registered: 18 years ago Posts: 2,415 |
We also faced the dilemma when it came to re-insure our house. Finally we decided to use a quantity surveyor as it was just too difficult to work out how much we should insure for using the online calculator. I can't recall what it cost us without digging out the account but it took a lot of guess-work out of the decision.
Re: House insurance July 07, 2016 11:44PM |
Registered: 13 years ago Posts: 176 |
A number of years ago when the change of determining a level of insurance by clients, rather than taking on the Ins company value came into effect I watched a program - Fair Go maybe, which had 3 different people use the website checklist to detail items on their properties (verandahs, retaining walls, decks, pools, number of rooms etc), as well as a quantity surveyor doing the same process on the same properties, & guess what - they all came up with totally different figures. Most were way overvalued which means your premiums will be much higher & I guess on a cashflow basis, many people will consider the money now for current needs rather than on a scenario we all hope will never happen.
Who ever wants to say though that insurance isnt needed - just today I see in our local HB paper that a fire has destroyed a house & left its resident seriously burned.
Who ever wants to say though that insurance isnt needed - just today I see in our local HB paper that a fire has destroyed a house & left its resident seriously burned.
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