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House Insurance

Many of the main insurance companies are switching theri house insurance policies to "Sum Insured". The square metre, full replacement cover definition is being replaced by most insurance companies from renewal date or being introduced in 2014.

Currently, most replacement house insurance pays the sum needed to replace the house in the case of total destruction without policyholders needing to specify the sum they will be paid in such an event. New house insurance policies issued and renewal of existing covers will see the homeowners having to specify the replacement cost of their home.

The change has been driven by international reinsurers wanting  a clearer view of their natural disaster risk, and the need to keep house insurance affordable. Christchurch repairs and rebuilds expected to be completed over the next 4 - 5 years are facing cost escalations of 15% p.a.

House premiums are increasing on average 60% with the EQC premiums up to $180.00 per property unit.  House holders will now need to set or agree to a maximum sum insured for their home.  It does bring the risk for most homeowners that the sum insured may not turn out to be enough, particularly in huge events where rebuild prices can rise.

You can pay professionals, or use a range of websites to help establish rebuild costs.  Cordell website http://bit.ly/11ORgNG is a user friendly site that you may find usefull to help establish this figure.