In the past, many homes in New Zealand have been insured for an unspecified replacement cost.

This is now changing whereby homes will now be insured to a maximum "specified" amount, known as "Sum Insured".

It is now the responsibility of the home owner to know the full replacement cost of their home, and to agree this with their insurer. This will make certain that the home is reinstated to a modern equivalent home. The home owner is left in a position that is no less or no greater than their original position.

Home owners need to know:

  •  Building construction materials
  •  Age of home
  •  Exact gross floor area of the home and ancillary areas
  •  Contour of the land can impact significantly on foundation engineering costs
  •  Site accessibility
  •  Land stability
  •  Ancillary areas and items including decks, verandas, inground swimming pools, sheds, retaining walls, driveways and paving, and fencing to boundaries

A robust insurance valuation will provide a cost for:

  •  Reinstatement of all improvements
  •  Building cost inflation during the insurance period
  •  Demolition costs, which factors in transportation and disposal of materials

Townshend Cullen Associates Registered Valuers are qualified to carry out a robust valuation based on industry knowledge and ongoing research of costs within the construction industry.

All Registered Valuers are members of the Property Institute for New Zealand, and are governed by the Valuer Act 1948.