I don’t think the automatically calculated replacement sum insured will rebuild my home?
When you put the size of your dwelling into a new policy or when you move through the renewal process, Initio will automatically default to a sum insured based on $2,000 per square meter. This sum insured is a default figure only and IS NOT an accurate representation of the amount at would cost to rebuild your home.
It’s very important to remember the following when deciding on the replacement sum insured:
1. Cost of Demolition,
2. Provision for Inflation
3. Cost of Compliance
Using the Cordell calculator or obtaining an insurance valuation is the best way to predict the right replacement sum insured for your home, particularly as the figure you are given may not be quite right.
It is your responsibility as the home owner ensure that the sum insured is accurate.