If your home is currently insured for an unspecified replacement cost, on renewal your insurance policy will shift to a maximum specified amount. This total specified amount is the maximum the insurance company will pay in the event of a total loss. This is a big deal – it is important to check your total sum insured.
If you set it too low, you may have to rebuild to a lesser size or quality, or top up the rebuilding costs. If you set the total sum insured too high, you will pay more than you need to pay. The insurance company will only pay what it costs to rebuild.
Keep in mind too that rebuilding in the country can be more expensive than rebuilding in town.
Take the time to check your insurance; getting it wrong could be a very costly mistake.
We continue making the complicated simple – including the new home insurance changes! Give us a call now – let’s get this one sorted for you.