Insurance Rebuild Valuations
Insurance Rebuild Valuations
We provide independent insurance rebuild valuations, also called rebuild cost assessments, to homeowners and body corporates. Your sum insured should reflect the cost of rebuilding. We price the rebuild as construction work, not from market value or an online estimate.
Overview
When you need an insurance rebuild valuation
An insurance rebuild valuation works out the cost of rebuilding a property, so you know what to insure it for. We prepare them for homeowners and body corporates across New Zealand. It's one of our quantity surveying services.
You might need one before your policy renews, or after you've renovated, added to the building or finished a new build. It also makes sense if your sum insured has never been checked.
What we handle
What a rebuild cost assessment covers
A rebuild figure covers more than the house itself. Here's what goes into it, and where an online calculator fits.
The building itself
Floor area is a starting point, but the cost also depends on the building's materials, features and fixed items.
External works
Decks, driveways, paths, retaining walls and pools can all add to the cost. Whether your policy covers each one is a question for your insurer.
Demolition, consents and fees
Before anything can be rebuilt, what's left has to come down and the site has to be cleared. The figure includes those costs, along with consent and professional fees.
Site and access
The same house can cost different amounts to rebuild on different sites. A steep section, hard access and location all affect the cost, so they belong in the figure.
Body corporate common property
A body corporate has to insure the units and the common property, such as driveways, corridors and lobbies.
Where a calculator stops
Your insurer may offer an online calculator, which uses details about your house as a guide. The Insurance Council of New Zealand (ICNZ) says no method on its own, including a calculator, is guaranteed to match the real cost.
How cover works
Sum insured in New Zealand
Your sum insured is the dollar amount on your policy. It's the most your insurer will pay if your house is severely damaged or destroyed. You choose the figure, so keeping it right is up to you.
ICNZ's guide to calculating a house's sum insured says what the figure should cover. That means the cost to demolish what's left, plan and consent a new house and outbuildings, and rebuild them.
If the figure is set too low, you may not be able to rebuild to the same size and standard.
What you get
A rebuild figure you can set your sum insured against.
You get a rebuild cost for your property. You can use it to:
- Set a sum insured for the first time
- Give your broker a figure to work from
Not a substitute for the policy
Your policy wording decides what is covered. A rebuild valuation estimates the likely cost to rebuild. It doesn't change the policy or decide how a claim is settled.
Who it suits
Homeowners and body corporates
It's used by homeowners for a single house, and by body corporates for a whole development, which is a bigger job.
It sits alongside our pre-contract, post-contract and measurement work. You can also ask for it on its own.
If you've been offered a cash settlement on a claim, our insurance cash settlement cost review checks whether it covers the work.
How it works
How a rebuild valuation runs
- 01
Send the details
Tell us about the property and what the valuation is for. Any details you already have are a useful start.
- 02
Work out the scope
We work out what the valuation needs to cover for your property.
- 03
Assessment prepared
We price the rebuild of your property.
- 04
The result
We send you the finished valuation.
Why AMS
What AMS brings to a rebuild valuation
Priced as construction work
The figure comes from pricing the building work, so you can base your cover on what rebuilding would cost.
Independent of your insurer
You commission the valuation yourself, so the figure is prepared for your purposes.
Common property included
For body corporates, the assessment includes the common property, so you can insure it on the same basis as the units.
Frequently asked questions
How is an insurance rebuild valuation different from a market valuation?
A market valuation tells you what a buyer would pay for a property. A rebuild valuation tells you what it would cost to rebuild it. ICNZ says market value, purchase price and rateable value don't show what a rebuild costs, even for a brand new house.
How often should I review my sum insured figure?
ICNZ recommends reviewing your sum insured each year, and after significant changes such as alterations or additions. Rebuilding costs change over time, so a figure left alone can fall out of date.
Do body corporates need something different from a standard homeowner valuation?
Yes, because a body corporate's valuation has to cover everything it must insure by law. Under the Unit Titles Act 2010, that means all buildings and other improvements on the base land, kept insured to their full insurable value.
How do I calculate my sum insured?
ICNZ lists four ways to get the figure: from a quantity surveyor, a registered valuer, a licensed builder or an insurer's online calculator. It recommends using more than one.
Not sure your sum insured is enough?
Send us the details of your property, and we'll price a rebuild at today's costs.