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Sum insured explained

What is sum insured?

The sum insured is the most we will pay for a claim under your house insurance policy. You can choose your sum insured when you go through the quote and you'll find it on your certificate of insurance within My Insurance. 

Insurance companies in New Zealand introduced the term "sum insured" to house insurance policies in 2013. It means that you’re now expected to know how much it would cost to replace your home if you suffered a fire, earthquake or other major disaster. The amount you choose should also include demolition costs, building consents and professional fees.

If you’re unsure what your sum insured value should be, we suggest using the Cordell House Calculator as a guide or getting in touch with a valuation professional.

Your rebuilding cost will change over time. This might happen because construction costs change or because you’ve completed a renovation or addition to your home. To ensure your sum insured stays accurate, you should review it whenever your policy renews or after major work.

You can change your sum insured through My Insurance at any time. We’ll also help by automatically applying a Building Consumer Price Index adjustment to your sum insured at each policy renewal


What about my contents and car policies?

You also need to choose a sum insured for your contents policy. You can insure up to $200,000 for your total contents. It is important to know how much it would cost to replace or repair your items. 

Tip: Going from room to room to see what valuables you have and adding them up is a good way to understand how much your sum insured should be.

For car policies, we have a term "agreed value" which is the same idea as sum insured. During the quote process, you choose a value for your car. We'll provide a range depending on the type of car. This agreed value is the most we will pay when it comes to claim time. 



If you purchase a comprehensive car policy and specify an agreed value of $5,000 - in the event of a total loss e.g. a crash, flood etc, Trade Me Insurance will cover up to $5,000 for the repairs or replacement costs.



Still unsure? Fire up a live chat or contact us, we are here to help.


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