Changes to house insurance 

In New Zealand, house insurance has been typically based on 'full-replacement' cover. Now most insurance companies, including TOWER Insurance, offer cover up to a capped maximum limit. 
This limit is called your ‘sum insured’ and needs to be based on the maximum cost of rebuilding your home. It's your responsibility to specify what this amount should be.

What does this mean for me?

The main thing you need to know is that it's now your responsibility to make sure that your sum insured is enough to rebuild your home, and to keep this figure up-to-date. It’s important this figure is accurate to avoid under or over-insuring your property. There are some tools and resources available to help you work this out.

Why are there changes?

These changes are a direct result of global disasters, including our own Canterbury earthquake, and will bring New Zealand in line with how house insurance works elsewhere in the world. Global reinsurers (those companies that offer insurance to insurance companies) will now generally only provide cover to New Zealand insurance companies if they know the costs they face. The sum insured cover gives them this certainty and means that house insurance here can remain as affordable as possible.

Calculate your sum insured

The Cordell calculator uses general building information to estimate your sum insured, based on the information you provide.