How to calculate your sum insured

It's important that the sum insured you provide for your home is accurate.

One way to work out your sum insured is to multiply the square metres of your home by a dollar value per square metre. 

But as every house is different and you may have special or high-end features, it’s a good idea to take the time to work out the sum insured that’s right for your home. There are a number of ways to do this.

Talk to a professional

We recommend that you talk to a valuer, architect, builder or quantity surveyor and get their help to calculate your sum insured. Ask them to provide an insurance valuation for rebuild purposes rather than a market valuation and ensure they take into account additional costs such as council fees and demolition costs. Professionals are likely to charge for their services. To get you started, we've got some ways you can find professionals near you.

Find out more

Use the free online Cordell calculator

This calculator is provided by Cordell, a third party independent company who is a leading provider of building and construction  information. The calculator is updated on a quarterly basis to ensure all the information is current. It uses general building information and costs to give you an estimate based on the information you provide. The calculator takes into account the likely rebuild costs of your home and other structures, as well as an allowance for additional costs such as professional fees and demolition.

Use calculator now

Please keep in mind that the calculator does have limitations. It may not be accurate for very large or high value homes, such as those that cost over $2 million to rebuild, and doesn't factor in many special features including:

  • Areas of shared ownership, such as driveways and fencing that you co-own with neighbours
  • Hard to access sections 
  • Houses with multiple construction materials (e.g. brick and weatherboard) 
  • Houses with mixed commercial and residential use.

It also doesn't take into account unique features such as bridges, culverts, permanent fords, dams, wharves, piers, landings or jetties and power generation or sewage treatment equipment.

The calculator gives an estimate only and you must decide if it is right for you. We recommend that you engage the services of a professional to obtain an insurance rebuild valuation, especially where you have special features like those mentioned above.

How to keep your sum insured up to date

The cost of rebuilding does change over time and at the time of renewal we will adjust your sum insured using the Building Consumer Price Index to help allow for these changes. However, it's still your responsibility on renewal to review your sum insured and make sure you're happy with it, along with adjusting your sum insured after any renovations.

*The Cordell Online Calculator provides factual information as to the estimated rebuild cost of your home, based upon the details that you provide. This calculator provides an estimate only based on industry average building replacement costs and the true replacement cost of your home will vary depending on your circumstances. It does not constitute a recommendation or opinion in relation to taking out or replacing an insurance policy. It is not personalised financial advice. It does not take into account your particular financial situation or goals. The calculator is provided by Cordell Information Pty Ltd and licensed for use on this website. Whilst every effort has been made to ensure that the information is accurate, TOWER Insurance Limited accepts no responsibility for the accuracy of any information in, or results derived from, or any reliance you place on, the calculator.