Our Team

Alexander Hayward Ltd
Level 1, 20 Market Street
Blenheim, New Zealand.

Phone: 03-578-9776
Fax: 03-578-2806
valuations@alexhayward.co.nz

Are you Underinsured?

Are you Underinsured?

By now most people will have heard many insurers blasting around the term “Sum Insured”. Keeping it simple this means that it is now the responsibility of the property owner to nominate the total sum which they want their property to be insured for. Shockingly, an article published by the National Business Review suggests that “Up to 93% of homeowners are underinsured to the tune of 25%-50% – equating to $167 Billion worth of residential property. This is the alarming view of Construction Cost Consultants, a group of quantity surveyors that have produced 25,000 insurance reports based on quantity surveys of residential properties and involved in $4.5 billion worth of the re-build works in Christchurch”

The article goes further on to suggest that: “The shortfall is not the fault of financial services providers or consumers but results from widespread lack of awareness of the true cost of rebuilding a home” “People need to fully rebuild their homes and most home owners will find themselves at least 25% short of the rebuild cost, having accepted the default sum provided by banks and insurers”

To most people their greatest asset is home and they have a huge proportion of their wealth tied up in it. What they don’t know is that the number which insurers are providing to reinstate their greatest assets is essentially random, with many policy documentation wordings stating that consumers seek their own advice and not to rely on the numbers provided.

Alexander Hayward Ltd valuers have the qualifications, skill and experience to assist you with professionally prepared reinstatement insurance reports on your property.

Just a thought.

Blair

Reference National Business Review, Chris Hutching, 29/11/2013, “Experts say vast majority of homeowners underinsured”

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