Will your insurance cover the cost of a rebuild?

NZ has had more than its share of weather events in 2023 already, with lives lost and homes and livelihoods destroyed. 

In times of hardship like this, one thing that can help is knowing you have sufficient insurance cover. 

Yet underinsurance – that’s when the sum insured on your policy isn’t enough to cover the full cost of the rebuild, repair or replacement – is on the rise. 

Costs of construction are up. Supply chain issues continue. Labour shortages affect most industries and transport, and freight charges are on the rise. Economists aren’t expecting this to ease anytime soon.  

All of this means that if you haven’t reviewed and updated your sums insured, then if your property, equipment, or buildings are damaged or destroyed, the costs of rebuilding may far outweigh the payout from your insurer, or you may have your claim delayed.  

Take the time to keep your insurance policy sums up to date, taking into account the soaring costs or new plant and equipment, as well as buildings.

Your local broker can help with this. Contact us to find out more.