CVs no guide for insurance: Helm
Landlords.co.nz is running a series of articles on the changes to the way this country’s insurance policies work.
This will see a move from full replacement policies – where the policy pays out whatever is needed to rebuild the house – to a set amount. As well as the cost of building a new home, the sum insured also has to cover the costs of demolition and getting the site ready for rebuilding.
Helm said he went to an open home in Auckland’s Grey Lynn recently, where the property’s $870,000 CV included improvements of $280,000.
But a rebuild cost calculator estimated it would cost more like $400,487 to rebuild the property oncce professional fees, demolition, removal of debris and the fact that houses now have to be built to a higher, more expensive standard were included.
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