What if, one day, out of the blue, your home or property was damaged or totally destroyed by fire, storm or earthquake?
Suddenly your insurance policy becomes your most valuable (and possibly your only) asset.
If your insurance policy does suddenly become your most valuable asset, does the Sum Insured value on your policy meet the total rebuild costs of your home or property?
The Christchurch experience has been an exhausting period for thousands and thousands of home and property owners caught up in the insurance aftermath. Even though EQC and the insurance companies are quoting high percentages of claims have been settled, many people in “the know” express concerns that thousands of the more difficult claims have yet to be settled with hundreds lined up to go to court. Why is this so and what can home and property owners do now to minimise these issues in the future?
Case Study 1: Renovated Villa
Case Study 2: Hillside Property
The Solution (continued from article above)
The solution is to make a relatively small investment to secure the ownership of the most comprehensive Sum Insured Rebuild Valuation available on the market in New Zealand.
To speedily and efficiently settle any claim, an insurance company requires irrefutable evidence as to the value of the destroyed property and how that value was arrived at.
Here is a scenario that you must consider.
You have received your default Sum Insured estimate from your insurance company. You have four options:
- You accept the insurance company’s best estimate, even though their figure is loaded with disclaimers
- You are not sure about the figure offered by the insurance company so you use an on-line calculator to check if it’s about right.
- You’re still concerned and uncertain as to what the correct Sum Insured valuation should be so you engage a valuer and spend say between $350 and $650.00. In return you get a few sheets of paper all leading to a figure that tells you what to insure your property for.
The Christchurch experience now tells us that a few sheets of paper will not provide irrefutable evidence when it comes to making a claim. Despite what you may have insured your property for – and paid the appropriate premium – the Sum Insured is the absolute maximum your insurance company will pay out AND YOU WILL HAVE TO PROVE THE VALIDITY OF THE VALUATION.
It will be a rare insurance company that is going to accept a few pages as evidence of the value of your loss if they can challenge the valuation and save themselves thousands and thousands (maybe hundreds of thousands) of dollars.