Help Available...
Change can be daunting so it is always good to know that help is available. Some options are explained below.
Do it Yourself
The cheapest option would be to go at it on your own. Luckily, you can find free, online sum insured calculators on most of the insurance and bank websites. Most are using a calculator provided by Cordell, an Australian company that specialises in building and construction information. It calculates the replacement building cost of your home based on the information you provide, although each insurer's calculator may provide slightly different results. Questions include the following:
- The size of your house in square metres;
- The approximate year of build;
- The type of land your house is built on (eg: flat, steep ground or gentle slope);
- The quality of your home furnishings (eg: average, quality or prestige)
It is important to understand that the figures produced are a guide only and are not based on the full details of your home. Please see TOWER's calculator on their website for an example.
The Property Valuer
After a detailed inspection, a property valuer will provide a comprehensive valuation report for insurance purposes that assesses the cost of rebuilding your home. This is different to a market valuation – ensure you ask for a rebuild valuation for insurance purposes.
The Quantity Surveyor
It may cost more to get one but a quantity surveyor would be able to advise on rebuilds from a project point of view. Working with builders, quantity surveyors keep close tabs on labour and material pricing. Since a house rebuild would constitute a building project, taking this route could be your safest bet. Their valuation will calculate the cost of every building material used in a rebuild, down to the number of nails required.
The Licensed Builder
Contacting a licensed builder can give you certainty on the exact measurements of your home. Builders also tend to know the latest building material prices and can give you an idea about what cost to expect when purchasing raw building materials. However, a licensed builder might not be able to put the total sum insured value of your home together for you. Note that due to liability issues, Registered Master Builders have been recommended to refrain from costing rebuilds for insurance purposes. Certified Builders could possibly follow suit.