Insurers are urging people not to rely on the latest Auckland Council valuations when it comes to working out how much to insure their home for. Last month the council revealed valuation figures for the city’s 548,000 properties.
Three years on from the last valuation round, the average capital value has surged by 45 per cent to $1.076m. The valuations are made up of two parts – the land value and the improvements value, which typically refers to the house and anything built on the site.
But Amelia Macandrew, customer relations manager at AA Insurance, said the improvement value should not be relied on for deciding how much to insure a home for.
“This is an average value and doesn’t represent the actual cost of replacing your home, so you shouldn’t rely on it when deciding how much insurance you need.”
Macandrew said home insurance was designed to cover the cost of rebuilding your specific home if it was damaged.
“When deciding the rebuild, or sum insured, value for your home, consider all the things you would want reinstated – things that make your home special.”
“You should include any special materials and chattels like carpets, blinds, lighting, fittings and fixtures. You should also include improvements you’ve made like to your kitchen, bathroom, landscaping, or decking.”
“These are what matter for insurance purposes, not your CV.”