Calculating your sum insured
Your sum insured isn't the same as the market value of your house. It’s the likely cost of rebuilding your home on its current site, based on:
Your current house
- standard and type of construction
- structures, like decks, driveways, sheds, garages, retaining walls, fencing and outbuildings
- period features (typically in villas and bungalows)
- permanent swimming and spa pools
- special features such as jetties and cable cars
The cost to rebuild
- building material and labour costs
- demolition and removal of debris
- site preparation
- professional fees
- compliance costs
There are a number of ways you can calculate your sum insured - it's up to you. You can use the independent online Cordell Sum Sure calculator, or ask a licensed builder, quantity surveyor, architect or a registered valuer to help.
If you share a driveway or fences with your neighbours, you're responsible for insuring your portion of these.
If you live somewhere governed by a body corporate, like an apartment complex, the body corporate usually has one insurance policy covering all the units in the complex, and all the common property. This may already be insured on a sum insured basis – you can find out from your body corporate secretary or committee.
You’ll need to understand the extent of your liability and allow for it in your sum insured.
Cordell Sum Sure calculator
The Cordell Sum Sure calculator is an independent tool that generates an estimate of your likely rebuild cost based on the information you provide about your house. It may not be as accurate as a valuation by a professional. It's an estimate and isn't intended to replace a professional valuation of improvement replacement costs.
To use the calculator, enter your address and check the property details.
While the calculator can be useful it does have limitations. The estimated rebuild cost is generated without a physical inspection of your property. The data used may not take into account all relevant information. In addition, it may not be accurate for very large or high value homes, such as those that cost over $2 million to rebuild, nor does it factor in many special features including:
- areas of shared ownership, such as driveways and fencing that you co–own with neighbours
- hard to access sections
- houses with multiple construction materials (e.g. brick and weatherboard)
- houses with mixed commercial and residential use
- local laws and planning requirements.