How do I know my home insurance sum insured is correct?
To help keep pace with rising building costs, DSH Insurance automatically adjusts the sum insured amount of your home at the end of each insurance renewal period.
‘There are many factors that affect the cost of rebuilding or reinstating part of your home, such as increases in the cost of building materials and labour,’ says George Pipertzis, Assistant Director Product Pricing and Underwriting at DSH Insurance.
Understanding your sum insured and underinsurance
At DSH Insurance, we reduce the risk of underinsuring by estimating the replacement cost of your home. We also include an amount to cover those extra expenses you may incur after a partial or a total loss to rebuild, such as temporary accommodation, demolition costs and extra costs related to rebuilding.
‘The sum insured amount is not based on the price you paid for the property, or its market value,’ says George. ‘It is your estimate of how much it would cost to rebuild your home.’
Why your premium may change?
DSH Insurance takes a range of factors into account that may have an impact on the calculation of your premium. These include the cost to replace and/or rebuild your property, the sum insured amount, and the location of your home at the address level of your property. DSH Insurance also take into account the risk exposure of natural perils such as bushfires, storms, cyclones, earthquakes, and floods.
‘This individualised premium pricing methodology ensures policyholders are charged in line with the level of risk of their property. For example if the property backs onto a river, the premium calculations may attract a higher amount due to the greater flood risk,’ says George.
Use DSH Insurance’s Building Cost Calculator to estimate how much it would cost to rebuild or re-build your home. The estimate will be a guide only and not a professional valuation.
Looking for building insurance quotes? See the DSH Insurance website and get started.
