This is an excellent question, and we're glad you are asking it now rather than after a loss.

​

The goal is to set your sums insured high enough to be able to rebuild - or at least get back to your pre-loss position. Even if your couch was a bargain on Marketplace, you should insure it for its replacement cost.

​

When calculating this it's important to consider the definitions in your policy wording, so for your Home Building you should factor in driveways, fencing, sheds, tanks etc. And with Home Contents you need to include carpets, floating floorboards, window furnishings and then pretty much everything else that's not fixed down.

​

The industry rule of thumb to avoid being underinsured is to have your Contents Sum Insured set at 1/3rd of the Building Sum Insured - give or take depending on your specific circumstances. It's not an exact science, but if you asked to take out $30,000 Contents cover for your $600,000 Building we would encourage you to consider increasing this figure.

Likewise if you wanted to insure $300,000 Contents for your $300,000 Building we would also want to have more of a discussion with you. We're not builders or quantity surveyors, but we can help you to make an informed decision.