Home insurance rebuild rip off

[ukusa]

this new home sum insured that's happening at the moment, what a scam. State trying to tell me my rental property in Hornby will cost $576,400 to rebuild. They have the details correct (120m2, brick & tile, flat land, single garage, 53 years old, still has 60's kitchen & timber joinery, all original), but where the hell do they come up with a number that could build a architect designed home for a posh suburb from? FFS, the whole property is only worth about $350K, and that includes the land.
Anyway, hours on the phone, they can't tell me where they got their figure from, & they are only willing to go to a value that their online calculator comes up with for a house rebuild, which is still $10K more than my entire property value. I'm sticking to my guns on this, prepared to value at $320K including demolition & admin costs etc. They are refusing to cover it at that, so might be off to ombudsman (unfortunately cant change insurance co's in christchurch.

[mashman]

I suppose that's one way to force people to go out and get a professional evaluation. Bad luck man.

[oneofsix]

I suppose that's one way to force people to go out and get a professional evaluation. Bad luck man.

+1. This move has me worried about the insurance coming due. Flip a coin, Heads you get ripped off or tails you get ripped off. Under insure and risk being unable to replace, over insure and money down the drain. Somehow you are meant to somehow be better at estimating the rebuild costs than the insurance professionals, who's salaries you will still be paying through your fees btw but now there job will be to deign claims just like in the USA health insurance industry.

[Paul in NZ]

Our problem is the other way around....

Bastards - its going to cost me money one way or another...

[Akzle]

what, you expected a company that deals in money to HELP you??!


it got too expensive for them.. you were affecting the bottom line. so they changed the rules!

if i makes you feel any better, it's happening to every poor c*nt with insurance, everywhere
(and people sill don't see what's wrong with the system)

[Swoop]

I warned people months ago that this was on the horizon...


If you under insure, all it means is that you might have to build something a bit smaller than currently existing OR trim back on the spa baths, heatpumps and solid gold taps.
Whatever happens, make sure the old house is burnt to the ground and the fire service are given a few beers to stay away while it burns down. This means savings from the amount of crap that has to be trucked away to a tip somewhere.

[ukusa]

Update ..... after about 2 hours of phone calls & 2 ring backs (as cordless phones both ran out of battery), I finally got them to reduce the demolition/rebuild cost to where I wanted it, that is $320K. I argued the fact with people higher up the chain who liased with their loss adjusters. My main point of argument was based on if my house burned to the ground, I would be happy with maximum $320K payout (300 for rebuild, 20k demolition) because I already have a demo/rebuild scope (from State) on the house I currently live in, & it is less than what they wanted for the rental property rebuild (and for a bigger house!). They couldn't really deny it.
Anyway, long story short, my new premium has now gone from being $235 above last years, to being $41 less than last year. A win for common sense. I encourage all to fight for their own estimate, don't get forced to pay for a professional.

[merv]

Update ..... after about 2 hours of phone calls & 2 ring backs (as cordless phones both ran out of battery), I finally got them to reduce the demolition/rebuild cost to where I wanted it, that is $320K. I argued the fact with people higher up the chain who liased with their loss adjusters. My main point of argument was based on if my house burned to the ground, I would be happy with maximum $320K payout (300 for rebuild, 20k demolition) because I already have a demo/rebuild scope (from State) on the house I currently live in, & it is less than what they wanted for the rental property rebuild (and for a bigger house!). They couldn't really deny it.
Anyway, long story short, my new premium has now gone from being $235 above last years, to being $41 less than last year. A win for common sense. I encourage all to fight for their own estimate, don't get forced to pay for a professional.

Lol, just checked States own on-line calculator here http://need2know.org.nz/state/ did a few average things, put one heat pump in the house (not sure if it had any heating) and based on the size of 120m2 it spat out $327,000 so $320 is the number they should have been getting not $576,400 as you said.

[ukusa]

Lol, just checked States own on-line calculator here http://need2know.org.nz/state/ did a few average things, put one heat pump in the house (not sure if it had any heating) and based on the size of 120m2 it spat out $327,000 so $320 is the number they should have been getting not $576,400 as you said.

yeah, the one I did online came up as $356K (no heat pumps either), must have just been path/driveway sizes or similar differing. But that $356K was still more than entire land/house value combined, hence my aim at lower house rebuild figure.

[HenryDorsetCase]

this new home sum insured that's happening at the moment, what a scam. State trying to tell me my rental property in Hornby will cost $576,400 to rebuild. They have the details correct (120m2, brick & tile, flat land, single garage, 53 years old, still has 60's kitchen & timber joinery, all original), but where the hell do they come up with a number that could build a architect designed home for a posh suburb from? FFS, the whole property is only worth about $350K, and that includes the land.
Anyway, hours on the phone, they can't tell me where they got their figure from, & they are only willing to go to a value that their online calculator comes up with for a house rebuild, which is still $10K more than my entire property value. I'm sticking to my guns on this, prepared to value at $320K including demolition & admin costs etc. They are refusing to cover it at that, so might be off to ombudsman (unfortunately cant change insurance co's in christchurch.

get a QS. or a different insurance company. (BAHAHAHAHAHAHAHAAAAA - sorry)

[HenryDorsetCase]

what, you expected a company that deals in money to HELP you??!


it got too expensive for them.. you were affecting the bottom line. so they changed the rules!

if i makes you feel any better, it's happening to every poor c*nt with insurance, everywhere
(and people sill don't see what's wrong with the system)

you have heard the phrase "necessary evil"? Because lemmetellya, having insurance is better than not having it, based on recent relevant experience.

[Akzle]

you have heard the phrase "necessary evil"? Because lemmetellya, having insurance is better than not having it, based on recent relevant experience.

no. Raping boys is necessary evil. killing hookers, necessary evil. Driving drunk, smoking crack, invading middle eastern countries, digital prostate exams, gassing jews, genociding injuns, all necessary.

Systemic slavery and Defrauding every god fearin white cunt, thats NOT necessary.

[KoroJ]

Good result in the end...

(unfortunately cant change insurance co's in christchurch.

Actually, I think you might find that there are three companies all owned by IAG and it is possible to switch between them.

We have struck this where houseowners were being bullied by State and we managed to place the client with NZI.

I don't know what is up with State on this, but the Sum Insured is ultimately the Houseowners responsibility and hence the whole reason for providing online calculators. Most of the default values we have seen have been low (except for State's) and although under insurance is a problem with Insurers, trying to push $3K+ per sq mtr for an average home on flat ground is pushing it a bit!

[Road kill]

you have heard the phrase "necessary evil"? Because lemmetellya, having insurance is better than not having it, based on recent relevant experience.

That's the most shitting thing about the whole bloody thing.

Fuck it,I really don't like paying for something that should never happen.

I didn't buy at the bottem or the top of a gully on the river flats by the beach or on top of a fucken cliff,the nearest volcano is a fair way away an we don't have earth quakes around here thanks.

Anybody wanna buy a nice three bedroom late 60's style home in Tokoroa ?

Fully fenced, two car skyline garage/workshop,new fan forced fire,,,concrete fucken drive way bro',,,,,with a gate.

Why live in Auckland when you can buy 6 of these fuckers for the same $ in Tokoroa ?
Then sit back an rake in the rent from all the solo mums that are the few people still allowed to live in Toke by WINZ if their on the dole.


Buy my house damn it.

[AllanB]

Half a mill - mate you are dreaming!.

Easy to verify - go to a show home or two and ask for plans and costs of a new similar house. Add additional foundation costs relative to your land zone and demo ($15 -20k average house). On line calculators err on the side of caution as they do not want to be finger pointed at if it all goes tits up and they recommended a too low value.