This is a very insurance sounding term that can sometimes lead to scratched heads, so what does it mean?
The sum insured represents the maximum FMG would pay in the event of a loss to the item insured. You set your own sum insured so it’s important to make sure it is enough to replace the insured item in the event of a total loss. Insurance should not be set and forget. Sum insureds should be reviewed frequently, and we have some tools that can help.
House sum insured
When calculating your house’s sum insured amount, FMG has sought expert advice on the rebuild costs for different house construction types. While we’ve made every attempt to calculate an accurate rebuild cost, this amount is only an indication of what you may need to rebuild your house if something happens. Advice to help you determine the correct sum insured for your house is available on our website, including a comprehensive guide with advice on how to measure your house to ensure the square metre area is accurate – this is a crucial element in determining an indicative rebuild estimate amount. There is also information on the different basis of house claim settlements. Of course, we’re always available to talk through your situation, so don’t hesitate to contact us.
If you’ve any doubts, or your house has special or unique features, you may wish to get an independent valuation to establish a suitable sum insured. If your house sum insured is above $2 million, we highly recommend it. This can be done by using a:
Your sum insured should reflect the cost to rebuild your home, including demolition and removal of debris costs, and professional fees. It should not include the land value and should not be based on the market value or rateable value and does not include your house contents which we cover next.
Contents sum insured
You may be surprised by how much your household contents add up to. Our handy calculator will give you an estimate amount.
Vehicle sum insured
Due to the value of cars, vans and utes changing over time, we’ve partnered with an independent service to provide improved vehicle estimate ranges to help you select a market value sum insured for your vehicles. In the event it is damaged beyond repair, FMG will pay the market value (Market value means what you would likely sell it for on the open market), or the sum insured value for your vehicle, whichever is less. Therefore, it is important to review your sum insured value to check that the sum insured reflects the vehicle’s current market value. Ultimately, it is up to you to determine what your vehicle sum insured value should be.
If you need to adjust your sum insured value to account for unique features specific to your vehicle, such as condition, kilometres travelled and/or accessories/modifications you can do this online via FMG Connect or by calling us on 0800 366 466.
Everything is getting more expensive to buy and replace, which is why it is important now more than ever to check that you have adequate cover. It may cost less than you think to increase your sum insured.