Replacement Cover

With our new Replacement Cover, we'll fully reinstate your home after a fire, flood or storm, even if it costs more than the sum insured*.

What is replacement cover?

We understand it can be difficult to calculate the cost of rebuilding your home. To help eliminate some of this stress, we’ve introduced Replacement Cover to our Home insurance cover. This cover will apply to any loss caused by an event other than a natural disaster, provided you have taken reasonable steps to provide us with the correct size of your home, and calculated an accurate sum insured prior to the loss.  It means that if it costs more than your sum insured to rebuild your home, we’ll get things sorted and use Replacement Cover to settle your claim.

Refer to our policy wording for the full details.

What do I need to do?

Existing customers

Your Home cover will automatically be updated to include Replacement Cover at no additional cost. It's still important to check that the sum insured figure, and details regarding the size of your home you've provided us, are accurate and sufficiently cover the rebuilding of your home in the event of a natural disaster. You can calculate your sum insured here and then simply contact us to let us know the new value if it has changed.

Want to know more about Replacement Cover? Read our Frequently Asked Questions for further information.

Switching to us?

If you are thinking of switching your home insurance to us, then Replacement Cover will already be included as part of your cover. However, you’ll need to make sure you have taken all reasonable steps to calculate your sum insured correctly, and provided us with the correct size and details of your home. You can calculate your sum insured here. Once you’re happy with the figure, use it to get a quote.

You should also check that your new policy covers everything in the same way as your previous one, as cover can differ between insurance companies. Simply contact us if you have any questions regarding switching your cover to us – we’ll be happy to help you get things sorted.

Find out more about sum insured and read our Replacement Cover Frequently Asked Questions.

First time buying home insurance?

If you’re a first time home buyer, whatever type of home you have, you want to be sure that it’s protected. With our home insurance, you can trust us to get both the big and little stuff sorted when it matters. When you take out home insurance with us, Replacement Cover will already be included as part of your cover. However, remember you’ll need to take reasonable steps to calculate an accurate sum insured figure and to provide us with the correct size of your home and then use it to get a quote.

Find out more about sum insured or, have a look at our Home Insurance section on our Frequently Asked Questions page.

Frequently asked questions

How can I get replacement cover included in my Home or Landlord policy?

Replacement cover will be applied to your policy automatically. In an event other than a natural disaster, we'll use replacement cover to settle your claim, as long as you have taken 'reasonable steps' to give us an accurate size for your home and you have calculated an accurate sum insured.

What happens if I don't take 'reasonable steps'?

If you have not taken reasonable steps, and at claim time we find the size of the home is wrong and/or it is underinsured, we will settle your claim based on the sum insured.

What is replacement cover?

In an event other than a natural disaster, we may settle your claim using replacement cover. This means we'll pay for the costs of the repairs or rebuild of your home, even if it costs more than the sum insured.

Why is replacement cover only offered to non-natural disaster events?

Offering full replacement on all events would significantly increase our reinsurance costs, which would mean significantly higher premiums.

To keep our premiums at a competitive and affordable price, we have chosen to offer this cover for non-natural disaster events only.

What 'reasonable steps' do I need to take to ensure I get replacement cover?

Using either a LIM report or other council authorised document to calculate the accurate size of your home is considered taking reasonable steps. Guessing the size of the home, or using a measuring tape to try and estimate it, are not considered reasonable steps.

Reasonable steps includes using tools we have provided such as the Cordell Sum Sure Calculator or getting a qualified professional to calculate an accurate sum insured. Taking a guess or relying on your property's CV/market value are not reasonable steps.

 

What happens if I don't take 'reasonable steps'?

If you have not taken reasonable steps, and at claim time we find the size of the home is wrong and/or it is significantly underinsured, we will settle your claim based on the sum insured.

Why is AA Insurance offering replacement cover?

We appreciate that many customers have difficulty calculating an accurate sum insured and understand it can be stressful contemplating whether the amount calculated is enough. To eliminate this stress and provide you with a level of comfort, we introduced replacement cover for those customers who take reasonable steps to provide us with accurate information.

Is my sum insured still important?

Yes! Taking reasonable steps to calculate an accurate sum insured is necessary for replacement cover to apply. Your sum insured will also be used to settle claims in the event of a natural disaster.

Will I still get replacement cover if I've given a low sum insured?

Taking reasonable steps to calculate and provide an accurate sum insured is a condition that must be met before replacement cover will apply. If you do not take reasonable steps to provide this, you will only have cover up to the limit of the sum insured.

Application for cover is subject to underwriting acceptance. Limits, excesses, terms, conditions and exclusions apply to the insurance cover referred to. For full policy and benefit terms and conditions please go to aainsurance.co.nz/terms.

^ This is general information and is not a recommendation, opinion or guidance on the sum insured that is appropriate for any of our customers.  Nor does this information provide any advice or opinion on the extent or adequacy of the cover provided by sum insured insurance. This information is not personalised financial advice and does not take into account the particular situation of our customers. Customers must make their own decision on the sum insured that is appropriate for their circumstances.