Free tool
Home insurance calculator
Estimate your home's rebuild cost and get your sum insured right.
ICNZ estimates 85% of NZ homes are underinsured. Your sum insured is what it costs to rebuild your home from scratch, not the market value. This calculator estimates rebuild cost based on NZ construction data, including demolition, professional fees, and an inflation buffer.
Your property details
All levels combined. Average NZ standalone: 150 sqm.
Standard covers a typical NZ new build with decent fittings.
Each additional bathroom adds approx. $25,000.
Adds approx. $45,000 for a standard in-ground pool.
Covered up to $80,000 under Vero Maxi. Adds approx. $30,000 to rebuild.
What is sum insured and why does it matter?
Sum insured is the maximum your insurer will pay to rebuild your home after a total loss. After the Canterbury earthquakes, NZ insurers moved away from full replacement policies. Now every homeowner sets their own figure. Get it wrong and you carry the gap yourself.
Not the market value. Not the sale price. Sum insured is what it costs to knock down the damaged structure, clear the site, and rebuild to current NZ Building Code standards. That includes professional fees: architects, engineers, council consent. All of it comes out of your sum insured.
What affects rebuild cost in New Zealand?
Floor area and build quality are the biggest drivers. A standard 150 sqm home in Auckland costs roughly $480,000 to $540,000 to rebuild at 2025 rates. Once you add demolition, professional fees, and an inflation buffer, you can be looking at $600,000 or more.
Two-storey homes cost roughly 15% more per sqm than single-storey. Masonry or brick adds another 10-25% over standard timber frame. Steep sections or sites with difficult access push costs higher again. And if you are in Auckland, Wellington, or Queenstown, labour costs run above the national average.
Toka Tu Ake and the insurance gap
Toka Tu Ake (formerly EQC) covers the first $345,000 (including GST) of natural hazard damage to your home. For any home with a rebuild cost above this cap, your private insurer covers the gap, but only up to your sum insured. If your sum insured is too low, you pay the difference.
Under Vero's Maxi cover, the SumExtra benefit can pay up to an additional 10% above your sum insured for natural hazard claims. To qualify, you need a rebuild estimate from an accepted source (such as a registered valuer, building practitioner, or the insurer's online calculator) that is less than three years old.
What your sum insured should include
- Full rebuild cost of the dwelling to current Building Code standards
- Demolition and site clearance ($25,000 to $50,000 depending on construction type)
- Professional fees: architect, structural engineer, geotechnical engineer, surveyor, council consent (typically 12% of construction cost)
- Outbuildings, garages, and carports
- Additional features: decks, retaining walls, swimming pools, driveways, fences
- An inflation buffer (roughly 6%) to account for construction cost increases during the 12 to 18 months it takes to rebuild
NZ construction costs per square metre (2025)
| Build quality | Cost per sqm (NZD) | Description |
|---|---|---|
| Budget | $2,400 - $2,800 | Simple design, standard materials, basic fittings |
| Standard | $2,900 - $3,600 | Typical NZ new build with decent fittings |
| Premium | $3,800 - $5,200 | Quality fittings, engineered timber or steel |
| Luxury | $5,500 - $8,000+ | Bespoke architectural design, high-end materials |
Sources: Rawlinsons NZ Construction Handbook, BRANZ building cost studies, CoreLogic Cordell benchmarks. Figures include GST. Regional variations apply.
Not sure if your sum insured is right?
Use this calculator as a starting point, then talk to a broker. We review your sum insured against your property details and flag anything that looks off. No cost, no obligation.
Talk to a broker about your home coverCommon questions about sum insured
What is sum insured?
Sum insured is the maximum amount your insurer will pay to rebuild your home. It should cover demolition, rebuilding to current Building Code standards, professional fees, and an inflation buffer. It is not the market value or sale price.
How much does it cost to build a house in NZ?
NZ residential construction costs range from about $2,400/sqm for a basic build to $5,500/sqm or more for a luxury home. A standard 150 sqm home costs roughly $435,000 to $540,000 in construction alone, before demolition, professional fees, and inflation.
What does Toka Tu Ake (EQC) cover?
Toka Tu Ake covers the first $345,000 (including GST) of natural hazard damage. This covers earthquake, natural landslip, volcanic eruption, hydrothermal activity, and tsunami. If your rebuild cost exceeds the cap, your private insurer covers the gap up to your sum insured.
How often should I update my sum insured?
Review your sum insured at least once a year. Construction costs in NZ have risen significantly in recent years. If you have done renovations, added rooms, or upgraded your kitchen or bathrooms, update your sum insured to reflect the increased rebuild cost.
Is sum insured the same as market value?
No. Market value includes land, location, and what buyers will pay. Sum insured is purely the cost to demolish and rebuild the physical structure. In some areas, rebuild cost exceeds market value. In others, land value makes market value much higher. They are separate numbers.
What is SumExtra?
SumExtra is a Vero feature that can pay up to 10% above your sum insured for natural hazard claims. To qualify, you need a rebuild estimate from an accepted source (a registered valuer, building practitioner, or online calculator) that is less than three years old.