How to calculate your home insurance 

GIO’s building insurance calculator can help you estimate how much it could cost to repair or rebuild your home, and therefore help you decide how much cover you need.

What is a sum insured?

The sum insured is the amount listed on your home insurance policy as the most you can claim — ie, the most your insurer will pay — if an insured event leaves you needing repair or rebuilding of your home. Ideally, it should be enough to cover the full cost to rebuild your home.

Remember to update your sum insured if the value of your home changes, — for example, if you renovate. Otherwise, you could be left underinsured.  

Get a Home Insurance quote

What is underinsurance? 

Underinsurance is when you have insufficient insurance to cover the full amount needed to replace or repair your home and/or contents, in the event of needing to make a claim. If you need to claim and you’re underinsured, you could be left with pretty hefty out-of-pocket costs.  

On the other hand, over-insuring is paying for too much cover. Unfortunately, premiums you pay for over-insuring can’t be refunded. So, it’s important to work out how much cover you need.

How to calculate your sum insured

GIO house insurance calculator

The GIO home insurance calculator lists the things you might think about when calculating building insurance and provides a recommended sum insured based on your answers. It can be a fast way of calculating the value of your home.

Calculate the replacement value of your home

Elemental estimating

The elemental approach is a way of calculating your property’s value by considering many factors, like room sizes, building materials, construction quality, features like heating, flooring, tradespeople’s fees, and much more.

GIO’s home insurance calculator will take you through things to consider when using the elemental method. But it won’t account for some potential rebuilding costs, such as fees related to debris removal or the costs of architecture services or building permits, which you may want  to add to your estimate so that the sum insured can factor these additional costs into the amount.

Cost-per-square-metre method 

The cost-per-metre method offers a rough estimate of the value of your home based on basic information, like the size of the property, the number of rooms, and building materials.

It’ll give you a ballpark figure, not an exact value amount. Trusted online sum insured calculators, elemental estimating, and/or speaking with a builder or other professionals may get you closer to the accurate sum insured.

Safety Net Home Protection

Safety Net Home Protection is a buffer if your rebuilding or repair costs exceed your sum insured. Safety Net Home Protection is automatically included with GIO Classic Extras (up to a further 25% of your home sum insured) and Platinum cover (up to a further 30% of your home sum insured). 

Hypothetically speaking, say your house is damaged by an insured event during the period of insurance and the cost of repairing or replacing it costs $510,000 but your sum insured is only $485,000. If you have GIO Classic Extras cover and your claim has been accepted, we will pay up to a further 25% of your home sum insured (that could be an additional $25,000) on top of your home sum insured for rebuilding costs.

What will my premium be?

The best way to find out your Home Insurance preium is to get a quote.

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[1] After you take out this policy, if the increase to the size of your home or quality is more than 10% and you do not contact us, the most we will pay under this option for all levels of cover reduces to 12.5% of your sum insured.

Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Consider the Product Disclosure Statement before buying this insurance.

This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.