Our home insurance is changing
From now on, the way Lantern insures your home is going to be different. When your home insurance renews, your home will shift from being insured for an unspecified replacement cost to being insured for up to a maximum specified amount. This amount is called a Total Sum Insured.
Please note: If you currently have home insurance with Lantern, you’ll need to refer to your policy documents and the change summary in your home insurance renewal pack for details of the changes as well as the level of cover you have (if any), when you receive your pack.
It’s important that your Total Sum Insured amount reflects the likely cost of rebuilding your home as accurately as possible. This is because if your home suffered extensive damage and needed to be rebuilt, the maximum we’d pay is your Total Sum Insured amount, even if the actual cost of rebuilding turned out to be greater than that.
Why it’s happening
A number of reinsurers – the companies who cover insurance companies against natural disasters and catastrophes – now require homes in New Zealand to be insured for a specified amount. This is because they want to know the maximum amount that insurers would have to pay to rebuild the homes they insure.
By changing from unspecified replacement cost to a maximum specified amount of cover, Lantern’s home insurance policies will, in this aspect, be aligned with some of the policies in other countries such as Australia, the United Kingdom and the United States, plus Lantern will also meet the requirements of its reinsurers.
At renewal time, we’re asking all our customers to:
Check the Total Sum Insured amount on their Policy Schedule
Work out the likely cost of rebuilding their home, taking into consideration any Special Features, retaining walls or Recreational Feature
Contact us if their Total Sum Insured needs to change, or if additional cover (as relevant) is needed for Recreational Features, retaining walls or Special Features
Different ways to estimate the likely cost of rebuilding your home
It’s important to set your Total Sum Insured at an amount you’re comfortable with
If your Total Sum Insured is too low your insurance might not cover the full cost of your home’s replacement in a future major event. If it’s too high, you might be paying too much premium – and if it costs less than the Total Sum Insured to repair your home, we’d only pay the actual cost.
Where to get support
Want to estimate the likely cost of rebuilding your home? Visit Need2Know.org.nz/Lantern here