Insurers backing down from sum insured policiesJAKUB KRECHOWICZ/123RF Homeowners have struggled to work out what their houses would cost to rebuild. Competitive pressure is forcing insurers to back down from "sum insured" house policies, one expert says. A number of insurers have since stepped back from strictly sum insured policies - Vero now offers a policy that offers extra protection if the sum insured is not enough to cover a rebuild. He said insurers had had to move to sum insured policies after the wide-scale losses in Canterbury. If the Canterbury quake re-occurred with sum insured then a high proportion of claimants could have found themselves under-insured, and out of pocket.

Source: Stuff September 12, 2016 04:09 UTC