Media release

Auckland CVs a Timely Reminder to Check Home Insurance Cover

18 June 2025

Auckland homeowners received their new council property valuations this week, with residential values dropping an average of 9% since 2021. But while these figures are important for rates, Vero Insurance is reminding homeowners not to confuse their council valuation (CV) with their home insurance sum insured - mixing the two up could leave them seriously underinsured if disaster strikes.

Council valuations are primarily used for rating purposes and reflect market-related values, including land. In contrast, your home insurance sum insured should reflect how much it would cost to rebuild your home - including materials, labour, demolition, and professional fees.

Vero is encouraging homeowners to use the CV release as a prompt to also review their home insurance policy.

“We know that council valuations often spark financial reviews, but it’s important homeowners don’t assume their CV is a guide for their insurance,” says Stephen Fearon, Executive Manager Consumer Portfolio at Vero. “Your coverage needs to reflect current rebuild costs, not market value - and those costs have increased significantly in recent years.”

A helpful first step is to use an online tool such as the Cordell Calculator, which is available at Vero.co.nz and estimates your home’s rebuild cost based on property-specific data.

Previous customer trends indicate that many people only update their sum insured when prompted - and those who do often adjust their cover significantly after using a rebuild calculator. This suggests that existing sums insured may not always reflect the actual cost to rebuild, particularly in a climate of rising construction costs.

Many homeowners haven’t reviewed their cover in years, even as inflation, supply chain issues, and labour shortages have pushed rebuild costs higher. Relying on outdated figures could lead to a shortfall if disaster strikes.

“We’ve seen how devastating it can be when people discover too late that they’re underinsured,” Fearon adds. “Taking just a few minutes now to check your cover could save months of stress if the worst ever happens.”

For more information on understanding your sum insured and how to check it, visit www.vero.co.nz/personal-insurance/house-insurance/sum-insured