When most people think about what their home is worth, they focus on the market price. But understanding your home’s true value means looking at what it would actually cost to rebuild — and that number is often much higher.
From an insurance perspective, failing to calculate real replacement costs can leave you dangerously underinsured.
The Common Trap: Market vs. Rebuild Value
If your insurer only covers your home for its market value, you may be underinsured.
Land doesn’t burn, flood, or get demolished — but construction does. With building inflation rising more than 35% since 2022, rebuild estimates need regular review. This is central to understanding your home’s true value and ensuring your policy keeps pace with real-world costs.
What to Include in Your Valuation
- Building materials, fittings, and finishes
- Driveways, fences, sheds, and pools
- Professional fees (surveyors, engineers, architects)
- Debris removal and site cleanup
Underestimating any of these can leave you tens of thousands short during a claim.
Why Rebuild Costs Are Rising So Quickly
Rebuild costs are increasing due to labour shortages, supply-chain delays, and higher prices for timber, steel, and roofing materials. Extreme weather events also increase demand for tradies, creating long queues and higher rates. These factors mean yesterday’s valuation no longer reflects today’s rebuild reality — updating it is essential.
How myVal Helps You Stay Accurate
The myVal Inventory and Policy Health Check tools let you:
- Digitally record your home’s contents and updates.
- Instant documentation: Take a photo of an item; AI automatically identifies, values, and stores key details.
- Policy Health Check: Compare your belongings against your current insurance limits to find gaps before disaster strikes.
- Claim ready exports: Generate detailed, insurer-formatted reports in minutes after a loss.
By keeping your insurance aligned with real replacement costs, you protect both your property and your financial future.
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