New sum insured tool
13 Sep 2017
AA Insurance has invested in CoreLogic’s Cordell Sum Sure, an automated reconstruction-cost estimation tool that provides a fast, fact-based figure with minimal input from homeowners.
Sum Sure replaced the existing Cordell online calculator and is now available to AA Insurance customers.
According to AA Insurance, the new tool will give customers added confidence in their home insurance estimate.
“While most of our customers have adjusted well to sum insured, some have found the process time-consuming and overly complicated,” AA Insurance Head of Product Aaron Dickinson said. “As confirmed by an internal audit, we discovered a small number – mainly in homes built before 1940 and outside the main centres – were still mistakenly considering the purchase price, or real estate market value of their home as the basis for their sum insured. While this group accounted for fewer than one percent of all customers, we were concerned any misconception could result in their homes being unwittingly underinsured.”
Sum Sure works like a council rates website, whereby typing in the property address brings up information about the house, like its age, size and construction materials, Dickinson said.
“You simply go through each section to make sure it’s correct, before receiving an estimated reconstruction cost that includes a breakdown for demolition and site clearance costs, as well as required council permit and professional fees,” he said. “The whole process generally takes less than five minutes.”
Cordell Sum Sure, which offers database for home reconstruction costs, is free to use and works well for standard homes, Dickinson said.
- Insurance Business