New Zealand homeowners have a strong understanding of sum-insured policies after education campaigns on the switch from replacement cover, a survey shows.

About 66% of respondents are confident or very confident they have covered potential rebuilding costs, the Insurance Council of New Zealand (ICNZ) says.

Only 16% are not confident and 2% are unsure.

About 76% of home policyholders had no difficulty calculating their sums insured, while 54% found it easy or very easy.

“We’re satisfied that one year after the introduction of sum-insured [policies], many New Zealanders have clearly come to grips with the change,” ICNZ spokesman Samson Samasoni told insuranceNEWS.com.au.

“The industry has invested heavily in customer education and the process needs to continue, but after such a massive change to home insurance in New Zealand it would be totally unrealistic to expect that 100% of homeowners would find the transition straightforward.”

Questions on sum-insured policies were part of a wider ICNZ study in May.

The switch from total-replacement cover after the Canterbury earthquakes raised fears many homeowners would incorrectly estimate rebuilding costs, leaving them underinsured.

Renewal policies have included default sums, but homeowners must make their own assessments to reflect individual property features.

Mr Samasoni says ICNZ has worked with groups such as the Citizens Advice Bureau and Age Concern to educate consumers.

“The default sum is not going to be accurate for all, especially those houses with unique and special features or with difficult building sites,” he said. “The homeowner is best placed to know these things and to seek specialist help if needed.”