New Zealanders risk having their homes valued by unqualified surveyors as new companies take advantage of changes to insurance policies.

Small businesses have started up around the country claiming to provide “sum-insured” values, as home policies change from full-replacement cover.

“We are concerned that these so-called professionals have no training or qualifications in valuation or quantity surveying,” Property Institute CEO David Clark said.

“Worse, they may not carry professional indemnity insurance, giving you virtually no recourse in the event they let you down.”

Insurance Council of New Zealand Insurance Manager John Lucas says insurers offer online valuation calculators tailored to their policies.

“The council believes they should be fairly accurate, but often people want second opinions and we would be very concerned if homeowners were being duped by people who were not qualified,” he told insuranceNEWS.com.au.

“It can have devastating consequences if you are underinsured, and if you are overinsured you are throwing money away.”

Insurers have switched from full-replacement cover, which pays to rebuild homes with no upper limit, after a surge in claims costs from the Canterbury earthquakes.

The Property Institute and the Institute of Quantity Surveyors say they are working to ensure members can meet the demand for insurance valuations.

“New Zealanders need to have confidence in the amount they are insuring their homes for, and we strongly recommend they seek guidance from a qualified professional,” Institute of Quantity Surveyors Executive Director John Granville said.