best insurance type

so i know there is an insurance thread in this part of the forum so i thought it would be most applicable place to post mine.

so its not about my insurance per say, more a general question. so i have 2 quotes, allianz and anz (who go through qbe)

so allianz asked me to give them a figure of what building estimate would be, where as anz just asked me a few questions like how many bedrooms, bathhrooms, is it brick, on slab etc.. and then gave me "full building replacement" coverage. the anz quote was a little bit cheaper.

my question is, is it better to have the coverage where i specify how much the building is worth or is the full building replacement better ?

i guess im wondering if the full building replacement is them trying to get away wioth it cheaper ifr any thing was to happen

 

You need to read and understand what is in the PDS for each policy.

• Does full replacement mean "like for like" or "like for somewhat similar"? eg they will rebuild a 3 bedroom one bathroom federation house/victorian terrace back to the original (outdoor dunny included) or will they whack on a project house which doesn't resemble the original?
• If they have insured the house for $X, will they make the offer to pay you $X (or less) and end their responsibilities under the contract?