Insurance

I have just built a new house and looking at insurance.
its made of stone and there lies the problem, i even have this issue with my current house. insured for 450k worth about 250k

being stone it increases the insured value by heaps.
the new house is only just built and cost about 300k to be built yet the insured value is 900k
they can drop it slightly but cant go much lower, i think its around 800k

is this not fraud of some kind as if it burnt down, cyclone etc i cant see them letting me have 900k to rebuild yet im paying a premium way above what i need to.

any decent insurance providers i should be looking at?

 

Why does the insured value need to be so much higher? I'm with AAMI and they just insure for "full replacement cost".

 

Why not just insure fir current replacement value?
Marg

 

that was the aami quote. either way full replacement cost to them would still be 800-900k mening my premiums are going to be the same anyway

the 3 insurers i have rang all say they have a range and it cant be insured above or below it.
will keep looking

 

Given that you have just built it, would you have a good idea on what it has cost from start to completion? If so, why not use this number, add an amount on for demolition, clean up costs, etc if you have a total loss and insure for this amount?

 

ended up going with RAA, they let me choose the amount i wanted to insure it for and didn't cost 3 times as much just because i put stone down as the building material.