The Pandemic, wars, and inflation are only three of the factors that have led to an increase in property construction costs in recent years. Given this, it is only natural that your home’s insured value would also be affected. After all, how could it not be impacted when the cost of concrete in 2025 was 26% higher compared to 2021, and the cost of cement 39% higher?

And yet, the question remains: how can you know whether your home’s insured value is sufficient?

A sufficient insurance value (sum insured) is one that reflects the current replacement cost of your home and protects you financially when a covered loss occurs. It ensures that, in the event of an unforeseen incident - such as fire, earthquake, flood, or pipe leakage, depending on the covers of your policy - the compensation can match the extent of the damage, in accordance with the policy terms.

To ensure that the insured amount remains adequate, you should review your home’s insurance value at least once a year, during policy renewal. At the same time, it is important to adjust the insurance value at any point during the year if a need arises before the next renewal.

The need to increase the insured amount may arise for various reasons, such as:

▪️Increased inflation (the continuous rise in the price level of goods and services based on the Consumer Price Index), depending on your policy’s provisions.
▪️Renovation or extension of the property.
▪️Installation of photovoltaic panels.
▪️Purchase of additional valuable items.

Likewise, a decrease in the insured amount may be needed, for example due to ageing of the building or its movable contents (e.g., equipment, furniture, and non‑built‑in appliances), or the transfer of valuable items (e.g., jewellery, collections) to a safe deposit box.

The insurance value applies to the items you have chosen to insure under the policy, such as the building, contents, and/or valuables.

Building:

The structure (excluding the land), including the main construction, garages and storage rooms of the same construction, as well as permanent installations and fixtures.

Contents:

Anything “movable” within the home, such as furniture, movable equipment, and electrical appliances, excluding built‑in appliances and valuables.

Valuable items:

Jewellery, watches, items made of precious metals, works of art, paintings, heirlooms, and collectible items.

Regularly reviewing your home’s insurance value is essential, both for protecting your property and for avoiding under‑ or over‑insurance, as this directly affects the amount of potential compensation.

Important Notice

This document is for informational purposes only and does not constitute legal advice.
Please inform the Company of any significant changes to the building or its contents that may affect the insurance value.
For full details, refer to your policy terms or contact your insurance advisor or our Call Center at 8000 8787.