Insurable value of work (sometimes called the market value)
The insurable value of work (sometimes called the market value) is the reasonable cost of having the work carried out by a licensed contractor on the basis that all materials are to be supplied by the contractor, whether or not the work is carried out on this basis, e.g. if you enter a contract with a licensed contractor to renovate your kitchen, but you buy the cabinets for the contractor to install, the insurable value of the work must still include the cabinet value.
The value of work includes the market cost of:
materials (i.e. the value of materials bought new, even if you are getting them for free or second-hand), including GST
labour (provided by a certified contractor, even if you are getting the work at a discount or for free), including GST
QLeave levy for projects costing $150,000 or more.
The value of work excludes the cost of:
the home warranty insurance premium.