Tonight ` Do you want to know the number we came up with? Do you want to know the number we came up with? Go on. how much is your home really worth to you? Wow. (PLAYS CLASSICAL TUNE) Why is this cellist cracking up? Heat cracks. What's with that? And ` A lovely little ticket sitting on my windscreen. Signs in! I was holding off paying it, because it felt so wrong. Welcome to Fair Go. It's one of the biggest changes ever to insuring your home ` you have to figure out what rebuilding will cost. It happened two years ago, but too many are still getting it wrong ` and we are talking catastrophically wrong. Hannah got the experts in to show you what you might be missing. We're checking out two different houses and finding out that both homeowners got their sums and their insurance cover badly wrong. Bit of a shock? Bit of a shock? Yeah. It is, for sure. So big surprise for you. So big surprise for you. Big surprise, yes. First up, this is Dean. His other job today is working out how much his house is worth. Sound easy? I guess I'm not sure what information is important in order to get the right value. Take Dean's garage ` what's the rebuild cost? 20,000? Dean's property is historically listed, so his new garage and laundry had to be fully lined, fully insulated, just like the house. Yeah. I'm sure that garage cost more than most that are on the market. Yeah. I'm sure that garage cost more than most that are on the market. < (LAUGHS) Oh, big hint there, Dean. 30,000? 40,000? We'll tell you a bit later. Uh, check the sum insured. Point is this is what Dean's been doing ` guessing, using several online calculators, to work out his insurance cover ` what's his house worth? What's the cost of a rebuild? Quite honestly, I don't even know the size of the house. Quite honestly, I don't even know the size of the house. What's your guess on that, then? 180m2, which I think is... Well, I've got no idea. What Dean does know is that a heritage house is tricky to replace ` kauri floors, feature ceilings, solid doors and windows, all those period features and... Decking. We have a split-level deck. Which cost more to replace than a single flat deck of the same square meterage. So your house has actually got quite a few fish hooks in it, then? So your house has actually got quite a few fish hooks in it, then? We sure do, yes. And those fish hooks, those special features, are causing real problems. Dean's tried several websites, including... and... He's come up with wildly varying rebuild costs. But again, I may have put some wrong information in, but I'm not sure, and that's the problem, and that's the whole thing with the insurance industry ` all they've done is put the whole responsibility back on the consumer. Which is why Dean's asked quantity surveyor Andy Thomson to check out the house and grounds. Andy's job is to pick up what the lay person might miss, like the chimney, a major rebuild expense ` and what about the driveway and the fancy fence? The driveway's exposed, so it's exposed aggregate. It's not a normal concrete driveway; it looks a bit more prettier. Um, you look down and see it's got palisade fencing all the way round. People just think it's just the house itself, and they don't think about the money they've spent outside, and a lot of people spend a lot more money outside than they do in the property. And tell me about the skirtings. And tell me about the skirtings. The skirtings are higher than normal,... Now, normal skirtings are about 100ml deep; these skirtings are 400ml to 500ml. ...which you don't get in a normal house, and the ceilings are all lined. You can see they're amazing-looking. That's over and above a normal property. The first surprise for Dean ` how wrong was his guesswork on the size of the house? Uh, I had a guess of about 180m2. We got a measure of 137m2. < Wow. So Dean's 180m2 guess, used with three different online calculators, came to... 850 was the top, 650 was the middle one, and 350 was the low one. With Andy's measured 137m2, he also did an online calculation. We got 665,000 from the online calculator. And then Andy did his own sums based on his visit to Dean's house. Do you want to know the number that we came up with? Do you want to know the number that we came up with? Go on. Hit me with it. (READS FIGURE) Wow. That's more like it. Yeah. What a difference. Yeah. It's a big difference. Yeah. It's a big difference. Major difference, yeah. And plus GST, comes to just over a million. And plus GST, comes to just over a million. Wow. Yeah, that is a real concern. I think we need to be adjusting ours. I think so. I think so. (CHUCKLES) I own my own home. It's my treasure. I work really hard for it. I've made it better. Like Dean, Rhondda wants to get her insurance cover just right. She lives down a shared driveway in a two-storey house on poles right by the railway track, so she too has special features. I want to know that when I go to get it` if I have to rebuilt, I can go along and say, 'This is correct. This is the money that I want to be paid out, please, to rebuild it.' That's nought, and that's a nought. Rhondda also used an online calculator to work out an insurance figure, but, like Dean, she found... This tool is only as good as the info you put into it. The info you have. Would that be right? Absolutely. That's the impression I have. This bit about, um, unique attributes of your home ` what does that mean? For example, is Rhondda's driveway a moderate or steep slope? I only know what I know, and I don't know what I don't know. And do you think you got it right? And do you think you got it right? No, I don't. I think it was definitely more than I'm insured for, and so I was pleased about that. At the end of the day, why don't I just go get someone qualified to do it? And here he is, giving Rhondda's place a damn good eyeballing. What's the cost of replacing retaining walls? The value of improvements, like this balcony? The cost of the decks, the stairs, the whole pole-house construction? There aren't too many fancy-dancy heritage features here. TRAIN ENGINE ROARS This is a standard build. It's the same as probably 80% of houses in NZ. It's a standard construction. But this place has its own fish hooks. It's a steep slope right down to the railway line. You have to factor it being a steep build and a steep demolition. And the trains ` a rebuild should include sound-proofing. So, how right or wrong did Rhondda get it? So, Rhondda, the` the numbers you got from the online calculator, what` what number was it? I got but 199,000, I think. Andy's figure for a rebuild... Um, the number that we have got is... Oh my goodness. So it was well worth the exercise. So it was well worth the exercise. Definitely. So, you're feeling, um, more confident about your precious asset now? I am. I'm very confident. In fact, this afternoon I might go straight down and change the insurance. But we've saved perhaps the biggest surprise till last. We also did a default sum on it. The default sum is what the insurance company will give you if you don't do your own sums and don't put in your own estimate. Most of us are still getting these default valuations. Now, Andy figured Rhondda's rebuild at $374,000. The default figure is... Comes out at... That's quite different. And then we used a default sum. > And Dean's default sum on his million-dollar home? We used $2000 a square metre, and we got... Really? Yes. I think that might be a little low. (CHUCKLES) Do you think $275,000 will rebuilt your property? Do you think $275,000 will rebuilt your property? It might rebuild the garage. Ah, the garage. What's it cost? 50m2 of high-spec build costs... Having gone through the process, what would your advice be? For me, it's get an expert. When you're dealing with, you know, the biggest asset that you own, you don't wanna rush it, and you wanna make sure it's right. For Rhondda, who now knows what her property would really cost to rebuild... It made me pay attention to my house. It made me learn a lot more about my house than I actually knew before. The implications of getting it wrong are huge, so, um, do all you can to get it right is what I think. Yeah. So, what should you do? If you think, like Dean and Rhondda, that your property's got some special features, then get an expert in. A qualified surveyor, like Andy, will cost $500 to $1000 or more. If you use a builder, make sure they're across current rebuild costs. If you're doing it yourself, Hannah's put those online calculators and some tips on our website. Look under Links and Info. Interestingly, Rhondda, who doubled the cost of her rebuild, is only paying an extra $6 a month in premiums. Now, our Big Money Quiz Challenge is reaching its climactic stage ` 10 bucks on the line for the most right answers in our consumer quiz. Think you're savvy when it comes to consumer issues? We put it to the test. Over the past few weeks, we've rolled out six true/false questions, stopping random people in the street and offering them 10 bucks if they could get at least five of them right. This is their final chance to win the cash. If your credit card is stolen, the bank will always refund your money. Um, true. Mm, doubt it. Mm, doubt it. Hmm. BOTH: False. I'm gonna say false as well. False. True. Probably false. False. False. False. Whoa, pretty confident there, but do we have a winner? Find out later in the show. Oh, I'm sure the suspense is killing you, isn't it? We'll have that for you later. Now, my hometown, Wellington, on a fine, calm day, the Hurricanes blitzing it at the stadium... The capital sunshine can do extraordinary things. So the sun can break people's windows? Did it break this $1000 double-glazed beauty of a window? This is a heat crack, so your insurance policy doesn't cover that. Heat cracks ` what's with that? And later... Signs in! We take safety at schools very very seriously. I was pretty ticked off that I had to pay something I didn't do. Welcome back. So, you spend good money ` very good money ` on double glazing. Is it acceptable for your expensive window to crack from sunlight? Here's Garth. (PLAYS CLASSICAL TUNE) On a clear day in Wellington, you can see for miles, and the view's worth it. While I'm soaking up the sun out on the deck ` yes, they do get plenty here ` Roger Brown has his back to the harbour. You're always looking for clarity. Roger has spent thousands of hours at the cello, polishing his performances for the NZSO. He played on some of the Lord of the Rings soundtracks too. But there's another reason he isn't taking in the vista ` Roger has a crack in his window ` his $1000 floor-to-ceiling double-glazed UV-laminated window. This is a very s` very sunny location. I mean, you know, that's North, and the sun goes... (CLICKS TONGUE) over there. The crack showed up almost overnight with no explanation. I went to my insurers, and they sent an independent glass assessor around, who said, 'Oh, no. This is a heat crack, so` so your insurance policy doesn't` doesn't cover that.' Heat cracks? What's with that? You buy a pair of sunglasses, you expect them to handle the effects of the UV and the` the harsh rays of the sun without cracking. Why is glass any different in a window? Roger's insurer wasn't the only one refusing to crack. The company who sold him the double glazing has changed hands, so no liability there. The law says you can go to the manufacturer with a fault, and this looks a pretty faulty window. But... Just said, 'No, no, this is heat crack; um, the warranty doesn't follow for this,' and` and walked off. I've looked at the warranty, and it says, you know, there` there is an exemption for heat, but, I mean, you know, I haven't had a blow torch on it. This is what happens when you do apply the blowtorch under a high-speed camera in laboratory conditions, and this is what happens when you ask a top scientist, 'Are heat cracks a thing?' OK, so I'm gonna give you a normal piece of glass, and I'm gonna get you to apply some mechanical force. This is what the glass would be going through inside the frame when it's trying to expand. It doesn't spontaneously crack or break. What we've done is put a little chip on this glass right at the corner where the frame might be ` could be caused by debris. Do the same thing. could be caused by debris. Do the same thing. Whoa. I` I just breathed on that. And it instantly cracks ` a little bit of sunlight trying to expand from the thermal coefficient of expansion, suddenly it spontaneously causes this crack and breaks. So the sun can break people's windows? Heat changes can break people's windows, yes. Really hard to prove where glass breaks from unless there's an obvious defect. Everything starts from it's weakest point, and glass has lots of natural defects, just because of the way that it's made. Thanks, Nano Girl. Now, let's see if we can have another crack at helping Roger. The company that had sold Roger his windows had changed hands; the manufacturer effectively didn't wanna know, and what about the insurer? Well, they'd said 'go away' as well. We asked them to reflect on that. Vero insisted that because Roger's window had cracked because of 'thermal stress', that wasn't a 'claimable event' under his policy. However, they'd taken their time getting back to him and would make a goodwill gesture of $500 towards the cost of a new window. That's only half the price of a replacement, but here's where Roger's luck really turns ` the country's biggest manufacturers of double glazing heard his story and offered a deal ` and a tour of their Wellington factory. Double glazing is booming. It's now practically compulsory in all new homes. You can avoid fitting it, but the cost of meeting building code for insulation any other way is usually more expensive. With all that double glazing going in, those heat cracks, though, could be a bigger problem. Metro's answer is to bake in the stress of the break before it happens. This furnace heats the glass to make it less likely to suffer a thermal fracture ` the School of Hard Knocks for your windows. They're also taking a good look at Roger's crack. This window wasn't toughened. There's no sign of an obvious defect, though. There's nothing Roger could have done about this? No. Nothing as a homeowner and, obviously, due to the condition of the edge, nothing as a manufacturer that could have been done to eliminate the issue. It was just a unique set of events on a` on a given day um, which` which elevated the stress to a level which caused the crack. So you'd expect that maybe an insurance company would pay out. Uh, yes, that would be our expectation. Ultimately, that's what you have insurance for ` is those` is those sort of freak` freak events. Despite the goodwill payout, Vero is standing firm. Its policy excludes losses arising by 'defect in design' or 'inherent fault', and since we now know glass is inherently faulty, that's a big loophole that won't be closing soon. So what can you do? A couple of key things is not` not have furniture, moveable furniture, stacked up close to your glass. Um, you know, with your curtains, it's a tough one, but, ideally, if your curtains are either closed or open, not part way down. And buy your windows from a professional who'll design them to handle the stress so that you don't have to. So glass is inherently faulty ` seems problematic. (CHUCKLES) Big thanks to Metro Glass and Dr Michelle Dickinson ` Nano Girl ` for helping us get our heads around that problem. Now, you know you are right, you are sure you're right,... ...and they are simply straight-out wrong. Signs in! You are dealing with` with children, and safety is paramount to us. I was pretty ticked off that I had to pay something I didn't do. I was holding off paying it, because it felt so wrong. And this guy. 10 bucks. Oh, give it to someone else. I'll donate it to charity on your behalf. I'll donate it to charity on your behalf. Yep. Do that. You're a good man. Thank you very much. Congratulations. You're a good man. Thank you very much. Congratulations. Cheers. See you guys. Welcome back. What is the right answer to our final street quiz challenge? Yes, and who's the big winner? If your credit card is stolen, the bank will always refund your money. BOTH: False. That's right. There's no absolute guarantee you'll get your money back if your credit card is stolen. Banks typically cover any loss if you've taken reasonable care of your card and your pin number, but you have to report any loss to them promptly. And that wraps up our first consumer street quiz. Bet you're wondering if anyone won this 10 bucks, right? Well, we did have one winner ` this guy. He got five outta six right. Pretty impressive. 10 bucks. Oh, give it to someone` some else. I'll give it to charity on your behalf. I'll give it to charity on your behalf. Yep. Do that. You're a good man. Thank you very much. Congratulations. You're a good man. Thank you very much. Congratulations. Cheers. See you guys. 10 bucks for a charity. So, who` who was this guy? We don't know his name, but he was a nice guy. We don't know his name, but he was a nice guy. Yeah. A lovely gesture. Now, this is a parking ticket. This is wrong ` well, one like this was. It should not have been issued. It is an ex-parking ticket, and the motorist told council they were wrong. 'No, we're not,' they said. Oh yes, they were. HUBBUB School's out, and it's traffic madness. Keeping our kids safe outside school is a big deal for schools, parents and the authorities. Signs in! Auckland Transport has a strict zero-tolerance policy for parking infringements outside schools ` and good on them. We take safety at the school` at schools very very seriously. Uh, you're dealing with` with children, and safety is paramount to us. I was pretty ticked off that I had to pay something that I didn't do. Pukekohe mum Tamar Hunter is very careful about safety and about where she parks. Good girl. Come on. Late last year she came back to her car and found... A lovely little ticket sitting on my windscreen. (CHUCKLES) A lovely little ticket sitting on my windscreen. (CHUCKLES) What was it for? For parking on or near a pedestrian crossing. Well, fair enough, too, if she was in the wrong. She was parked right there next to us, and, yes, that is next to the pedestrian crossing, but it's which side of the crossing that counts. You're not allowed to park within 6m of the approaching side of a pedestrian crossing ` Which is... Which is... ...the other side, so I felt I was in the right. And we agree. The Road User rule 6.5 seems pretty clear ` you can't stop or park within 6m of the driver's approach side of a pedestrian crossing. The driver's approach side, says the law; the near side, says Auckland Transport. Well, Tamar wasn't here, the near side; she was over there, the far side. I was holding off paying it, because it felt so wrong. Yeah. And she appealed her ticket to Auckland Transport. Then they sent me a letter back saying that I still have to pay the infringement. They basically said they're right, and you're wrong. They basically said they're right, and you're wrong. Yeah. Now, for some of you, this may seem a bit like an old comedy sketch ` BELL RINGS a Monty Python sketch. Hello. I wish to register a complaint. If you're my age, you might almost know this by heart. I wish to complain about this parrot what I purchased not half an hour ago from this very boutique. Oh, yes, the Norwegian Blue. What's wrong with it? I'll tell you what's wrong with it. It's dead ` that's what's wrong with it. Nah, nah. It's resting. Look. BELL RINGS I wish to register a complaint about this here parking ticket. Ooh, parking within 6m of the approach side of a pedestrian crossing. Nasty. What's wrong with it, sir? What's wrong with it? It's wrong ` that's what's wrong with it. What's wrong with it? It's wrong ` that's what's wrong with it. Oh, no, no. It's the Land Transport Road User Rule 2004, Section 6.5. Beautiful legal drafting. The drafting's got nothing to do with it, my lad. This is wrong. No, no, no, sir. We wouldn't do that to you. Trust me. HORN BLARES THEATRICALLY Thanks to Simon Dallow, and apologies to Monty Python, but sometimes dealing with the Council can be a bit like a comedy sketch ` it certainly was for Tamar Hunter. Um, in this particular instance, the warden has interpreted the rule that applies for parking at a pedestrian crossing incorrectly. Auckland Transport can see a great deal here at their Operations Centre. They couldn't see that Tamar was right, and they were wrong. Yep. Well, unfortunately, we got it wrong, not only the first time with the infringement; we got it wrong the second time when it came to adjudication as well. OK, so the ticket was issued wrong, but then it was appealed and adjudicated, and they got it wrong again. Now, we think that's a worry. We, unfortunately, had quite a new adjudicator that was looking at the issue when it came back in from the customer, and they also interpreted the rule wrong, so, unfortunately for us, it was a bit of a perfect storm and we got it wrong twice. After we raised the matter, they apologised to Tamar and cancelled the ticket. < So, how satisfying was that to win? Oh, very. (LAUGHS) I was ecstatic (LAUGHS) But how many others has Auckland Transport got wrong? AT's issued about 1.6 million tickets in its four-year life. About 60,000 appeals are considered each year by a team of 10 adjudicators. Their work is audited, and AT says the error rate is about 0.1%. I'm very confident, and I think viewers can be very confident that we actually have a very robust process in place. Hopefully if people see this, then they know they can actually fight for` if they think they're right, they can actually fight for it. Yeah. Go, Tamar. Yeah. Go, Tamar. Yes. So the adjudicators can get it wrong on rare occasions, but if you really, really, really think they're wrong, stick to your guns ` and be nice to parking wardens; they are just doing their job. Yes, that's right. Well, that is the show for this week, but we are on Facebook for the next half hour to answer your questions. Any problems, any thoughts, we would love to hear from you. We're on Facebook. Email us... Write to us... And next week ` We're all very disappointed. THE ROLLING STONES' 'SATISFACTION' PLAYS I can't get no satisfaction. Did you try? Yeah, I tried. Did you try? Yeah, I tried. We can't get none. I'd gone and purchased the tickets, and we arrived, and, uh, yeah, no view at all, really, so I was` I was a bit embarrassed, cos, uh, yeah, it looked like I'd bought the cheapest tickets, but it wasn't really the case. That's next week. Goodnight. # Oh yeah. Satisfaction. #