Contents Insurance
Contents Insurance is a must in case your personal property is stolen, damaged, or lost. Contents Insurance will protect a great many things such as furniture, appliances, clothes, and ornaments. While it may seem to be an unwarranted expenditure, the price tag of buying back these things in the wake of a catastrophe is likely to run high quickly. Contents Insurance provides you with security for your possessions, thus the peace of mind, as you do not have to rebuild everything from the beginning.
Contents Insurance generally covers items when they are in your home or temporarily relocated elsewhere in the country.
Contents Insurance is available at different levels:
- Basic Policies: These policies tend to insure the “present value” of your property, or the cost to repair or replace an item in order to bring it back into a comparable condition. Some policies insure only those items damaged due to certain causes such as fire or theft and do not insure items taken temporarily out of your home.
- Comprehensive Policies: These provide both “replacement value” and “present value” cover (the expense of replacing or mending items to an as-new standard). They also include protection against accidental damage, rather than individual events, and give your Contents Insurance protection in the home as well as while temporarily moved away.
It is well worth reading carefully through the details of the policy, because what is covered in one policy will be an optional extra in another, or not covered at all. These include things such as credit cards, jewellery, keys and locks, professional equipment, and kit kept at home. Some insurers even ask for a valuation certificate for items above a certain level.
Excesses
When claiming under house or Contents Insurance cover, the customer will generally need to pay some of the repair or replacement bill. This contribution is referred to as the excess.
The standard excess for home and Contents Insurance Claims is usually in the range $250 to $400, but this varies by insurer.
It’s worth taking a moment before making a claim for a small amount, since it may cost you more premium and excess fees when your renewal comes around. Also, putting in a claim could result in you losing your no-Insurance Claims discount, saving you up to 40% on your premium, depending on your policy.
EQC Cover
Your home insurance NZ premium contains a charge that goes towards the Earthquake Commission (EQC). The EQC gives EQCover, which becomes payable following an earthquake or other natural disaster, though private insurance usually needs to be held in order to be eligible.
EQCover insures:
- Your home and Contents Insurance for damage.
- Your land beneath your home and up to eight meters from dwellings, including partial cover for access paths (but not driveway sealing).
- Some coverage for culverts, retaining walls, and bridges.