Wellington apartment fire (renter, no insurance):
Total contents loss: $47,000
3-bedroom flat, lost furniture, electronics, clothing, kitchen items—everything
Had to start over with borrowed items and budget furniture

Auckland burglary (homeowner, underinsured by 40%):
Stolen items value: $18,500 (TVs, laptops, jewellery, bikes)
Insurance payout: $11,100 (due to underinsuring)
Out-of-pocket loss: $7,400
Average clause applied because sum insured was too low

Christchurch flood damage (family home, comprehensive insurance):
Damaged carpets, furniture, appliances: $23,800
Insurance payout: $23,800 (paid $250 excess only)
Annual premium: $780
30+ years of premiums paid for by single claim

Standard Coverage (Market Value)

What you get paid: Depreciated secondhand value only

Example: 5-year-old TV worth $1,200 new → paid ~$250-350

Best for: Very tight budgets, minimal belongings

Warning: In a total loss, you’ll receive far less than replacement cost—often leaving you $30,000-$50,000 short

Premier Coverage (Age-Based Replacement)

What you get paid: New replacement for items under 5 years old, market value for older items

Example: 3-year-old TV → brand new equivalent ($1,200)

Best for: Mix of new and older belongings

Value: Better than Standard but older items (5+ years) still only get depreciated value

Advanced Coverage (“New for Old”)

What you get paid: Full replacement cost regardless of age

Example: 10-year-old TV → brand new equivalent ($1,200)

Best for: Most people—best protection and value long-term

Recommended: Costs only 20-40% more but provides exponentially better claim outcomes

Real Claim Comparison: Total Loss Fire

Same household contents destroyed:

• Replacement cost to buy everything new: $68,000

• Standard coverage payout: $16,800 (shortfall: $51,200)

• Premier coverage payout: $38,500 (shortfall: $29,500)

• Advanced coverage payout: $68,000 (fully covered)

Premium difference: Advanced costs only $180-220/year more than Standard for this household

What Your Landlord’s Insurance Covers

✓ The building structure (walls, roof, floors)

✓ Fixed items (kitchen cabinets, built-in appliances, bathroom fixtures)

✓ Landlord’s liability

✓ Loss of rental income

What Your Landlord’s Insurance Does NOT Cover

✗ Your furniture, electronics, clothing

✗ Your personal belongings

✗ Damage YOU cause to landlord’s property (you need personal liability coverage)

✗ Temporary accommodation if you must move out

Real Renter Scenario

Situation: Electrical fault causes fire in Wellington rental, 3 flatmates lose everything

Total contents lost: $72,000 (3 bedrooms of furniture, electronics, clothing, personal items)

Landlord’s insurance paid tenants: $0

Outcome without renter’s insurance: 3 people started over with nothing, borrowed furniture, bought basics on credit

If they’d had contents insurance ($25-35/month each): Fully covered, received $24,000 each to replace belongings

The “Average Clause” Penalty

If you’re underinsured, your insurer will only pay a proportional amount of your claim:

Example:

• Your actual contents value: $90,000

• Your sum insured: $60,000 (underinsured by 33%)

• You have a $30,000 burglary claim

• You receive: Only $20,000 (shortfall: $10,000)

Why? Average clause formula: (Sum Insured ÷ Actual Value) × Claim = Payout
($60k ÷ $90k) × $30k = $20k

Why Compare With Us?

1. Do I need home contents insurance?

While home contents insurance isn’t legally required in New Zealand (unlike building insurance for mortgaged properties), it’s essential financial protection for anyone who can’t afford to replace all their belongings out-of-pocket.

You definitely need contents insurance if you:

• Rent or flat (your landlord’s insurance does NOT cover your belongings)
• Own your home (building insurance only covers the structure, not contents)
• Have accumulated more than $10,000-15,000 worth of possessions
• Can’t afford to replace everything if disaster strikes
• Live in high-risk areas (earthquake zones, flood-prone, high burglary rates)

Reality check: The average New Zealand household owns $60,000-$100,000 worth of contents. One fire, flood, or burglary could wipe out decades of accumulated possessions. Contents insurance costs just $2-4 per day—far less than the financial devastation of losing everything uninsured.

2. What does home contents insurance cover?

Contents insurance covers your personal belongings inside (and around) your home against loss or damage from covered events. This includes:

Standard covered events include: Fire, theft/burglary, storm/flood damage, earthquake, vandalism, water damage (burst pipes), accidental damage (if included), and natural disasters.

Additional benefits: Most policies also include temporary accommodation (up to $20,000-$30,000), personal liability ($2 million+), food spoilage, and removal/storage costs if your home becomes unliveable.

3. Does my landlord’s insurance cover my contents?

NO. This is one of the most dangerous misconceptions in New Zealand.

What your landlord’s insurance DOES cover:

• The building structure (walls, roof, floors, fixed items)
• Landlord’s fixtures and fittings
• Landlord’s liability
• Loss of rental income

What your landlord’s insurance does NOT cover:

• YOUR furniture, electronics, clothing, and personal belongings
• Damage YOU cause to the landlord’s property (you need personal liability coverage)
• Temporary accommodation costs if you must move out

4. How much contents insurance do I need?

Your sum insured should equal the total replacement cost of ALL your belongings if you lost everything in a fire or natural disaster. Most New Zealanders dramatically underestimate this figure.

Typical contents values by home type:

Best practice: Use a contents calculator (free online), go room-by-room, add 10-15% buffer, and review annually. When in doubt, round UP—better to be slightly over-insured than severely under-insured.

5. What’s the difference between Standard, Premier, and Advanced contents insurance?

The biggest difference is how much you’re paid in a claim—not what events are covered, but whether you get depreciated value or full replacement cost.

6. How much does contents insurance cost?

Contents insurance costs vary based on your sum insured, coverage level, location, and excess chosen. Here are typical annual premiums:

Cost per day: Average family home with Advanced coverage = $2.74-$3.97/day

Ways to reduce premium: Increase excess ($500 vs $250 saves 10-20%), multi-policy discount (bundle with home insurance saves 10-25%), security features (alarm, deadlocks save 5-15%), compare providers (same coverage varies 10-30% between insurers).

7. What’s NOT covered by contents insurance?

Understanding exclusions prevents claim disappointments. Common exclusions include:

Also excluded: Mysterious disappearance (item missing, no evidence of theft), war/nuclear events, illegal activities. Note: Accidental damage may be excluded or optional—always verify before buying.

8. Are earthquakes and natural disasters covered?

Yes, natural disasters are covered by NZ contents insurance policies. This includes earthquakes, floods, storms, landslides, volcanic activity, and tsunamis.

Important distinction for homeowners:

• Building/home insurance: EQC/NHC (Natural Hazards Commission) covers the first $300,000 of earthquake damage to your home structure. Your private insurer covers the rest.
• Contents insurance: Your private contents insurance covers ALL damage to your belongings from natural disasters—there is NO EQC/NHC coverage for contents. This is why contents insurance is essential.

Coverage includes: Damage to furniture, electronics, appliances, clothing, and all personal belongings caused by earthquakes, aftershocks, floods, cyclones, landslides, or any natural disaster event. No separate earthquake policy needed for contents—it’s automatically included in all NZ contents insurance policies.

9. What are specified items and do I need them?

Specified items are high-value possessions that exceed your policy’s sub-limits and need to be individually listed on your policy with their own agreed values.

Common sub-limits in NZ policies:

• Jewellery & watches: $5,000 total (or $2,000 per item)
• Artwork & paintings: $2,000-$5,000 per item
• Bicycles: $2,000 per bike
• Musical instruments: $3,000 per instrument
• Camera equipment: $5,000 total
• Cash: $500-$1,000
• Sports equipment: $2,000-$3,000

You should specify items when:

• Single item value exceeds sub-limit (e.g., $3,000 engagement ring when limit is $2,000)
• Total value in category exceeds limit (e.g., $8,000 in jewellery when limit is $5,000)
• You want “all risks” coverage including accidental loss/damage
• You want worldwide coverage (many specified items covered globally)

Benefits of specifying: No sub-limit applies (full agreed value covered), often covers accidental loss/mysterious disappearance, worldwide coverage even away from home, no depreciation disputes (agreed value). Cost: Usually small additional premium based on item value.

10. Are my contents covered away from home?

Limited coverage is usually included for contents temporarily away from your home, but conditions and limits vary by policy.

Typical “away from home” coverage:

• Limit: Usually 10-20% of sum insured or specific dollar amount ($5,000-$10,000)
• Where: Within New Zealand only (overseas requires travel insurance)
• Duration: Temporary only (e.g., 60-90 days maximum)
• Conditions: Must be in secure location (locked car boot, hotel safe, locked office)
• Events covered: Same as home (fire, theft from secure location, accidental damage if included)

Common scenarios:

• ✓ Laptop stolen from locked car boot while at work: Usually covered
• ✓ Items in storage unit while moving house: Often covered (notify insurer)
• ✓ Student belongings in university halls: Covered under parents’ policy (if main residence)
• ✗ Items stolen from unlocked car: Usually NOT covered
• ✗ Items permanently kept at second property: Need separate policy
• ✗ Items taken overseas: Need travel insurance

Best practice: Check your specific policy wording for “contents away from home” or “temporary removal” sections. If regularly carrying valuable items (laptops, cameras), consider specifying them for comprehensive coverage including away from home.

11. What is an excess and how much should I choose?

An excess (also called deductible) is the amount YOU pay toward each claim before your insurance covers the rest. For example, with a $500 excess and a $3,000 burglary claim, you pay $500 and the insurer pays $2,500.

Common excess amounts in NZ: $0, $100, $250, $500, $750, $1,000

How excess affects premium:

Choosing your excess: Higher excess = lower premium but more out-of-pocket per claim. Choose the highest excess you could comfortably afford to pay in an emergency. Golden rule: Don’t choose excess higher than your emergency fund. If you have $2,000 saved, $500-$750 excess makes sense. If no emergency fund, stick with $250 or less.

12. How do I make a contents insurance claim?

Follow these steps for smooth claims processing:

Timeline: Simple claims processed in 5-15 business days. Complex claims may take 4-8 weeks. Important: Don’t repair or replace items without insurer approval first—this could void your claim.

13. Can I get contents insurance if I’m flatting or renting?

Yes! In fact, renters and flatmates are the people who MOST need contents insurance because they have no other protection for their belongings.

Options for renters/flatmates:

Students in university halls: Often covered under parents’ home contents policy if hall is temporary residence. Check with parents’ insurer to confirm. If not covered, get your own policy—many halls require proof of insurance.

What to insure as a renter: Only YOUR belongings (furniture, electronics, clothing, etc.). Don’t include landlord’s property (building, fixed appliances). Use contents calculator selecting only YOUR rooms and items.

14. Should I combine home and contents insurance with one provider?

Combining home and contents with one insurer often provides benefits, but always compare to ensure you’re getting the best overall value.

Benefits of bundling home + contents:

• Multi-policy discount: Save 10-25% on combined premiums
• Single excess: Pay only ONE excess (the higher) when claiming on both policies for same event
• Administrative simplicity: One insurer, one renewal date, one point of contact
• Easier claims: No disputes between insurers about what’s building vs contents
• Package pricing: Often cheaper overall than two separate insurers

When to consider separate insurers:

• One insurer significantly cheaper for home, another for contents
• Different coverage needs (e.g., want premium contents coverage but basic home)
• One insurer won’t insure your home but will do contents
• Better specialist coverage from different providers

Important note for renters: You only need contents insurance. Building insurance is your landlord’s responsibility. Never pay for home insurance as a renter—it’s wasted money.

Best approach: Get quotes for bundled home+contents AND separate policies. Compare total cost including discounts. The bundled option is usually 15-30% cheaper overall, but always verify with actual quotes.

15. How often should I review my contents insurance?

Review your contents insurance at least annually, and immediately after major life changes. This ensures you’re properly covered and getting the best value.

When to review and update:

Why this matters: Underinsuring by even 20% means average clause reduces ALL claims proportionally. Overinsuring wastes money on unnecessary coverage. Regular reviews ensure you’re paying for exactly what you need—no more, no less.

Best practice: Set annual calendar reminder for 1 month before renewal. This gives you time to compare quotes and make changes before automatic renewal kicks in. Most New Zealanders who shop around save $200-$400 annually on equivalent coverage.

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