Insurance Contents – New Zealand
Insurance contents New Zealand refers to the major types of polices one can chose between when purchasing home and/or content insurance in New Zealand. These types of policies are not much different than those in other countries, but it is helpful to be able to distinguish among them.
The first type is a Total Replacement Policy, sometimes referred to as a No Sum Insured policy. When your home is covered by this type of policy, the total cost of replacing it, including the contents, will be paid should it be destroyed. This policy not only covers the value of the home, but all costs and fees involved in replacing the home are covered as well. A total replacement policy can usually only be taken out on a newer home that is in excellent condition.
A Fixed Sum Insured Policy insures the home up to an agreed amount. This type of policy might be considered if a Total Replacement Policy is unavailable, and if the owner is willing to settle for something less than total replacement should the home and its contents be destroyed.
An Indemnity Policy is the third option. Here the coverage is based upon the market value of the home and its contents at the time it is destroyed. An indemnity policy therefore represents somewhat of a gamble.
As noted, it is helpful to be familiar with these three policy types. You might be able to select the one you chose, or your selection could be limited to one or two. This is one area where having a few quotes at hand can be of value. We’re here to help you get those quotes. They are free, and you have nothing to lose and a lot to gain. Our “Get a Quote” button on this page is there for your convenience. So why wait?