What NZ Home Insurance Covers
What NZ home insurance policies cover depends upon the type taken out. In general most NZ homeowners take out a policy covering both the house and its contents. The Insurance Council of New Zealand has defined three major types of home and contents insurance.
When a house is new or under a certain age and in good condition, the buyer may qualify for a Total Replacement policy. Under this type of policy, if a house is destroyed, the cost of rebuilding it is completely covered. Not only are labor and materials covered, but any fees associated with rebuilding the house will be paid for by the insurance company.
If the buyer is not eligible for total replacement coverage, he will usually negotiate a Fixed Sum Insured policy. Under this type of policy, the cost of rebuilding a house that is destroyed will only be covered up to a previously negotiated amount. As one might expect, the higher the amount, the higher the premium will be.
Finally, an Indemnity policy may be taken out. This type of policy covers a house based on its market value at the time the house is destroyed. An indemnity policy can put either the insurer or the policy holder at some risk, since the market value can sometimes change drastically.
Whatever types of policies you are considering, we can help you by providing you with quotes from the major house insurance providers. In some instances you may want to get quotes for all three types of insurance to assist you in making a choice. In any event, having multiple quotes will be to your advantage. Just click on the “Get a Quote” button on this page, and we’ll take it from there. The quotes are free with no obligation.