How NZ House Insurance Works
NZ house insurance, sometimes referred to as homeowners insurance, typically covers more than the physical structure you live in. What you call home often includes a garage, perhaps a shed or two, maybe even a swimming pool, and possibly some fencing. All of these things, besides the house itself, are usually covered in a NZ house insurance policy.
Your house is of prime concern however, but what happens when your garage is detached from your house, sits on a lower piece of ground, and is flooded, with your car in it, because a water line running by your house bursts. Will a NZ house insurance policy cover that, assuming your house has suffered no damage?
It’s important when you are getting insurance to look into all aspects of what is and what is not covered by a given policy. There are many who have ideal policies who find that a particular situation, such as the damage to a carpet due to a leaking pipe, is not covered. Or, if you help your neighbor cut down a tree and it falls on your house, who is liable. Is anyone liable?
In other words, take some time to see how NZ house insurance policies work. In a typical policy, the accidental damage provisions cover just about everything. The important thing to know is what is not covered under accidental damage has concise and out there. If you live in a low-lying area susceptible to flooding, your policy may well stipulate that damage due to flooding is not covered. If you live on a hill, such an exclusion will not be noted. Normal wear and tear is the one exclusion noted in most accidental damage policies.
While the accidental damage segment of your policy may not be too lengthy, a defined risk policy can be quite lengthy indeed. A defined disk policy only covers those things that are specifically listed in the policy. As you may expect, defined risk polices are not all that common, and can take quite a bit of effort to put together. There may be instances when you would want such a policy however, so just knowing such policies exist is important.
There are also replacement and indemnity policies you need to be familiar with. These policies list the provisions that come into play if you were to lose the use of your home, because of a fire for example. Do you want to receive the market value of your home, the amount you paid to build your home, possibly adjusted for inflation, or the cost of replacement? This may be determined by the insurance company. Your policy may contain a combination of the above. The three are not the same, and consequently the premiums you would pay for each of them would be different. This is something you need to work out with your agent to see what makes the most sense.
We’re in a position to give you the quotes you need to see what will serve you best in terms of your NZ house insurance. Why not click on our “Get a Quote” button, and find out what we can do for you. There’s no obligation on your part whatsoever.