House and Content Insurance for Kiwis. 

House Insurance Accidental Damage Policies 

House insurance protects your property from sudden damage such as fire, earthquake and flooding. It usually also covers other buildings on your property, such as your garage and even fences. The most common kind of house insurance cover is accidental damage.

There are several different levels of accidental damage cover: 

• Replacement cover – Will cover replacing or repairing your house whatever the cost.
  This is the most popular house insurance.
  
• Sum-insured replacement cover – Will cover replacing or repairing your house up to a specified limit.
• Indemnity insurance – Covers your house for the market value. This is cheaper than replacement cover, but you will generally not get enough to rebuild a new house in the event of a full claim.

Many insurers also offer defined risks cover, when only a specific list of events is covered.

Content Insurance Policies 

Contents insurance covers your possessions, including your furniture, for sudden and accidental loss including burglary. Again, there are several different levels of cover, including: 

• New-for-old cover – Most of your possessions would be replaced by new items if lost or irreparably damaged.
  
• Indemnity cover – Your possessions are insured for their current, second-hand value.

You may be able to get cover for your possessions wherever you are in New Zealand, such as when you go on holiday.

Insurers often offer house and contents packages for people who own their homes and often offer discounts if you take several types of insurance from one insurer or for having an alarm. Some even offer no claims discounts if you do not claim on your policy for a specified length of time. 

What to Look for In Your House and Contents Insurance Policies 

Some things to look out for when looking at house and contents insurance are: 

• Valuable objects such as jewellery, art and collections over a defined value need to be specifically covered by your insurer.
  
• Electrical items (such as TVs, computers, cameras) also usually need to be specifically covered if they are over a certain value.
• Your home may not be covered if it is vacant for a certain time – usually well beyond the length of an average holiday.
• Some insurers offer you cover for the replacement of locks if your keys are stolen.
• Some insurers cover the cost of temporary accommodation if your house is uninhabitable.
• You may be able to secure a discounted insurance premium by opting for a higher excess. The excess is the amount you need to pay towards each claim.
• Some insurers offer compensation for gradual damage caused by leaking pipes.
• Sometimes "replacement" cover only extends to items under a certain age.
• You may qualify for a discount on your contents cover if you have and alarm system.
  

As with other types of insurance, it is important to understand the terms and conditions of your house and contents insurance and the exclusions.

When you are buying a house in New Zealand you need to have your house and contents insurance in place on the day when you move in. It is a good idea to get cover in place when you go unconditional, and have the policies starting from your settlement date.

  This article was supplied by Broadbase International Ltd (www.broadbaseinternational.com). Information contained in this article is of a general nature and is not intended as a substitute for professional advice based on your individual circumstances. Disclosure statements are available on request and free of charge.