For most people, after your home, the contents inside it will be the most valuable assets you own. If the unforeseen happens and your home or its contents are stolen, damaged or destroyed, a good contents insurance policy is vital.
This guide will explain what you should consider to make an informed choice about the best contents insurance policy for you.
What is contents insurance?
Contents insurance covers the damage or loss of personal possessions like household possessions, clothes, appliances, furniture, carpets, or curtains caused by events like fires, floods, burglary or earthquakes.
If you are flatting or renting, it is a good idea to ensure your policy includes personal liability cover for damage to the property you live in.
Compare contents insurance policies with our top insurance partners.
Types of content insurance cover in New Zealand
As with all types of insurance, you should consider the type of insurance that suits your needs, and how much you want to pay for insurance.
Most contents policies will have limits on the amount you can claim for valuables, jewellery, money, documents and collections.
Levels of contents insurance cover include:
- Replacement cover – your insurance company will replace lost or destroyed items with a new one, or repaired it as new. There are some limits to this type of cover:
- Items over a certain age may not be replaced
- If you make a claim and you wish to receive cash, you may only receive the indemnity value
- There is an upper limit on what can be claimed for some type of items, this will be specified in the insurance policy as the "sum insured".
- Indemnity cover (present day value) – this type of cover pays however much the item was worth at the exact time of loss or damage. This means the items are depreciated based on age.
Compare contents insurance quotes with our top insurance partners
- At Money Compare we are here to help you make an informed choice about contents insurance – we work with some of New Zealand’s top insurance companies.
- We recommend requesting quotes from more than one provider, so that you can compare the costs side-by-side. State Insurance and AMI Insurance are a great place to start.
- Requesting a quote online is fast and easy – it only take around 10 minutes to collect two or three quotes.
- Switching insurers can help save you money – most insurance companies offer attractive deals for new customers.
- We recommend comparing insurance quotes and reviewing your policy every year to ensure the information in the policy is current, and that the cost remains competitive.
Tips to reduce your contents insurance premiums
- Maintain a good claims history: this may help ensure that you can get cover without additional terms like an excess. A good claims history can also help keep the cost of your insurance down, as some insurers base their pricing on number of claims.
- Compare several quotes: shopping around and comparing quotes can help make sure you get cost effective cover. Consider the cost of the policy, premiums, and the benefits included in the policy (more comprehensive policies cost more, but offer more comprehensive cover)
- Ask if a no claims discount is available: Some insurers offer a discount if you haven't made a claim, which could help reduce your renewal insurance premium.
- Increase your home security: some insurers will reduce your premiums if you have security alarms and smoke alarms installed, have locks that meet certain standards, install security lighting and use a safe
- Choose a level of cover that meets your needs and matches your budget
- Increase your excess: This is the amount of money you have to pay when you make a claim, before the insurer covers the rest of the cost. Increasing your excess sometimes results in your premium being refuced.
- Only add benefits that you need: as these will increase the cost of your insurance
- Pay annually: Paying for your policy annually instead of monthly, can work out cheaper. So it’s worth checking whether there is a price difference for paying annually.
- Ask about discounts for multiple policies: some insurers offer discounts for multiple policies with the same insurer (eg: car insurance or contents insurance), or for professionally installed security systems
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