New Zealand Home Insurance

When you are looking at insuring your home and its contents, you're actually looking at two separate insurance policies - one for the house and one for its contents, or the buildings and contents as they are more commonly known in the UK.

House Insurance

House insurance protects your property from sudden damage such as fires, earthquakes 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.

Contents Insurance

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.

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

New Zealand Home Insurance Top Tips

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

• Part of your premium house and or contents premium is automatically paid to New Zealand's Earthquake Commission or EQC to insure you for damage caused by natural disasters.
• Valuable objects such as jewellery, art and collections over a defined value need to be specifically covered by your insurer. You may have to pay for a New Zealand valuation of these items.
• 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 an alarm system.
• If you can, obtain a copy of your claims history from your UK insurer - this may help you to get favourable terms from a New Zealand insurer.

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.For more information on the home-buying process in New Zealand, see our Housing and Mortgages section.

The home insurance market in New Zealand is, as in the UK, quite competitive on price - the main difference seems to be in the level of service you receive. We’d be happy to recommend some insurance companies who have offered our clients an excellent level of service.

At Broadbase International we specialise in providing expert, impartial financial advice for Brits in New Zealand and Kiwis returning from the UK. Don't hesitate to contact us if you have any questions about insurance in New Zealand, and remember to ask for a free copy of our comprehensive New Zealand Guide.