03 Mar 5 Cool Things Worth Knowing About Contents Insurance
Depending on what you own and what you can afford to replace in the event of a loss, content insurance can be a cost effective addition to your home insurance policy. It covers things like furniture, electrical appliances, clothing, jewellery and computers, even carpets and curtains. In fact, just about everything you own inside your home. Some items, such as jewellery, may have limited cover unless you specify them on the policy.
Unlike home insurance though, which your mortgage provider will require to protect their security, content insurance is optional. But when disaster strikes or your home is burgled, having content insurance in place can prove beneficial. If you’re considering adding content insurance, be sure to check your policy for these 5 cool things.
1. New for old
These days, most content insurance policies include a “new for old” clause. That means any of your items covered under the policy that are lost, stolen, or damaged beyond repair, can be replaced with brand new products of equivalent value, no matter if you’ve owned it for three years or three days.
Certain items – like clothing, bedding, footwear or cosmetics – that don’t have a suitable replacement value, may be excluded from the new for old rule as they have a limited lifespan. The insurance cover on these items is usually reduced to allow for wear and tear, and is generally settled at the market value. That means your insurer pays out based on the cost of the item at its current age, not a brand new one.
When deciding how much cover to buy under your content insurance policy, work out the cost of replacing all you own in your home to ensure you’re covered up to a level that allows you to replace everything in the event of a total loss. As different insurance providers use slightly different methods to calculate new for old, it’s worth checking the fine print carefully, or talking to an Insurance Adviser like those at Max Insurances – so that you understand exactly what type of cover you’re getting and how much you’re covered for.
2. Cover for food spoilage
An appliance breaking down – like your fridge or freezer – is not only a huge inconvenience, it can be costly too. Especially if you’ve just stocked up at the supermarket! It doesn’t take that long for food to spoil when you lose power to your fridge or freezer. In fact, it can take only a few hours.
With content insurance in place, if this happens to you, you can claim the cost of replacing any spoiled food. Some insurers even include reasonable costs to pay for fridge or freezer cleaning so you’re not left with that dirty job!
If your content insurance policy includes cover for food spoilage, and you want to make a food spoilage claim, it’s a good idea to take pictures of the food before you throw it out, and submit receipts of any food you’ve recently bought to go with the claim. The more information you present, the quicker your claim can be processed.
3. Liability for accidental damage
Damaging someone else’s property could mean paying for the damage out of your own pocket if you don’t have insurance cover in place. Like accidentally breaking a window in a flat you’re renting. Or accidentally dropping your flatmates’ laptop. The cost of paying for that damage could easily outweigh the cost of your content insurance.
If you damage someone else’s property, and you’re liable for the cost to repair or replace those items, your content insurance could cover you in this situation. Depending on the type of cover you need, liability for accidental damage may be included in your policy.
4. Cover for just your belongings
Whether you’re flatting with friends or renting your own place, content insurance can help you protect the things that matter most to you without having to cover the whole household.
If you choose content insurance cover, only your contents are covered by your content insurance policy. That means your flatmates and the items you share in a flatting situation are not included in your policy. So you’re not paying a premium for them. An easy way to work out how much content insurance you might need, is to walk through the rooms in the house you live in and list all of the things you own. Then calculate the estimated cost to replace each of those items.
Your NZ Insurance Adviser – Max Insurances – specialises in helping Kiwis arrange Insurance NZ wide and can help you decide which items to include in your content insurance policy so you have peace of mind knowing you’re covered for the cost of repairs or replacement if something unexpected happens to your personal possessions.
5. Protection when you move
Moving home can be stressful. And even more so if your personal possessions are damaged while in transit or storage. When you move home, it’s a good idea to check your content insurance covers your possessions during transit or storage. Many content insurance policies cover sudden or accidental loss or damage to your content while in transit between homes, and some provide cover while your items are in a secure storage facility for a set period of time.
Save on your content insurance
When it comes to content insurance – like all insurances – it pays to compare prices and policy inclusions and exclusions. Working with a NZ Insurance Adviser like those at Max Insurances, means you get access to a wide variety of insurance options. And because not all insurances fit all situations, at Max Insurances, we work hard to match you up with the right insurance cover. Because when things go wrong, there’s nothing worse than trying to navigate your way through complicated insurance policies or tricky terms and conditions. At Max Insurances, we are also there to help you during claim time.
If you think content insurance is something you’d like to add on to your existing home insurance policy, or you’re looking for stand-alone content insurance cover, contact our team of Insurance Advisers today to speak to someone who understands how important insurance cover is.
Request a Call Get a QuoteFind this article helpful? Don’t forget to like it or share it on Facebook.