The best time to think about insurance is before you need it. Insurance provides cover for sudden and accidental damage. There are steps you can take to avoid common issues, and to make it more likely you’ll have the cover you expect. Start by checking your policy.
Our Information Sheets in our Document Library have quick guides to common issues. Consumer tips and case examples are included.
Our Glossary explains the meaning of technical terms used in tips and cases.
Check what you are, and are not, covered for. Check the sum insured for your house insurance, which is the maximum an insurer will pay to rebuild your home. Check the m2 measurement, and check that additional property features and other rebuild costs are included.
Generally, insurance provides cover for sudden and accidental damage. Gradual damage is an example of a common exclusion. Confusion often occurs as people discover damage, such as water damage, suddenly, but the cause is a gradual leak and therefore it is not covered.
For any valuable items, keep receipts, get up-to-date valuations for jewellery, and specify these items on your policy schedule. Contact your insurer to discuss. Take “reasonable care” of your property, for example, lock your house and car, don’t leave bags in your car.
Your obligations, in the event of a claim, will be set out in your policy. Receipts, valuations, records or photos help to prove ownership. Stolen items must be reported to the police within certain timeframes. Paying an excess is a usual requirement if you make a claim and it is accepted.
Check out the Insurance Council of New Zealand (ICNZ) Fair Insurance Code that explains what insurers do at claim time and what they expect you to do when you make a claim.
When you apply for insurance, renew your policy, or make a claim, answer all questions accurately and truthfully. If in doubt, ask. Many claims are declined, and policies cancelled, because of incorrect or false statements or fraud. This can affect future insurance cover.
There are all sorts of reasons that your premiums increase each year, depending on what type of policy you have. For instance, your age on a life policy, your claims history on a vehicle policy, an increase in weather damage for your house policy. The best thing to do is talk to your insurer about why the premiums have increased. The IFSO Scheme can only consider complaints about premiums if the insurer has misrepresented the premium levels when you arranged the policy, or if the insurer has increased the premiums outside the terms of your policy.
You must tell your insurer everything that may affect its decision to insure you. This is referred to as the duty of disclosure. If in doubt, tell your insurer everything. If you do not tell your insurer all the information it requires, it can treat your policy as though it never existed and refuse your claim – this is called avoidance.
You must be able to prove your loss in all cases. This means you may be expected to provide some proof of ownership, such as receipts. It is a good idea to keep an up-to-date photographic record of important household contents and personal items. You also need recent jewellery valuations for specified jewellery.
As a rule you must tell your insurer about all of your convictions. If you do not tell your insurer and later have to make a claim, it can avoid your policy and refuse to consider the claim. The exception is the “Clean Slate” legislation, which gives some people the right to withhold information about their criminal convictions in stated circumstances.
When you make a claim, your insurer will ask you more questions or check up on your history. This can lead to your insurer finding out information which it should have been given when you applied for insurance.
Yes, if the policy allows the insurer to do so. An insurance policy will usually state that you must not give it incorrect or false information when making a claim. If the information you give to your insurer is incorrect or false, it may mean the insurer can decline your claim or even cancel your policy. It can also affect any future insurance application you make. If you don't know the correct answer, let your insurer know that you will get back to them with the right information.
Yes, if the policy says so. If you provide false information it can mean your whole claim is declined and/or your policy is cancelled.
The “sum insured” is the maximum amount your insurance company will pay if your home is totally destroyed or badly damaged in an earthquake. It is not the price you paid for your home, or the rates valuation, or what you could sell it for. The sum insured is based on the m2 measurement of your home and additional features such as driveways, fences, swimming pools, sheds, retaining walls, and should include additional costs, such as demolition and professional costs like architects fees. It is the cost to rebuild it on a clear site.
Check the m2measurement of your home and other buildings on your property are recorded accurately. Check additional features have been identified. Answer the questions on your insurer’s free online calculator. You might want to ask a builder or quantity surveyor for their expert advice.
Most general insurers are members of the Insurance Council of New Zealand (ICNZ) and subscribe to the Fair Insurance Code - a code* developed by the ICNZ, which sets out "the standard of service member companies must provide to their customers. These obligations are in addition to those imposed by the law". (*The code describes how your relationship with your insurer should work, including what you need to tell them and how they need to respond.)