Imagine the stress and cost of replacing everything you own—from your electronics to furniture to clothing—after an unexpected event. Contents insurance is here to give you peace of mind by covering your belongings against theft, damage, or loss. In this guide, we’ll walk you through everything you need to know about contents insurance, from choosing the right policy to calculating your coverage needs and the costs.
Let's start with the basics of contents insurance
One key part of contents insurance is the sum insured. This is the most money your insurer will pay if you file a claim. It's important to determine the total value of your belongings. By doing this, you can ensure you have enough coverage.
The policy wording explains the rules and terms of your insurance deal. It shows what is covered and what is not. It's important to read this document carefully. Doing so can help you avoid surprises when making a claim.
Contents cover usually includes things like furniture, electronics, appliances, clothing, and personal belongings. However, the items that are included or excluded can vary for each policy. This is why understanding these details is so important.
Why is contents insurance important?
Having contents insurance gives you financial safety. It helps you pay to replace or fix your belongings. This is important if you own valuable items or have many possessions. Many contents insurance policies keep you safe from surprises. Some of them include legal liability cover. This can support you if you accidentally damage another person's property. When picking the right level of cover, consider your own situation and how much risk you feel comfortable with. A qualified financial adviser can help you make a good decision.
Calculating your coverage needs
To figure out how much coverage you need, start by taking a good look at your belongings and their worth.
Inventorying your belongings
Creating a home inventory is a handy way to understand your insurance needs.
Begin by making a list of items in each room.
Include furniture, electronics, appliances, and personal belongings.
Don't forget to add the items that you might miss.
Household contents: Clothes, bedding, books, kitchen items, and bathroom supplies.
Recreational equipment: Sports items, bikes, musical tools, and camping supplies.
Home office: Computers, printers, scanners, and office chairs.
Take pictures or videos of your items to show their condition.
Keep your purchase receipts and the values of any high-value items.
Store this information safely both offline and online so you can easily access it.
Estimating the replacement cost of your items
Once you write down your belongings, the next step is to find out how much it would cost to replace them. This means checking the price for new items that are similar in type and quality today.
Checking your purchase records can be useful. However, keep in mind that prices may have changed since you last looked. You can use online tools, such as an insurance calculator, or visit retailer websites to find the current prices.
If you own special or old items, it's smart to get a professional valuation. A skilled appraiser can provide a precise estimate for insurance. This is really important for items that are very valuable.
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Policy inclusions and exclusions
Getting to know your contents insurance policy is key. It can help you avoid surprises when it’s time to make a claim. Exclusions are important to know. They are situations or things that your policy does not cover. A few common exclusions include normal wear and tear and deliberate damage. The exclusions can vary based on where you live and the kind of coverage you have.
What is typically covered?
Contents insurance policies protect your belongings from various risks.
Many insurance policies cover water damage. This can occur due to burst pipes, appliances overflowing, or leaks in the roof. This protection is essential in places with a lot of rain or plumbing issues.
Contents insurance usually covers floor coverings such as carpets, rugs, and vinyl flooring. This coverage depends on your policy limits. It’s important to understand how much coverage you have for floor coverings. This amount can change depending on how the damage occurs.
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Common exclusions to be aware of
Contents insurance is very helpful, but it does have some exclusions that can limit what is covered. Knowing these exclusions is important. It helps you manage what to expect and makes sure you have the right coverage for possible risks. A common exclusion is gradual damage. This includes wear and tear over time. If items wear out because of age, regular use, or not being taken care of, the insurance will not cover this gradual damage.
It's important to check your policy document. This document has a complete list of the exclusions that apply to your coverage.
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How much is contents insurance in NZ?
Wondering what it costs to protect your belongings? Our data shows that at the end of September 2024, the average cost of contents insurance in New Zealand is $844 per year, reflecting an 11.5%
Here’s a look at how contents insurance premiums have shifted over recent years, along with a breakdown of costs across different regions. Prices are climbing steadily, with Wellington leading as the most expensive spot for contents insurance. Nationwide average contents insurance costs
| Average contents Insurance cost $ | Year on Year difference $ | Year on Year % change |
Q3 2022 | $649 | ||
Q3 2023 | $757 | $108 | 16.6% |
Q3 2024 | $844 | $87 | 11.5% |
Insurance costs by region
Location | Yearly contents Insurance cost $ | Difference to the national average $ |
National | $844 | |
Auckland | $755 | -$89 |
Canterbury | $865 | +$21 |
Wellington | $1,054 | -$210 |
These figures highlight a consistent upward trend in contents insurance premiums across New Zealand, with Wellington residents facing the highest costs. For more detail read our blog on the average costs of insurance.
How can I save on contents insurance?
There are many ways to save money on your insurance, especially for contents insurance.
First, check out the different options that are available. You can use Quashed to compare prices easily every year. Prices can change and might increase by 20% or more.
Second, understand what belongings you own. This will help you pick the right level of cover. Also, watch out for exclusions. If most of your items are not expensive, you may need a lower level of cover.
Third, think about increasing your excess. This is the amount you pay when you make a claim. A higher excess often leads to lower premiums.
Lastly, consider getting your contents insurance from the same company as your home insurance or car insurance. This can lead to bundle deals. But be careful - a multi-policy discount might still be more than having separate policies with a different insurer. Even if your car or home insurance seems good, the contents cover might not be the best deal.
The final word
Contents insurance is your safety net, covering everything from electronics to furniture when life throws a curveball. Fire, theft, water damage—it’s all costly to replace, but with the right cover, you won’t be paying out of pocket.
Want to find the best deal without the hassle? With Quashed’s Market Scan you can compare contents insurance options in seconds. Get the coverage you need, save time and money, and protect what matters most. Sign up now for a free quote and see how simple staying covered can be with Quashed.
FAQs
How much does contents insurance cost in NZ?
According to the Quashed Quarterly Index, the average cost of contents insurance in New Zealand is $844 per year, reflecting an 11.5% increase from the previous year. However, the actual cost can vary depending on where you live and a few other factors. For example, Wellington has the highest average cost at $1,054 per year, while Aucklanders enjoy a lower average at $755. Given these variations, it’s worth shopping around and comparing policies to find the best fit for your budget and need.
What is covered in contents insurance in NZ?
Contents insurance generally covers all your personal belongings, from furniture and electronics to clothing, jewellery, and even kitchen appliances, depending on the policy. Think of it as protection for almost everything you’d take with you if you moved. Some policies also cover items you take outside the home, like laptops or mobile phones, though you might need to specify high-value items separately. Keep in mind that every policy has its own limits and exclusions, so it’s important to review the details to understand what’s covered and what’s not.
Is it worth getting contents insurance?
For most Kiwis, contents insurance is definitely worth it. Even if you don’t have a lot of high-value items, replacing everything after a fire, flood, or burglary can be incredibly costly. Contents insurance offers a safety net, so you’re not left bearing the full financial burden if something unexpected happens. Quashed data shows that contents insurance costs have been steadily rising, which indicates that protecting your belongings is increasingly valuable. And if you’re renting, remember that your landlord’s insurance won’t cover your personal items, so contents insurance is a smart way to keep your belongings safe.
Can I get contents insurance if I'm renting?
Renters can get contents cover to keep their belongings safe, and they really should! A landlord's insurance usually doesn't protect the tenants’ items. Contents insurance helps renters from risks like theft, fire, and some legal issues. It may also cover costs for temporary accommodation if needed.
Does contents insurance cover my flatmates?
It does not include things owned by other people. This means it does not apply to items owned by your flatmates, tenants, or boarders. It also does not cover items that belong to friends or family who visit and stay with you.
Got more questions about contents insurance? You’ll find all the answers right here.
