Talking about contents insurance probably ranks right up there with sorting your taxes—not exactly the highlight of your week. But when your shiny new iPhone takes a surprise dip at Muriwai or your prized Milli Vanilli album gets ruined in a move, you'll be glad contents insurance is in your corner. Whether you're flatting in Wellington, own a pad in central Auckland, or are just looking to protect your belongings wherever you call home, contents insurance has you sorted. Curious about the average cost of contents insurance in New Zealand? Let's break it down.
The average cost of contents insurance in New Zealand
As of Q4 2024, the average cost of contents insurance in New Zealand is $823 per year, according to the Quashed Index. This reflects a 0.9% increase compared to the previous year.
Your location plays a big role in determining your contents insurance costs. Here’s a breakdown of average annual premiums across key regions
Region | Average annual cost ($) |
|---|---|
New Zealand (national) | $823 |
Auckland | $754 |
Wellington | $990 |
Canterbury | $891 |
Source: Quashed, Q4 2024. Note: Actual costs will vary depending on the insurer, policy coverage, sum insured levels, and location.
What drives these regional differences?
Auckland: Lower premiums ($754) due to reduced risk of natural disasters.
Wellington: Highest premiums ($990) due to earthquake risk and higher claim rates.
Canterbury: Rising premiums ($891) due to past earthquake risks and ongoing insurance adjustments.
Where you live doesn’t just affect the cost—it also influences how insurers assess risk. Factors like crime rates, natural hazards, and rebuilding expenses all play a role in premium pricing.
Looking to reduce your contents insurance costs? Check out the Further Reading section for tips.
Why do contents insurance prices keep on increasing?
Many Kiwis are frustrated by rising premiums, especially when they haven’t made a claim. Here’s why your costs may still be going up:
Inflation and replacement costs – Electronics, furniture, and appliances have all become more expensive, increasing the cost to replace them.
Natural disasters and weather events – Floods, storms, and earthquakes drive up claims, which impacts premiums across the country.
More frequent claims – Higher theft rates in some urban areas and extreme weather events mean insurers are paying out more.
Reinsurance costs – Insurers pay global reinsurance firms to cover large-scale disasters, and those costs have been rising.
Even if you haven’t personally made a claim, broader market trends and risk factors can still push your premiums higher.
What factors affect your contents insurance premium?
Insurance companies assess risk before setting your premium. The key factors they look at include:
Where you live: Higher-risk areas (earthquake-prone, flood-prone, or high-crime suburbs) have higher premiums.
Your sum insured: The more valuable your belongings, the higher your premium.
Your excess: A higher excess lowers your premium, but you’ll pay more out of pocket in a claim.
Your claim history: A history of claims can lead to higher costs.
Optional cover: Accidental damage, high-value items, and extra coverage for bikes, jewellery, or gadgets will increase costs.
While these factors determine how much you’ll pay, there are ways to manage and even lower your premium.
How to lower your contents insurance costs
Affordability has been a concern with contents insurance - a Consumer NZ survey in 2022 found that 17% of respondents without contents insurance said they had to cancel or not renew their policy due to cost concerns.
With rising premiums, many Kiwis are looking for ways to keep contents insurance affordable without sacrificing essential cover. While you can’t control things like inflation or how insurers assess risk, you can make smart moves to keep your policy working for you.
1. Increase your excess
Choosing a higher excess (the amount you pay if you make a claim) is one of the easiest ways to lower your premium. The trade-off? You’ll pay more out of pocket if you need to claim. It’s a balancing act—setting it too high might make a claim unaffordable when you actually need it. Find a middle ground that keeps your premiums reasonable but doesn’t leave you short in an emergency.
2. Review your sum insured
A lot of people overestimate or underestimate the value of their belongings, and both can cost you. If you’re over-insured, you’re paying more than you need to. If you’re under-insured, you could be out of pocket when replacing lost or damaged items. Use an insurer’s online calculator or do a quick home inventory to make sure your sum insured reflects what your stuff is actually worth.
3. Shop around every year
Insurance pricing changes all the time, and what was a deal last year might not be now. Instead of spending hours hunting down quotes from different providers, let Quashed do the hard work for you. With a quick comparison, you can see quotes from multiple insurers in minutes —no more jumping between websites.
At the end of the day, contents insurance should work for you, not drain your wallet. A few smart tweaks can keep your premiums down without cutting corners on cover.
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Further reading
Smart insights to help you protect what matters most:
How to Lower Your Contents Insurance Costs: Smart savings tips.
Complete Guide to Contents Insurance: Protect your stuff like a pro.
Why Contents Insurance for Renters: Benefits of contents insurance for renters.
Contents Insurance Tips for Kiwi Seniors: Tips for older Kiwis.
Content Insurance Tips for Students: An essential guide for students.
Key Considerations with Contents Insurance: How to find a deal.
FAQs
How do I determine the appropriate sum insured for my contents?
Conduct a thorough inventory of your possessions, considering the replacement value of each item. Many people underestimate their total contents value, which can lead to being underinsured. Some insurers provide tools to help estimate this accurately.
Does contents insurance cover accidental damage to my belongings?
Yes, most contents insurance policies cover accidental damage. For example, if you accidentally drop and break your phone, your policy may cover the replacement cost. However, mechanical or electronic failures are typically excluded, so check your policy details.
What is the difference between 'new for old' and 'present value' coverage?
'New for old' coverage replaces damaged or stolen items with brand-new equivalents, while 'present value' (or indemnity) coverage reimburses you for the item's current value after depreciation. Opting for 'new for old' ensures you can replace items without having to cover the depreciation gap yourself.
Are my belongings covered outside of my home?
Many contents insurance policies extend coverage to personal items taken outside the home, such as laptops, phones, or bicycles. If your bike is stolen while you're out, for example, it may be covered. However, coverage varies, so check your policy to confirm what’s included.
How can I ensure I am not underinsured?
Regularly update your policy to reflect new purchases and changes in the value of your possessions. Some insurers provide tools to help assess the total value of your contents. Many people find that after a proper review, they need to increase their sum insured to ensure adequate protection.
Does contents insurance cover appliance breakdowns?
No, contents insurance typically does not cover mechanical or electronic failures of appliances. These are usually covered by warranties or consumer protection laws. However, if an appliance is damaged due to an insured event, like a fire or flood, it would be covered.
Is it worth getting contents insurance if I don't own expensive items?
Even if you don't own high-value items, the cumulative cost of replacing everyday belongings—like clothing, kitchenware, and furniture—can be substantial. Contents insurance also provides liability coverage, which can protect you if you're held responsible for accidental damage to someone else's property.
This article provides general information only and does not constitute insurance or financial advice. Insurance policies vary between providers, and you should check with your insurer or a licensed adviser for guidance specific to your situation. For full details, refer to Quashed’s terms and conditions.
