We get it—when you’re busy running a household or managing a career, setting up contents insurance might not be the most exciting task. But here’s the deal: if something happens to your belongings, you want to be sure you’re covered properly. And the key to that? Getting your sum insured just right. The sum insured is simply the maximum amount your insurance will pay out if you need to make a claim. But how do you figure out how much is enough? Don’t worry—setting the right sum insured doesn’t have to be complicated. Let’s break it down and make sure you’re covered without overpaying.
Step 1: Take an inventory of your stuff
It’s easier than it sounds. The first thing you’ll want to do is take a good look around your home. Walk through each room and make a list of everything you own—from furniture to gadgets, to all those little things that add up. For example:
Electronics: Laptops, phones, and TVs
Furniture: Couches, dining tables, beds
Kitchen Appliances: Fridges, dishwashers, microwave
Clothing & Personal Items: Jewellery, clothes, shoes
Outdoor Gear: BBQs, bikes, outdoor furniture
Don’t forget about those high-value items like your jewellery or your art collection—these might need special mention in your policy. Do you want to save on contents insurance? Read our blog on tips to get the right deal for you.
Step 2: Estimate the replacement cost
Once you’ve got your list, it's time to assign a value to each item. A quick tip: you want to estimate the replacement cost, not the current market value.
So, if your couch is getting old but it would cost $2,000 to replace, use that figure. You don’t have to do this manually. Many insurers have online calculators that help you estimate the cost of replacing everything in your home. If you’re unsure about specific items, like electronics or appliances, do a quick search for their current market price.
Not sure where to start with contents insurance? Our guide has everything you need to know, all in one place.
Step 3: Use Quashed to compare and get the right coverage
At Quashed, we make it easy to find the best contents insurance for you. Now that you’ve got an estimate of how much it would cost to replace your belongings, it’s time to find the right policy.
Use Quashed to compare contents insurance policies across different providers. This will help you find the right coverage for your needs. Maybe you need higher coverage for expensive gadgets, or perhaps you're happy with a standard plan. Whatever works best for you, Quashed helps make the comparison process quick and hassle-free.
Why are Kiwis making the switch to Quashed? Find out in our blog, MoneyHub Insurance vs. Quashed Insurance, and see what makes us the smarter choice.
Step 4: Keep your sum insured updated
It’s tempting to set your sum insured once and forget about it. But here’s the thing: life changes, and so do your belongings. Did you get a new sofa? Upgrade your kitchen appliances? Buy new bikes for the family? If your contents grow over time, you’ll need to update your coverage accordingly.
Make it a habit to review your sum insured every year—just like you would check your car’s registration. And, of course, after big events like moving homes or major purchases, take a moment to adjust your policy. If you’re feeling overwhelmed by insurance jargon or unsure where to start, we’ve got you covered. Read our complete guide and take the guesswork out of protecting your belongings
Step 5: Balance coverage and cost
It’s easy to get caught up in insuring everything to the max, but you also want to make sure the premium fits your budget. If you insure everything at replacement value, your premium might be higher. But underinsuring your belongings could leave you in a tough spot if something happens.
Finding the right balance is key. You want to make sure your most valuable items are properly covered without breaking the bank. Quashed allows you to tailor your coverage by comparing different policies, so you can make sure you’re getting the best bang for your buck. If you are a bit stuck on comparing insurance and what to look for read our blog Comparing Insurance in New Zealand: Make Smarter Choices Today.
Why all this matters!
When it comes to contents insurance, there’s no one-size-fits-all. The amount you should insure depends on your personal situation and the value of your belongings. If you don’t get the sum insured right, you could be underinsured (and left with a big gap in coverage) or overpaying for insurance you don’t need. That’s why it’s important to take a few minutes each year to review your contents insurance.
With Quashed, you can easily find the best policy that matches your needs, helping you stay protected and in control. Ready to snag the best deals on contents insurance? We've got you covered in our blog.
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Hypothetical case study: Sarah’s steps to setting the right sum insured
Sarah, a 38-year-old professional living in Auckland, recently moved into a new apartment. She's got a couple of young kids, a new job, and a growing collection of tech gadgets, including a brand-new laptop, smartphone, and tablet. Sarah wants to make sure everything is properly insured, so she decides to review her contents insurance.
Step 1: Inventory of belongings
Sarah takes an afternoon to go through her apartment and list all the valuable items:
Electronics: Laptop ($2,000), smartphone ($1,000), tablet ($800)
Furniture: Sofa, dining table, kids’ bunk beds
Kitchen Items: Fridge, microwave, washing machine
Valuables: Family heirloom jewellery and some high-end art pieces
Step 2: Estimating replacement costs
Sarah adds up the replacement costs for everything she wants insured—based on current market prices the total is $15,000. After checking online prices for her high-value items, Sarah estimates the total value of her belongings at $17,000.
Step 3: Use Quashed
Sarah then heads to Quashed to compare different contents insurance policies. Using Quashed’s easy-to-use comparison tool, she finds the following options:
Policy 1: $250/year, covers everything with a $500 excess.
Policy 2: $280/year, includes accidental damage, but with a higher excess of $1,000.
Policy 3: $230/year, only covers standard items with a lower excess.
After reviewing her needs and preferences, Sarah chooses Policy 2, as it offers full coverage (including accidental damage) for only $30 more annually.
Step 4: Regular review
Sarah sets a reminder to review her contents insurance every year. She’ll update her sum insured if she buys new tech or furniture and will also keep an eye on changing values as her kids’ belongings grow. Want to save money? Check out these simple tips to save on your contents insurance premium.
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Wrapping it up
Setting the right sum insured doesn’t have to be stressful. By following these simple steps, you’ll make sure you’re properly covered without overpaying. And with Quashed, comparing policies and finding the right coverage for you is easier than ever.
So, take control of your contents insurance today, and enjoy peace of mind knowing your belongings are protected. Ready to get started? Compare policies with Quashed today and ensure your belongings are properly protected!
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FAQs
How do I choose a sum insured?
Choosing the right sum insured is all about determining the total value of your belongings. Start by taking an inventory of everything you own, from electronics to furniture and valuable items like jewellery or artwork. Once you’ve estimated the replacement costs, use this figure as your sum insured. Don’t forget to factor in the current market value and potential depreciation of older items.
What is the sum insured for contents?
The sum insured is the maximum amount your insurance will pay out to replace your belongings in case of damage, theft, or loss. It’s essential to set an accurate sum insured, ensuring it covers the total replacement cost of your items—without being too low (which could leave you underinsured) or too high (which could lead to overpaying for premiums).
How do you calculate total sum insured?
To calculate your total sum insured, list all your belongings, including electronics, furniture, clothing, and valuables. Estimate the replacement cost for each item. Add up the values to get the total sum insured. You can use online calculators.
Where can I find the best deals on contents insurance?
Getting the best deal on contents insurance is all about shopping around and knowing what perks or discounts insurers are offering. Whether it’s loyalty discounts, multi-policy bundles, or special promotions, we’ve rounded up the best deals available in New Zealand to help you save.
