Compare Comprehensive Contents Insurance

What is comprehensive contents insurance?

Comprehensive contents insurance is a policy designed to protect your personal belongings against events that could result in loss or damage to your items. It offers more extensive coverage than basic contents insurance by covering a broader range of incidents and types of items.

What Items are covered by comprehensive contents insurance?

Comprehensive contents insurance can vary between providers, but here’s a non-exhaustive list of items that are generally covered:

• Furniture: tables, chairs, beds, and other pieces.
• White goods and appliances: your refrigerator, oven, microwave, washing machine, etc.
• Electronics: computers, televisions, and gaming consoles.
• Personal items: clothing, shoes, and accessories.
• Outdoor items: BBQs, outdoor furniture.

High-value items like art, jewellery and any other expensive collectibles at home can be covered too, but generally require additional protection. We’ll look at ‘item limits’ further along.

What events are covered by comprehensive contents insurance?

You’ll be protected in a range of events that could result in loss or damage to your stuff at home:

• Theft or burglary.
• Fire or explosion.
• Storms, floods, or other natural disasters.
• Accidental damage.
• Temporary accommodation costs if your home becomes uninhabitable.

Damage by pests or damage during renovation generally isn’t covered with comprehensive contents insurance.

Types of contents insurance: Replacement value and indemnity value

In insurance terms, ‘Sum Insured’ refers to the maximum amount your insurance provider will pay if your contents are lost, damaged, or stolen. You have two types of insurance to choose from:

Replacement Value: This is a new-for-old option and covers the cost of replacing an item with a new one of similar type and quality.

Indemnity Value: This covers the current value of your belongings and considers any depreciation due to age or wear and tear.

Usually, a replacement value policy costs more than the indemnity value option, but it gives you better financial protection.

Understanding contents insurance excess

The excess is the amount you have to contribute towards the cost of a claim. You need to pay the excess first, and then your insurance company covers the rest up to the limit specified in your policy.

Here’s an example: if you have an excess of NZD 200 and claim a stolen laptop worth NZD 1,000, you’ll pay the first NZD 200, and your insurance company will cover the remaining NZD 800.

If you choose to pay a higher excess, the cost of your comprehensive contents insurance will usually be lower because you’re taking on more of the risk. On the flip side, a lower excess often leads to higher premiums.

What is the difference between comprehensive and basic insurance?

Basic insurance offers limited coverage, typically protecting your contents against specific events such as fire and theft. However, it may not include coverage for accidental damage or items outside your home.

If you want a broader level of protection, comprehensive insurance is a better choice. It includes coverage for accidental damage, and you may also be able to add extra portable contents insurance to cover your stuff when you’re away from home.

Understanding portable contents coverage

Portable contents, also called ‘personal effects’ coverage, is an additional feature often found in comprehensive contents insurance policies.

This feature extends your insurance protection to cover items you take out with you, like laptops, smartphones, jewellery or a bike. If these items are lost, stolen or damaged outside your home, say, a cafe or workplace, they are covered by portable contents insurance.
However, remember to check with your insurance provider about the specifics of the coverage, as limits and conditions may apply.

How to figure out the amount your items should be covered for?

Write a list of all your items and estimate their replacement cost.

To determine your required level of insurance, it’s best to do a detailed assessment to make sure the final sum insured is accurate and reflects the value of your contents.

Item limits in comprehensive contents insurance

• Some items have limits on the amount that your insurer will pay out if it is damaged, lost or stolen.
• These are known as ‘item limits’. They usually apply to high-value items like jewellery, art, collectables, and sometimes electronics.
• For instance, your policy might state that the insurer will only pay up to $2,000 for jewellery, even if your diamond necklace is worth $5,000. To make sure you’re fully covered for high-value stuff, you need to specify these in your policy and potentially pay an extra premium.
• Always remember to double-check your policy for any item limits.