Contents insurance is known to protect the stuff in your home – furniture, electronics, toys, gadgets and more.
However, there are a few other things contents insurance can cover, and a few other things you may not have thought about.
Did you know – that if you accidentally cause any damage to other people’s property, you may be held liable for the cost to repair or replace it. Contents insurance may cover you for up to $1 million for liability. That means if your runaway trolley damages a car, you may be covered by your contents insurance for the cost to fix the car.
2. Contents away from home
Your contents are not always permanently in your home – think phones, handbags, laptops and cameras. Some contents insurance policies don’t actually cover your belongings when they’re outside your home premises, so make sure you find contents insurance that does.
3. Contents in your car
If your belongings in your car are stolen, they aren’t covered by your car insurance. Thieves love taking laptops, phones, sports bags, and even glasses from cars. These items can be costly to replace, so it’s important they’re insured with contents insurance that covers belongings out of the home. To protect them against theft in the first place, never leave valuables in your car, or make sure they’re well hidden.
4. House vs. contents – which covers what?
A great rule of thumb about whether things are covered by a house or contents policy is if you were to tip your home upside- down, generally anything that would fall down is covered by contents, and things that stay (like walls, floors, carpets etc) are covered by house insurance. Washing machines, fridges and other white ware that aren’t permanently plumbed into the home are covered by your contents insurance. Ovens and permanently plumbed or built-in appliances are covered by house insurance.
5. Specifying items
If you own a few particularly valuable items, it’s best to check they’re covered for what they’re worth. Some things (like jewellery, artwork etc) are only usually covered up to a certain amount for each individual item and up to a total amount for all items (eg $15,000 in total for all jewellery and watches). Therefore your valuables may need to be specified in your policy schedule to be covered. You may need to provide receipts, photos and/or valuations of the items, and keep those on hand in case you need to claim.
It’s important that you’re properly insured and you know what your insurance covers you for. You may also have more stuff than you think; see this contents checklist to calculate just how much you really have - you may be surprised!
This information is intended as a guide only. Take time to read through your policy document, and ask questions. For more information, see ami.co.nz/contents-insurance, call us on 0800 100 200 or message us on Facebook.