Home & Contents
What is home & contents insurance?
Home insurance is an effective tool for protection against financial risk in case of loss or damage to one's home. It can additionally cover the home's contents in case of damage, loss, or theft.
When it comes to home insurance, a client can choose to insure the house against sudden, unforeseen, and accidental damage arising from all sorts of contingencies, or choose to seek insurance against certain defined perils such as fire, theft, flood, storm, or earthquake.
Contents insurance can cover items including household possessions, furniture, clothes, appliances, and other furnishings. Most contents policies have claims limits, especially for valuables such as jewelry, money, documents, and collections.
What you should consider?
If your home and its contents were damaged or destroyed in a natural disaster or accident, or all your valuables were stolen, could you afford to replace them?
Key considerations:
- Replacement value vs market value
- Specific coverage for high-value items
Did you know?
was paid out in claims for domestic buildings and contents in 2019.
(Insurance Council of New Zealand, Annual Review, 2019)
A very likely increasing trend in days with very high or extreme fire danger was recorded at 6 sites - Napier, Lake Tekapo, Queenstown, Gisborne, Masterton, and Gore for 1997-2019.
(Ministry for the Environment: Climate 2020)
7 out of 10 burglaries are residential burglaries.
(New Zealand Police, 'Crime in New Zealand at a Glance', September 2020)
What are the types of covers available?
Choose the right protection for your home with our flexible coverage options
Fixed sum insured
This is the most common type of coverage available. The insurance provider and the client agree on a total sum insured. In the event of damage or destruction to the property, the insurance company will pay to rebuild the house up to the agreed amount/sum insured.
Indemnity (present-day value)
This type of policy provides coverage that is approximately equal to the depreciated replacement cost of the house (excluding the value of the land), after accounting for its age and condition. Some older homes may not qualify unless they have undergone modernization.
Total replacement
Under this policy, if the house is destroyed, the insurance provider will undertake to rebuild or repair the house up to the total number of square meters under insurance cover, including the professional fees and demolition costs involved in the reconstruction process.
*Regardless of the type of coverage chosen, there are certain deductibles and limits of liability (or sum insured) that apply to the payout value.
What can it cover?
Home and contents insurance can provide extensive protection against possible loss or damage – with a choice of options, spanning different levels of cover and inclusions.
- Cover against physical loss or damage during the policy term.
- Damage caused by natural disasters such as earthquakes, landslides, volcanic eruptions, hydrothermal activity, tsunamis, and wildfires.
- Liability cover for injury or loss of life to a third party or loss of a third party's property on a building the client occupies or owns.
- Cover for alternative accommodation in case the home is inaccessible due to an emergency in the area or if the home becomes uninhabitable.
- Cover for the cost of replacing keys or locks that can provide unauthorized access to the house following theft, loss or illegal/unsanctioned duplication of your keys.
- Access to approved repairers, in addition to a client's preferred choices.
What is usually not covered?
Although the terms of a policy may vary across insurance providers and the type of policy, in general, a client may not be covered in the following situations:
When Insurance Made All The Difference
In 2020, John returned home after a severe storm and discovered pools of water on his kitchen countertop and floor. Upon further investigation, he found that water was leaking through the ceiling light fixture.
After investigating the issue, he discovered that a blockage in the roof's drain area had caused water to accumulate, leading to the leak through the butyl membrane and into the ceiling. Luckily, John had taken out a home and contents insurance policy to protect against such events.
Thanks to his insurance policy, John was covered for the costs of repairing the damage to his property and for replacing his furniture and belongings.
Why choose FG Insurance?
We provide comprehensive protection tailored to your specific needs
Area Based Replacement Cover
For non-natural disaster damage, we offer cover based on square-footage and will rebuild/repair the house based on the square meters listed on policy schedule – irrespective of the cost involved.
Built-In Price Surge Cover
Policies come with a built-in price surge cover to provide an extra layer of protection in case an area-wide disaster results in escalation of building costs.
Custom Cover Options
The policy options provide flexibility to adapt cover limits and add optional cover, if required, to suit diverse needs.
Adjustable Cover Limits
One size does not fit all. We provide adjustable cover limits for landscaping and retaining walls to account for differences in size of properties across clients.
Optional Cover Add-ons
Option to customize home insurance policy to include additional cover, like excess-free glass replacement which provides protection against excess payment for the accidental breakage of glass or sanitary fixtures.