Material Damage Insurance at a Glance
What is Material Damage Insurance?
Material damage insurance is part of a business insurance solution that covers physical assets such as buildings, contents, equipment, fit-out, and stock against accidental loss or damage caused by events like fire or theft. The policy includes indemnity and replacement cover and may also cover theft and fraud.
What You Should Consider
Following a fire, flood, burglary, earthquake, or similar event, there may be obvious destruction, loss, or damage to buildings, plant, and stock. Such physical loss or damage is typically insured under a Material Damage policy, which is a modern form of fire and perils insurance.
Did You Know?
Total Claims Incurred
Commercial Material Damage and Business Interruption Net Claims Incurred in New Zealand (12 months to September 2019).
(Insurance Council of New Zealand 2019)
Loss Ratio
Commercial Material Damage and Business Interruption Loss Ratio in New Zealand (12 months to September 2019).
(Insurance Council of New Zealand 2019)
Types of Material Damage Insurance Covers
Replacement Value (RV)
Covers the cost of replacing your property if stolen or destroyed, based on current replacement value.
Indemnity Value (IV)
Pays the value of the item at the time of loss, restoring you to the same financial position before the loss.
Stock Coverage
Provides for the replacement of materials in trade and customers goods in case of damage or loss.
What Does Material Damage Insurance Cover?
Material damage insurance policy may offer a range of benefits:
- Property damages or bodily injury you may have caused
- Coverage for constructive loss
- Alternative residential accommodation after sudden loss
- Accidental loss to docks, piers, wharves, or road bridges
- Indemnity through payment, repair, or replacement
- Burglary cover for theft or attempted theft
What's Typically Excluded?
- Terrorism
- Electronic Data
- Building defects
- Faulty or defective design, materials or workmanship
- Interruption of utility systems
- Collapse or cracking of buildings
- Larceny
- Coastal or river erosion
- Willful acts or gross negligence
- Cessation of work or delay
- War or warlike operations
- Nuclear risks
Disclaimer:
The above exclusions are indicative in nature. For detailed exclusions, please refer to the policy wordings.
CASE STUDY
After the incident, Walter was understandably upset and concerned about the damage to his home. However, having Material Damage insurance gave him peace of mind knowing that the costs of repairing the damage would be covered.
A representative from the insurance company promptly visited Walter's home to assess the damage. It was determined that the water ingress had caused damage to the ceiling tiles, roof, and walls. The insurance company covered the cost of repairs, including carpentry work and painting to restore the area.
Walter was relieved by the quick and efficient service. Within days, the repairs were completed, and his home was restored to its pre-incident state, thanks to his Material Damage insurance policy.
Why Choose FG Insurance?
- Peace of Mind at Affordable Rates
- Flexible Plans
- 24/7 Claims Assistance
- Fast and Simple Claim Service
- Modern Policy Wordings
- Competitive Pricing