Kia ora & congratulations on owning your slice of Kiwi paradise. Now that you’ve got your dream home, it’s time to protect it. I know, I know – talking about insurance is not the most exciting topic. But stick with me, and I promise to make this as painless (and dare I say, fun?) as possible.

Why Bother with Home Insurance?

Meet Dave from Dunedin. Dave thought home insurance was just another way for “the I-man” to take his hard-earned cash. So, he decided to live on the edge and skip it. Fast forward six months, and a freak storm damaged his roof. Guess who had to fork out $15,000 for repairs. Yep, our mate Dave. Don’t be like Dave.

Home insurance is like a superhero cape for your house. It might not feel cool but when disaster strikes, you’ll be glad you have it. Here’s why:

• Mother Nature is unpredictable: New Zealand is beautiful, but it’s also prone to earthquakes, floods, and storms. Home insurance has got your back when things get shaky (literally).
• Accidents happen: Ever left the bath running and flooded the house? (No judgment here!) Home insurance can cover accidental damage.
• Burglars exist: Unfortunately, not everyone respects your property. Insurance can help replace stolen items.
• Peace of mind: Knowing you’re covered lets you sleep better at night. And we all know how important a good night’s sleep is!

Types of Home Insurance

Now, let’s break down the types of home insurance. It’s like choosing your character in a video game, but instead of superpowers, you’re picking coverage.

• Building Insurance: This covers the structure of your home. Walls, roof, floors – you name it. If it’s part of the building, it’s covered (usually).
• Contents Insurance: This is for all your treasured stuff inside the house. Your TV, your grandma’s antique vase, even your clothes.
• Combined Building and Contents Insurance: The dynamic duo. Often cheaper than getting them separately.

Sarah from Wellington opted for combined insurance. When her washing machine decided to overflow, not only was the damage to her floors covered, but also her soggy rug and water-logged laptop.

What is generally covered ? The Good, The Bad, and The Ugly

Insurance policies can be as confusing as navigating a maze, but a good insurance broker can help guide you through the twists and turns. The advice below is very generic, and it’s important to understand your specific policy wording. A good broker can help with that too. For now, let’s break it down and make it simple for you

Usually Covered:

• Fire damage
• Storm and flood damage
• Theft and burglary
• Accidental damage
• Earthquakes (but check the fine print!)

Might Be Covered (Check Your Policy):

• Temporary accommodation if your home becomes unlivable
• Legal liability if someone injures themselves on your property
• Gradual damage (like that slow leak you didn’t notice for months)

Probably Not Covered:

• General wear and tear
• Damage from pests (sorry, those possums are your problem)
• Intentional damage (so don’t “accidentally” set fire to that ugly wallpaper)

Pro tip: Always take the time to read your policy document. While it might not be the most thrilling read, understanding it is crucial. If you have any questions or need clarification, don’t hesitate to reach out to your broker. At Financial Advisers NZ, our dedicated team of experienced brokers is here to help guide you through the details and ensure you have the support you need. 

How Much Coverage Do You Need?

This is where things get a bit tricky. You don’t want to underinsure and be left short if something happens, but you also don’t want to pay for coverage you don’t need.

Here’s a simple way to figure it out:

• For Building Insurance: Get a professional valuation or use online calculators provided by insurance companies. Remember to factor in things like demolition costs and architectural features.
• For Contents Insurance: Go room by room and make a list of everything you own. Yes, everything. It’s tedious, but you’ll thank me later. Don’t forget things like clothes and kitchenware – it all adds up!

Generally, your insurance broker should be able to work with you to advise on the coverage that would be right for you.

How Much Will This Cost?

Ah, the million-dollar question (hopefully not literally). The cost of your insurance depends on a few factors:

• The value of your home and contents
• Where you live (sorry, Welly folks – those earthquake risks don’t come cheap)
• The type of coverage you choose
• Your excess (that’s the amount you agree to pay if you make a claim)

Pro tip: You can often save by bundling your home and contents insurance with the same provider. It’s like buying in bulk at Costco, but for insurance.

Making a Claim – When Disaster Strikes

So, the worst has happened. Maybe your roof decided to let the rain in, or a burglar thought your TV would look better in their house or your region is hit by a tornado. Here’s what to do:

• Stay calm: Panic is not your friend here.
• Document everything: Take photos, make lists, gather receipts. The more evidence you have, the smoother your claim will be.
• Contact your insurer ASAP: Most have 24/7 helplines or online claim submission. The sooner you let them know, the better.
• Be honest: Don’t try to pull a fast one on your insurer. They’re like human lie detectors.
• Follow their process: Each insurer has their own claim process. Follow it to the letter to avoid delays.

Lisa from Christchurch had her home damaged in an earthquake. She kept a detailed diary of all conversations with her insurer and took photos of everything. Her claim was processed quickly and without hassle.

Tips and Tricks – Become an Insurance Pro

Want to level up your insurance game? Here are some pro tips:

• Review your policy annually: Your needs change, and so should your coverage.
• Increase your excess to lower your premium: But make sure you can afford the excess if you need to claim.
• Install security systems: Many insurers offer discounts for homes with alarms or deadbolts.
• Pay annually instead of monthly: It’s often cheaper in the long run.
• Don’t sweat the small stuff: Save your claims for the big things to keep your premiums down.

The Bottom Line

Let’s be honest – home insurance may not be the most exciting topic, but it’s one of the most important aspects of homeownership. Think of it as a safety net for your property, ready to catch you when unexpected events occur, like natural disasters or theft.

Finding the right insurance broker and policy is essential. It should fit your needs perfectly and give you peace of mind knowing you’re protected. Taking the time to find the right coverage now can save you from significant expenses later on.

In summary, investing in the right home insurance is crucial for safeguarding your property and ensuring your financial security. Your future self will appreciate the effort you put in today to protect your home and belongings.