What is general insurance?

Wouldn’t it be reassuring to know that should something unexpected happen to your belongings, we’ve got you covered?

Do I need general insurance?

When you’re considering whether or not general insurance is right for you, ask yourself a couple of questions:

What items do I own that I’d want to be able to repair or replace if something unexpected happened to them? (e.g. a house, a car, major household items, jewellery etc.)
Could I afford to repair or replace these items out of my own pocket if something happened to them?

Insuring your belongings is generally a personal choice. However you should weigh up the risks carefully and consider the benefits of being covered for the unexpected.

General insurance products

Home and contents insurance

Motor vehicle insurance

Cover may include Loss or accidental damage to your vehicle. Damage you might cause to someone else’s property or vehicle.

Commercial Insurance

This may include cover for your business assets, business interruption, public liability, machinery breakdown, deterioration of stock, vehicles, employers and statutory liability.

Rural Insurance

This may include cover for your farm assets, interruption, liabilities, livestock, vehicles, home, contents & boat.

Boat insurance

This may include cover for your trailered craft and jetskis

What items need general insurance?

Ideally, whatever you value should be covered by some sort of insurance. Most items can be insured (within limitations and under certain terms and conditions that will be specified by the insurer) if it has value and you wish to have some financial protection against its possible loss or damage.

What am I covered against?

The specific events or circumstances covered will vary from policy to policy. However some of the perils usually covered by general insurance include the risk of damage or loss caused by:

Accidental damage Burglary & Theft Fire
Storm/flood/lightning strike Falling tree or aerial Impact by aircraft, vehicle or animal Medical expenses (in the case of travel insurance)

What about earthquakes and other natural disasters?

Part of the premium you pay for your house and contents insurance policies is paid to the Earthquake Commission, to provide cover up to a specified limit in the event that your land, home or contents is damaged by an earthquake, tsunami, volcanic eruption, hydrothermal activity or natural landslip. It also covers your residential land (within limits) against storm and flood damage.

As at September 2012, the limits specified by the Earthquake Commission are:

For home insurance, $100,000 + GST (less an excess)

For contents insurance, $20,000 + GST (less an excess)

(Sourced from www.eqc.govt.nz, September 2012)

Cover up to your full sum insured, above the limits specified by the Earthquake Commission, maybe provided by your insurance policy.

How much general insurance do I need?

Ideally you should have enough insurance so that in the event of a claim, your insurance will help you return to the same financial position you were in before any damage or loss occurred.

That’s why it’s important you provide your insurer with an accurate account of all the belongings you wish to insure.

Choosing cover to suit you

The type of cover you choose is a personal decision. Some policies have options to be covered for indemnity (or “present day”) value, which is the value at any given time, taking into account the age and condition of the item. Or you can choose replacement value, which is the cost of fully repairing or replacing a damaged or lost item.

Need help?

For more information please contact us

A disclosure statement is available, on request and free of charge from your Adviser