Domestic Insurance
Fri, December 4, 2020
Home and Contents
Home
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Open Ended Replacement
The client advises the area of the house in square meters and the Insurer will then rebuild or repair with no set dollar amount but to the same standard as prior to damage.
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Sum Insured Replacement
The client finds out what the cost of Replacement would be in dollars and the insurer will then rebuild or repair up to that dollar amount.
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Indemnity Value
Cover for defined event only and often used when a property is not eligible for accidental damage cover, eg: holiday homes or older homes. Indemnity value is the amount needed to put you back in the same financial position you were in immediately before the loss occurred no better or more extensive than when new, less due allowance for depreciation and wear and tear.
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Investment or rental property
A comprehensive insurance cover specifically tailored to landlord's need including any accidental loss or damage.
Contents
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Personal Contents
Cover for clients' belongings for any accidental damage or loss when they are situated at their home or temporarily moved elsewhere in New Zealand. Replacement cover or indemnity/defined risk cover are both available including those renting and flatting at request. Items of higher value such as jewellery, watches, collections of arts, paintings, antiques or other collections need to be specified on the policy and subject to extra premiums.
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Landlord Contents
Accidental damage or loss covers for the contents that you have left in your rental property for tenants use.
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Landlord Protection
This insurance covers not only accidental damage or loss but also malicious damage, vandalism, loss of rental income and other events caused by your tenant together with legal liability.
Motor Vehicle
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Full comprehensive cover
Full cover to your vehicle anywhere in NZ whether it was your fault or not and includes legal liability. Windscreen extension is optional with some insurer but normally included.
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Third party only cover
If an accident occurs and you are at fault (legally liable), the insurer will pay to have the other vehicle, or other damaged property repaired but not your vehicle.
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Third Party, Fire and Theft
It covers the same as third party above but in addition it will also covers two common things happen to your own vehicles which is fire and theft.
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High risk sports performance vehicle or driver with past convictions
Full comprehensive cover or third party cover available.
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Motorbike or scooters
Full comprehensive cover or third party cover available for your motorbike or scooter.
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Caravan
Full comprehensive cover or third party cover available for your caravan.
Pleasure Crafts
Vessels that is designed for private use from cabin boats, jet boats, kayaks, canoes, rowing scull, Run about, trailer yatch, windsurfer, sailing dinghy to Big Boys Toys yatch or Super yatch
Accidental damage or loss to your own boat or other boats anywhere in NZ costal water (normally described as being within 150kms of NZ coastline) which the owner of the vessel would be legally liable for and normally include any other associated cost such as salvaging a sunken vessel.
Travel
Any unexpected and any unforeseen events or problems during overseas trip are covered. Covers from any medical treatment overseas, lost, damage or stolen belongings, cancellation fees and lost deposits, death & disability, extra cost arising from unforeseen delays, missed connections to personal liability including expenses for bodily injuries or damage to property of other persons as a result of claim made against the policyholder.
All pre-existing conditions need to be disclosed from the outset. Some pre-existing conditions will never be covered but there are many pre-existing condition can be covered subject to extra premium being paid.
High risk activities while in overseas may be excluded and cover may not be available if travelling to high risk countries.
Mechanical Warranty
Extensive cover for most of the components of the vehicle including any mechanical or electrical and electronic components. Certain criteria need to be met for the policy to be in force such as service record after travelling a certain Km. There is maximum amount claimable at certain onetime and subject to an excess up to the maximum which is the sum insured.
Certain vehicles are not covered. E.g.: vehicles of high mileage (normally in excess of 200,000km), old vehicles (normally 18 years at end of policy), taxis, couriers, rentals or delivery vehicles and some high performance vehicles and any vehicle used for racing competitions are not covered.
Life and Trauma
Life Cover
Life cover provides lump sum payment to your loved ones, dependants or other nominated beneficiaries in the event of death so that they can get on with their lives. Whether it is paying off any mortgages, education and living cost for the dependants to funeral cost or any other reasons, life cover will trigger a lump sum of money to the policyholder often referred to as beneficiary upon the occurrence of the insured's individual death.
Trauma Cover
Trauma cover provides one-off lump sum payment if the insured suffer from a critical condition or trauma like cancer, major heart attack, stroke and loss of use including deafness, loss of sight, limbs, speech or permanent blindness. It pays out on the diagnosis of a specified medical condition or illness as specified in the policy-wordings.
This cash sum is ideal for any immediate expenses, medical treatment, relieve of financial and emotional strain, modification to person's home, rehabilitation expenses, employ nursing care or home help, paying off the mortgage or anything else a person may want to use it so that the insured can take their time to aid for recovery.
Accelerated Trauma cover
An accelerated benefit linked to the insured's life cover. It is technically an advanced payment of life cover that they have in place and as such life cover will be reduced by the sum insured of the trauma cover. The premium is generally lower as compared to stand alone trauma cover
Standalone trauma cover
Separate policy not linked to any life cover. Premium is higher compare to accelerated trauma cover.
Health
Health cover
Health cover covers the financial costs of dealing with health problems.
The important reasons to have health cover are as follow:
You have a greater choice of when, where and how you get treated after consultation with the doctors.
Peace of mind that all medical bills will be taken care of.
Avoid any long delays in the public health system when it comes to non-acute medical condition. For example, the person may suffer from heart attack that requires surgery but is deemed not immediately life threatening by the doctor at current stage, the person will be on waiting list in the public health system. How long the list is may depend and in many cases can takes up to several months to year(s) if the people do not have any private health cover. The emotional and financial stress of waiting can be frustrating and straining. Waiting may mean the condition could deteriorate, prolonged periods in pain and discomfort, loss of income because can't work and your lifestyle could not go on until you receive the treatment.
Get cover now when the insured is healthy because it will cover for many unknown health issues that may arise in the future. In many cases pre-existing condition will generally be excluded so it is best to get covered when the insured is healthy.
If insufficient medical resources in NZ and treatment are unavailable in NZ, you can be treated overseas and all associated cost will be covered. Certain criteria need to be met and max limits apply.
In-Hospital only or Base Cover
Covers big expenses after specialist consultation which results in surgical treatment or non surgical hospitalization/treatment.
In-Hospital, specialists and tests
Covers specialist consultations and some diagnostic procedures that do not result in hospitalization.
In-Hospital, specialists and tests and GP cover
Covers include regular GP consultation and prescriptions benefit. Stand-down period, max benefit limits and conditions apply.
In-Hospital, specialists and tests and GP cover and Dental & Optical
Covers include regular trips to dentist and optometrists. Some specialists consultation including chiropractor, osteopath, audiology and acupuncture are only covered under this option but with some insurer it may be included (In-Hospital, specialists and tests option). Stand-down period, max benefit limits and conditions apply.
Income Protection or Disability Income
Income Protection cover pays monthly income benefit to the insured who are incapacitated and are unable to earn an income due to any illness or accident. These benefits usually start after a waiting period and will continue for a specified term or until a pre-selected age.
Indemnity value contract
Indemnity cover is the most common form of disability cover sold today. It indemnifies the policyholder for the loss of earnings at the time of claim. It is not the sum insured amount that will be paid out but that is the maximum amount that will be paid in claim time, usually 75% of the insured's income less any post-disability income at claim time. Proof of earnings for the past year or two is required. Claims will be subject to any offsets e.g. any ACC entitlements or other benefits. Post-disability income that is not subject to any offsets includes any passive interest, rental or any dividends received.
This form of contract is normally more suitable for people who are salary or wage earner and any self employed earning a steady income and is usually tax-deductible.
Agreed Value contract
Agreed value cover pays a maximum of the actual sum insured normally 50% of the insured's income as the insurance company agrees at the time of application. It is underwritten, contract is signed and agreed with the "agreed amount" and not during claim time. This form of cover is usually more suitable for people with fluctuating income.
Partial Disability
Partial disability benefits are included for the above contracts.
Occupation Eligibility
Not everyone is eligible for Income Protection. Occupations are classified according to job description. Activities of the job can vary although classified as the same job or occupation. Only full time jobs are eligible (at least 20 hours per week).
The important reasons to have income protection cover are as follow:
Why would you insure all you valuable possessions including your vehicles and properties from any accidental damage or loss and not you, yourself? After all the greatest and most valuable assets of all individuals is their ability to earn.
How would you survive without any income? Rely on your paid sick leave, ACC or government benefit, use up all your savings, relying on your partner to work, borrow money or selling off your assets are the normal answers but is this what you really want to do? Where would you live and what effect would this have on you?
ACC only covers accidental events and not illness and in many cases there are shortfalls of what you normally receive as income and what they actually pay. I.P cover is there for top-up on the monthly benefit.
Definitions of disability
Definitions vary amongst insurers.
Unable to perform his/her own or usual occupation.
Unable to perform any occupation for which the life insured is reasonably suited by education, training and/or experience.
Unable to do at least one of the important duties of his/her occupation necessary for the production of income. An important duty is defined as on which involves 20% or more of the tasks essential to the production of income.
Unable to perform the important income producing activities of the usual occupation for more than 10 hours per week and not working more than 10 hours per week in any occupation.
Overseas Student Insurance
International Student Cover (student visa/permit)
Cover for students holding a student visa from other countries while they are studying in NZ. Cover for medical expenses, personal accident or liability as specified in the policy wordings with the option of personal items/effects covered at extra cost. Max claim limit and excess applies.
Working in or visiting New Zealand (work visa/permit or visitor's visa/permit)
Cover for people holding work permit or visitor's visa from other countries while they are in NZ. Cover for medical expenses, personal accident or liability as specified in the policy wordings with the option of personal items/effects covered at extra cost. Max claim limit and excess applies.
