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Understanding your contents sum insured

When you take out contents insurance, you’ll need to specify the total amount you’d need to replace the contents of your home. For example, if your house was destroyed in a fire, flood or an earthquake, you may need to replace all your contents at the same time, even including the pots and pans in your cupboard. 

The figure you provide is your contents sum insured. It’s the maximum amount IAG New Zealand Limited (IAG) will pay after any applicable excess has been deducted.

It’s your responsibility to set the correct contents sum insured when you first apply for insurance, as well as when you renew your policy or update contents in your home.

Replacement cover versus present value

Replacement cover

If your item is lost, stolen or damaged beyond repair, the policy will cover the cost of replacing it with a brand-new equivalent, regardless of how old the damaged item was. IAG’s contents insurance provides replacement cover for most items, while some are covered for present value.

Present value

Present value is the cost to replace an item with one of similar age and condition. For some items like books, clothing, or footwear, IAG only pay the present value.

Check your policy wording for more information on the types of contents that are covered for replacement or present value.

Policy limits and specified items

Specified items are valuables that will cost more to replace than your policy limits allow. Items such as jewellery and cameras are only covered up to a certain amount. If you want to cover something that’s worth more than its policy limit, you’ll need to list it on your policy as a specified item with a corresponding specified sum insured.

Estimating your contents sum insured

The Sum Insured calculator can provide an estimate of the cost to replace your contents. This is an independent tool provided by Sum Insured Pty Ltd. BNZ and IAG don’t have access to the information you enter, or to the estimate that it produces. If you’d like to adjust your contents sum insured or add specified items, you’ll need to contact the team at IAG.

The calculator uses the information you enter about your address and household, along with values supplied by Sum Insured Pty Ltd, to produce a suggested replacement cost for your contents. The estimated cost is a guide only and is not intended to replace a professional valuation on your items or contents. You’ll need to decide whether the estimate is appropriate, or if you should amend it based on your knowledge of your belongings. It’s your responsibility to correct any information if it’s not accurate.

Use the contents calculator on the Sum Insured Pty Ltd website.

Keeping your contents sum insured up to date

It’s important to check your sum insured each year to make sure you’ve accounted for extra things you’ve bought, or for inflation on replacement items you already own. IAG may adjust your sum insured at renewal to factor in inflation and market changes. However, this adjustment doesn’t account for your unique situation, and it may not necessarily reflect the actual change to the replacement cost of your contents.

If you set your contents sum insured too low, you may not be able to replace your belongings to the same specifications or quality, or at all. You can update your sum insured at anytime - you don’t have to wait for your renewal date.  You can review and update your sum insured online through the BNZ app or Internet Banking,^ or by contacting the team at IAG. 

Get in touch

To update or discuss your contents sum insured, contact the team at IAG, available Mon-Fri, 8am-8pm, and Sat-Sun 8.30am-5pm.