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Understanding your contents sum insured

When you take out BNZ PremierCare contents insurance, you’ll need to specify the total amount you’d need to replace the contents of your home. This includes specifying any valuables above the specified item limit in the policy. Specified items are valuables that will cost more to replace than our policy limits allow.

The figure you provide is your total contents sum insured. It is the maximum amount you can claim in a single event for loss or damage to your contents, less any applicable excesses.

For example, if your house was destroyed in a fire, flood or an earthquake, you’d need to replace all your contents at the same time, down to the food in your fridge and the clothes in your wardrobe.

Our contents policies provide replacement cover for most items, which means if your covered item is damaged beyond repair, we’ll replace it with one that’s new.

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

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. BNZ PremierCare 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 we 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

Some items have limits on the amount you can claim. 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.

Estimating your contents sum insured

You can use the Sum Insured calculator to estimate the cost to replace your contents. This is an independent tool provided by Sum Insured Pty Ltd and not BNZ or IAG. 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 additional cover for specified items, you’ll need to contact the IAG PremierCare team.

The calculator combines information you enter including details about your address, and your household 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 contents policy. 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 total 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 to replace items you already own. We may adjust your sum insured at renewal to factor in inflation and market changes, however, our adjustment doesn’t account for your unique situation. Nor will our adjustment necessarily reflect the actual change to the replacement cost of your contents.

If you set your sum insured too low, you may not be able to replace your belongings to the same specifications or quality, or at all. You can review and update your sum insured at any time by contacting the IAG PremierCare team.

Read understanding your home sum insured if you have PremierCare home insurance.

Get in touch

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