Two contents insurance policies in New Zealand can have very similar premiums but produce very different payouts after a theft because the price tells you relatively little about what the insurer will actually pay for your stolen belongings.

The biggest differences are often hidden in the policy wording: what is covered, how much you can claim, what evidence you need, and which exclusions apply.

1. Six differences that can change your payout

1. What items are covered, and for how much

One policy might cover jewellery, laptops, bicycles and other valuables up to generous limits. Another might impose low limits on individual categories, even when your overall contents sum insured is high.

2. Replacement value versus depreciated value

A policy may pay to replace an eligible stolen item with a new equivalent, while another may calculate its current value after wear and age. This can make a substantial difference for electronics, furniture and appliances.

3. How the theft happened

A forced entry into your home may be treated differently from theft involving an unlocked door, stolen keys, an unattended vehicle or belongings taken outside the home. Some circumstances may be excluded or subject to specific conditions.

4. Where the items were stolen

Cover for belongings inside your home may differ from cover for items stolen from a car, while travelling, at work or outside New Zealand. Optional extensions can also matter.

5. Proof of ownership and value

Receipts, bank statements, serial numbers, photographs and valuations can help establish that you owned an item and what it was worth. If you cannot substantiate a claim, the insurer may dispute its value or whether it was yours.

6. Excesses, sublimits and claim conditions

A higher excess reduces the amount paid. Special item limits, security requirements, exclusions and conditions can reduce the payout further—or, in some circumstances, result in a claim being declined.

2. An example: the same theft, two very different payouts

Imagine a burglar steals a laptop, a camera and a piece of jewellery. Their combined replacement cost is $8,000. Both policies cost roughly the same each year.

Policy A

Higher effective cover

$7,800

Illustrative payout after a $200 excess, assuming all items qualify for full replacement cover.

Policy B

Tighter limits and valuation

$3,000

Illustrative payout after depreciation, category limits and excess reduce the claim.

These are hypothetical figures, not quotes or a prediction of any insurer's settlement. Actual payments depend on the policy wording, schedule and circumstances of the theft.

This is why the Insurance Council of New Zealand and Consumer NZ recommend comparing policy limits and valuation methods, not just premiums. House & Contents Insurance: Sum Insured ExplainedHow to get the best house and contents insurance

3. What to compare before choosing a policy

Use this checklist when reviewing two New Zealand contents policies.

Policy comparison checklist

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Theft is covered in the circumstances I am concerned about

Replacement value versus present or indemnity value

Individual limits for jewellery, electronics, bicycles and other valuables

Cover for belongings outside the home and in vehicles

Excess per claim or event

Security requirements and exclusions

Evidence requirements and claim settlement options

Overall contents sum insured and specified-item cover

For independent guidance, start with the Consumer NZ contents insurance buying guide and the Insurance Council of New Zealand's house and contents insurance guide. How to get the best house and contents insuranceHouse & Contents Insurance: Sum Insured Explained

4. If a theft has already happened

If you are comparing policies because you have experienced a theft, or an insurer has offered a lower payout than expected:

• Ask the insurer to explain how it valued each stolen item and identify the exact policy clauses applied.
• Request a breakdown of any sublimits, depreciation, excesses or exclusions.
• Gather receipts, bank records, photographs, serial numbers and the police report, where available.
• If you disagree, make a formal complaint to the insurer and follow its internal complaints process. If unresolved, you may be able to take the dispute to its external dispute resolution scheme.

The key is to compare the insurer's reasoning against the wording that applied when the loss occurred, rather than relying solely on the policy summary.

Are you comparing two policies before buying, or trying to understand a payout after a theft? If you tell me which situation applies, I can help you work through the relevant differences.