Every question, every answer, every source

In New Zealand, you can check whether your insurer’s wear-and-tear deduction is correct by asking how they calculated it, what policy wording allows it, and whether they used a reasonable estimate of your belongings’ age and condition.

A deduction isn't automatically wrong just because your belongings were stolen rather than damaged. But you also shouldn't have to accept an unexplained percentage or an estimate that doesn't match your actual items or policy.

1. Check these four things

• Your policy wording: Find the section on stolen or lost belongings, contents cover, depreciation, and how claims are settled. Check whether you're entitled to replacement value, current value, or another amount.
• The calculation: Ask for the original value of each item, the deduction applied, and the final amount paid.
• The age and condition: Check whether the insurer used the correct purchase date, age, and condition. An item in excellent condition may not justify the same deduction as a heavily worn one.
• The depreciation rate: Ask how the insurer selected the rate and useful lifespan. A flat deduction of, say, 30% across very different items may deserve closer scrutiny.

The key distinction is that the insurer should be able to explain how the deduction follows from your policy and the facts of your claim.

2. Recalculate the deduction

Use this simple table to check each stolen item.

Item	New replacement cost	Deduction	Payout
Laptop	$1,500	40% ($600)	$900
Jacket	$300	20% ($60)	$240
Bicycle	$1,000	30% ($300)	$700

Illustrative figures only, not recommended depreciation rates.

For each item, ask:

• What value did the insurer start with — the original purchase price or the current cost of a comparable replacement?
• What percentage did they deduct, and why?
• How old did they assume the item was?
• What evidence or depreciation schedule supports that calculation?

Also check whether your policy provides replacement-value cover for that particular item or only its present value. Some New Zealand policies offer replacement cover for most belongings but use present value for certain categories. How to get the best house and contents insuranceContents insurance | Quote and buy online

3. Ask your insurer for a written breakdown

You can send them this message.

Email

Subject
: Request for explanation and review of depreciation deductions

Kia ora,

Thank you for settling my claim for my stolen belongings.

I would like to understand and verify the wear-and-tear or depreciation deductions applied to my claim.

Please provide, for each affected item:

• The valuation used before the deduction.
• The age and condition attributed to the item.
• The depreciation percentage or amount applied and how it was calculated.
• The basis for the calculation, including the relevant policy wording and any depreciation schedule or useful-life assumptions used.
• An explanation of whether the item is covered on a replacement-value or present-value basis under my policy.

Please also confirm whether the deductions have been reviewed against the specific age and condition of my belongings.

Once I have this information, I can check the calculations and identify any amounts that may need to be reconsidered.

If any deduction was applied incorrectly or does not reflect my policy entitlements, I would appreciate a reassessment of the settlement.

Ngā mihi

4. If the deduction still looks wrong

You can challenge it through your insurer's formal complaints process. Explain exactly which deductions you dispute and provide any supporting evidence, such as receipts, photographs, purchase records or comparable replacement prices.

If the insurer doesn't resolve the issue, you can contact its independent dispute resolution scheme. Depending on which scheme your insurer belongs to, you may be able to get a free, independent review. See the New Zealand Government's guide to complaining about a financial service provider. Complain about your financial services providerMaking a complaint about your financial service provider

Let's check your actual deduction

I can help you assess whether the amount deducted seems consistent with your policy and the calculation.

You don't need to know all the answers yet. The insurer's name and the items they deducted money from are enough to get started.