Every question, every answer, every source

To avoid gaps in cover when changing contents insurers in New Zealand, the key is to keep your existing policy active until your new insurer has confirmed that your replacement policy is in force.

Contents insurance covers your belongings against specified risks, such as theft, fire and certain types of accidental damage, depending on your policy. Even a short gap between policies could leave you paying for a loss yourself.

1. Follow these steps when switching insurers

Step 1: Check your current policy's end date

Before cancelling your existing insurance, check:

• The exact date and time your current cover ends.
• Whether your policy renews automatically.
• Any cancellation fees or refund arrangements if you cancel partway through a policy period.
• Whether any claims are pending or you have recently suffered damage that you haven't reported yet.

Tip: Don't cancel your existing policy just because you've received a quote or applied for a new one.

Step 2: Arrange your new policy before cancelling the old one

Contact your new insurer and confirm:

• The exact date your new cover starts.
• The time cover begins on that date, if applicable.
• That your application has been accepted and the policy is confirmed, rather than still awaiting approval.
• That you've received confirmation of your cover, ideally in writing.

For the smoothest transition, arrange for the new policy to start on the same date your old policy ends, with no gap between them. If the start and end times are unclear, ask both insurers to confirm them.

Step 3: Check that your new policy covers the same things

A new policy may not provide the same protection as your old one. Compare the following before switching:

• Sum insured: Is the amount enough to replace all your belongings at today's prices?
• Excess: How much would you have to pay towards a claim?
• Theft and burglary: Are there conditions relating to locks, alarms or signs of forced entry?
• Accidental damage: Is it included, optional or excluded?
• Items away from home: Are phones, laptops, jewellery and other belongings covered when you're out?
• High-value items: Do jewellery, watches, bicycles or collectibles need to be individually listed?
• Temporary accommodation: Does the policy cover additional living expenses if an insured event makes your home uninhabitable?
• Exclusions and special conditions: Are there restrictions on particular belongings, storage arrangements or circumstances?

Pay particular attention to whether your new policy covers belongings on a replacement-value basis or uses another settlement method.

Step 4: Disclose relevant information accurately

When applying for the new policy, answer all questions fully and honestly. In particular, check whether the insurer asks about:

• Previous claims or losses, including recent incidents that haven't resulted in a claim.
• Any previous refusal of insurance, cancellation or special terms.
• Your property's security and how your belongings are stored.
• Any other circumstances relevant to the insurer's assessment of risk.

If you're unsure whether something needs to be disclosed, ask the insurer and keep a record of its response. Incorrect or incomplete information can affect whether a future claim is paid. Consumer Protection NZ and the Insurance Council of New Zealand provide further guidance.

Step 5: Cancel your old policy only after the new one is confirmed

Once your new policy is confirmed and you know when it starts:

• Contact your existing insurer to arrange cancellation.
• Request a specific cancellation date that won't leave you uninsured.
• Ask for written confirmation of the cancellation date.
• Check whether any unused premium will be refunded.

If you're uncertain about the timing, a short overlap between policies is generally safer than a gap. However, don't assume that having two policies means you can claim the full amount from both insurers for the same loss.

The New Zealand Financial Markets Authority specifically advises consumers to keep their old policy running until the new policy is in force. Read the FMA's insurance guidance.

2. What if your old policy expires before your new one is ready?

If your current policy is about to expire and your new insurer hasn't confirmed cover, contact your existing insurer immediately.

Ask whether you can renew or extend your existing policy while the new application is being finalised. Don't assume that a pending application or a quote provides insurance.

If the old policy has already expired, contact the new insurer promptly and ask when cover can begin. Don't assume the new policy will cover incidents that happened before its start date.

3. A simple example of how to time the switch

Suppose your current policy expires on 31 October.

Action	Date
Obtain a quote and compare policies	Before 31 October
Apply for the new policy and receive confirmation	Before 31 October
Confirm the new policy's start date and time	Before cancelling the old policy
New policy starts	31 October or immediately after the old policy ends, as agreed
Old policy cancellation	Confirmed to align with the new cover

The dates above are illustrative. Your insurers need to confirm the actual start and end times, particularly if you arrange the change mid-term rather than at renewal.

4. Keep a record of the switch

Save the following documents:

• Your old policy schedule and policy wording.
• Your new policy schedule and policy wording.
• Written confirmation of the new policy's start date.
• Written confirmation of your old policy's cancellation date.
• Any correspondence about exclusions, special conditions or claims.

It's also worth photographing valuable belongings and keeping receipts or other evidence of ownership. The Insurance Council of New Zealand recommends keeping an up-to-date record of your contents to help if you need to make a claim. Read its contents insurance checklist.

---

Your final checklist

Before completing the switch, make sure you can answer yes to all five questions:

• Has the new insurer accepted my application?
• Do I know exactly when the new cover begins?
• Does the new policy provide suitable cover for my belongings?
• Have I disclosed all relevant information accurately?
• Will my old policy remain active until the new cover begins?

The most important rule is simple: secure the replacement cover first, verify the start date, and only then cancel the existing policy.