Annual contents insurance review: a New Zealand checklist

At each renewal, the aim is to check that your contents policy still reflects what you own, what it would cost to replace, the risks you face, and the cover you would actually receive if you made a claim — rather than simply accepting the renewal premium.

In New Zealand, it's worth reviewing both the sum insured and the policy wording. Two policies with similar premiums can have quite different exclusions, limits and claim settlement terms.

1. Work through these six checks

1. Is the sum insured still enough?

• Recalculate the cost of replacing all your household contents with new equivalents at today's prices.
• Include clothing, furniture, appliances, electronics, kitchenware, linen, sporting equipment, tools, toys and items stored in garages or sheds.
• Account for inflation, recent purchases, gifts and changes in household size.
• Check whether the policy's sum insured includes GST and how the insurer applies it to claims.

Don't rely solely on the current second-hand value of your possessions. Contents cover is often based on replacement costs, subject to the policy's terms.

2. Are valuable items adequately covered?

Check jewellery, watches, bicycles, cameras, musical instruments, artwork, collections and high-end electronics.

• Look for per-item and category limits.
• Check whether specified items need to be listed individually.
• Confirm cover for accidental loss, theft away from home and items taken overseas, if relevant.
• Keep receipts, valuations, photographs and serial numbers where appropriate.

3. Does the policy cover the risks you care about?

Review cover for fire, theft, storm damage, water damage, accidental damage and natural hazards. The precise cover varies by policy.

Pay particular attention to:

• Flooding, surface water, landslip and other natural-hazard exclusions or restrictions.
• Gradual damage, leaking pipes, wear and tear, and maintenance-related exclusions.
• Accidental damage and cover for contents outside the home.
• Temporary accommodation or other additional expenses, if included.

4. Would a claim be settled the way you expect?

Read the policy wording and check:

• Whether items are replaced new-for-old or settled at depreciated value.
• Excesses for standard claims and any special excesses.
• Limits for theft, jewellery, cash, business equipment and items in storage.
• Security requirements, such as locks, alarms or notifying the insurer if the home is unoccupied.
• Whether matching sets, pairs and damaged items are treated as you expect.

5. Have your circumstances changed?

Tell your insurer about material changes, as required by your policy. Consider:

• Moving house, renting, flatting or changing who lives at the property.
• Working from home or operating a business.
• Buying expensive items, acquiring pets or using a room differently.
• Extended travel or leaving the property unoccupied.
• Changes in security or the way valuable items are stored.

6. Is the premium still good value?

Compare at least two or three alternative quotes on a like-for-like basis.

Compare the sum insured, specified-item limits, exclusions, excesses, claim settlement basis and optional benefits — not just the annual price. Check whether a higher excess would leave you comfortable paying that amount yourself after a loss.

2. Use a simple annual review scorecard

Tick each item once you have verified it, rather than simply assuming it is correct.

Renewal checklist

0 of 7 complete

Sum insured checked against current replacement costs

High-value items and individual limits reviewed

Excesses and claim settlement basis understood

Exclusions and natural-hazard cover reviewed

Household circumstances and occupancy details updated

Premium, discounts and alternative quotes compared

Renewal documents and policy wording saved

Copy checklist

3. Ask your insurer these questions

The New Zealand Financial Markets Authority recommends regularly reviewing insurance and asking providers to explain premiums, discounts, product suitability and the implications of changing policies. It suggests requesting responses in writing. Insurance

• Has my premium changed, and what are the main reasons?
• Is my current sum insured sufficient based on my updated inventory?
• What are the main exclusions, sub-limits and excesses I should be aware of?
• Are any discounts available, and am I receiving all those that apply?
• If I switch to another policy, what cover or benefits would I gain or lose?
• How would a claim be settled for my most valuable possessions?

For general guidance, see the FMA's insurance guidance, Consumer NZ's house and contents insurance guide and the Insurance Council of New Zealand's guide to common exclusions. InsuranceHouse and contents insuranceWhat Home, Contents & Car Insurance Don't Cover (NZ)

4. What should trigger a policy change?

Consider changing your cover if you discover that:

• Your belongings would cost substantially more to replace than your current sum insured.
• Important items exceed the policy's limits or are not covered away from home.
• You cannot afford the excess in an emergency.
• A material exclusion leaves you exposed to a risk you want insured.
• Another insurer offers meaningfully better protection for a comparable price.

The key test: If you lost all your contents tomorrow, could you afford to replace them to an acceptable standard under the policy you have today?

If you cannot answer that confidently, the policy needs further review before renewal.