Switch and save up to 30 per cent on your home and contents insurance
According to a Finder survey of over 2,000 New Zealanders, the average person spent $352 on Christmas gifts in 2020. With a house full of new toys, gadgets, tech and sporting equipment, it is time to check your home and contents insurance has you covered for the year ahead.
We spoke to Nicola Middlemiss, insurance specialist at Finder, for her tips on how to get the most comprehensive cover for your family, at the best price.
Compare and count your savings
"Comparing home insurance every year can seem like a pain but it can seriously pay off. Insurers typically offer lower premiums to new customers as an incentive to sign up. That could mean a reduction of up to 30 per cent in some cases," advises Nicola.
Finder research shows 64 per cent of Kiwi households already have an insurance policy for their home and contents, but a ‘set and forget' mentality can see households paying steep premiums, without the right level of protection.
"Undertaking an annual insurance review will ensure you get a completely new evaluation of your home and contents and receive a competitive quote. You might find you're actually underinsured and would be out-of-pocket if you ever had to fully replace your homes," suggests Nicola.
Nicola says if you want true peace of mind from your insurance policy you should compare policies by the benefits they offer, then hunt down the best price.
"Not all policies are alike. Some home contents policies have a per item limit which means you cannot claim more than a certain amount for them," says Nicola.
For example, some standard home contents insurance policies have a limit of $1,000 per any item of jewellery, which goes up to a maximum of $5,000.
It could also be worth checking and renewing your home insurance following a big-ticket purchase and listing the item separately on your insurance policy. Each insurance company will have their own requirements, so be sure to check that expensive goods are covered.
If you decide to insure specific items for a monetary value, beware this will usually increase your premium too. Same goes for adding accidental cover to your policy.
A final tip when comparing or switching your insurance policy is to ask your insurer about available discounts and savings.
"Depending on your provider you may be able to reduce the cost of your premium by purchasing it online, paying annually in advance, or by receiving a discount for having multiple policies with the same insurer," concludes Nicola.
The opinions expressed in this article are the opinions of the author(s) and not necessarily those of Resimac. The above is general commentary only and is not advice tailored to any individual's financial situation. We recommend seeking advice from an insurance and/or a finance professional before implementing changes relating to your finances.