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What contents insurance covers
And the limits that catch people out.
Contents insurance sounds simple. It covers your stuff. The catch is in the detail: what counts as "contents", what gets left out, and the quiet per-item limits that mean your wedding ring or camera might be covered for far less than it is worth.
Here is what a typical New Zealand contents policy covers, what it does not, and the bits worth checking before you ever need to claim.
What does contents insurance actually cover?
Contents insurance covers the things you would take with you if you moved house. If they are lost, stolen or damaged by something like fire, storm or a break-in, your insurer pays to repair or replace them, up to the sum insured you set.
The easy test: if you tipped the house upside down, anything that fell out is contents. Furniture, beds, the TV, your clothes, kitchen gear, tools, sports equipment, jewellery, artwork. Appliances count too, as long as they are not built in, wired in or plumbed in. A freestanding dishwasher is contents. The one plumbed under your bench is part of the house.
Most policies also cover you anywhere in New Zealand, not just inside your four walls, and throw in a few extras like personal liability if you accidentally damage someone else's property.
Usually counts as contents
- ✓ Furniture, beds and soft furnishings
- ✓ TVs, computers, phones and gadgets
- ✓ Clothes, shoes and personal effects
- ✓ Whiteware that is not plumbed or wired in
- ✓ Jewellery, watches and art (within limits)
- ✓ Tools, bikes and sports gear
- ✓ Carpets, curtains and light fittings you own
What is not covered?
Contents insurance pays out for sudden, accidental events. It is not a maintenance plan. The big exclusions are the slow, predictable kinds of damage that come from age, neglect or the way you use something, plus a handful of items insurers carve out by default.
Slow damage and wear
Wear and tear, depreciation, rust, rot, mould and gradual deterioration are out. If your couch faded over five years or your deck slowly rotted, that is on you, not the insurer.
Pets and pests
Damage from your own animals, plus insects and vermin, is almost always excluded. The puppy that chewed the sofa leg is a hard no on a standard policy.
Business and renovations
Business stock and equipment usually needs its own cover. So does damage that happens during building work or renovations, unless you have arranged cover for it first.
Empty homes and vehicles
Leave a home unoccupied for more than about 60 days and cover can lapse. Motor vehicles are excluded too, since they belong on a car policy.
Exclusions vary between insurers. The Insurance Council of New Zealand keeps a plain-language rundown of common exclusions if you want the full list.
The sub-limits that catch people out
Here is the part most people miss. Even with a healthy sum insured, your policy quietly caps how much it will pay for certain valuables per item. Go over that cap and you are covered for the limit, not what the thing is actually worth.
These figures are a guide, not a rule. Every insurer sets its own caps, and some tie the total to a percentage of your sum insured. The point stands: an engagement ring worth $8,000 sitting under a $2,500 cap leaves you $5,500 short the day it goes missing. That is exactly the gap a quick policy read, or a chat with us, sorts out before it bites.
| Item | Typical unspecified limit |
|---|---|
| Jewellery or a watch (per item) | around $2,500 |
| Camera and photographic gear (per item) | around $3,000 |
| Kayaks, paddleboards, surfboards (each) | around $3,000 |
| Cash kept at home | a few hundred dollars |
What does it mean to "specify" an item?
Specifying an item means listing it separately on your policy with its own agreed value, usually backed by a receipt or a valuation. It lifts that item above the standard cap so it is covered for what it is truly worth.
You normally do this for anything valuable that beats the per-item limit: an engagement ring, an heirloom watch, a road bike, pro camera kit, a musical instrument. There is usually a small extra premium, but it is the difference between getting your ring replaced and getting a fraction of it.
When should you bother?
A good rule of thumb: if losing one item would genuinely hurt, and it is worth more than the cap, specify it. For most households that is the ring, the laptop and maybe the bike.
Not sure what you own that crosses the line? Our contents calculator helps you tally things up, and we are happy to flag what is worth specifying when we review your cover.
Worried something valuable sits under a cap?
We will check your limits actually match what you own, well before you ever need to claim.
Are your things covered out and about?
Mostly, yes. The stuff you carry with you around New Zealand, like your phone, handbag, jewellery, laptop and sports gear, is usually covered under your contents policy even when it is not at home. Some insurers let you extend this worldwide as an option for travel.
The catch is that cover away from home often has its own limit, separate from your main sum insured. So the phone stolen from a cafe table is covered, but maybe only up to a set amount. Worth knowing before your gear leaves the house.
Is accidental damage included, or extra?
This trips a lot of people up. A standard policy often covers named events, things like fire, theft, storm and burst pipes. General accidental damage, the red wine on the rug or the TV knocked off its stand, is frequently an optional add-on.
If you have young kids, pets or a clumsy streak, accidental damage cover is usually worth the extra. Check whether yours is switched on, because the wording matters more than the brochure.
Does it pay out new-for-old or market value?
Most modern contents policies pay new-for-old, meaning a stolen five-year-old TV is replaced with a new equivalent rather than its depreciated value. A few items, like clothing and linen, can still be settled on a depreciated basis.
It is the single biggest factor in what lands in your account at claim time, so it is worth confirming on your policy schedule or checking with your insurer before you assume the worst.
A quick example
Your five-year-old TV is stolen. New-for-old replaces it with a current equivalent model. Market value, or indemnity, would only pay its depreciated second-hand worth, often a fraction of a new one.
Common questions
Does contents insurance cover my phone and laptop?
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Usually yes, both at home and while you carry them around New Zealand, as long as you have portable contents or personal effects cover. There is often a per-item limit, so check your policy if your laptop or phone is on the pricier side.
Are my belongings covered when I take them out of the house?
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Most policies cover items you carry with you around New Zealand, like a handbag, jewellery, sports gear or a camera. Some extend overseas as an option. Cover away from home often has its own limit, so it pays to read that section.
How much jewellery does contents insurance cover?
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Unspecified jewellery is usually capped at roughly $2,500 per item, though it varies by insurer. If a ring or watch is worth more than the cap, you specify it on your policy so it is covered for its full value.
Is accidental damage automatically included?
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Not always. Plenty of policies cover named events like fire, theft and storm, but treat general accidental damage as an optional extra. If you want spills, drops and breakages covered, check whether accidental damage is switched on.
What is not covered by contents insurance?
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Wear and tear, gradual damage, pet and vermin damage, business gear and damage during renovations are common exclusions. Motor vehicles and anything left in a home unoccupied for more than about 60 days are usually excluded too.
Quick heads up: this is general information to help you get your head around contents cover, not advice about your exact situation. What is actually covered comes down to your policy wording and your insurer, so give the wording a read or flick us a message and we will talk it through.
Not sure your cover stacks up?
Get a free, no-obligation quote from Kapi Insurance. We will look at what you own, check the limits actually fit, and let you know if anything important is sitting under a cap.