What IS Covered
Personal Belongings
The main part of your policy covers your personal belongings inside the rental property. This typically includes: furniture (beds, sofas, tables), electronics (TV, laptop, phone), clothing and accessories, kitchen items and appliances, books and media, and sporting equipment. Coverage is up to your chosen sum insured (e.g., $50,000).
Accidental Damage (if included)
If you add accidental damage cover, it protects your belongings from accidents like spilling wine on your sofa or dropping and breaking your laptop. This is optional and costs extra but is highly recommended.
Tenant Liability
This covers accidental damage YOU cause to the rental property up to the policy limit (usually $2 million). Examples include: punching a hole in the wall, accidentally breaking the shower screen, water damage from leaving a tap running, or damage from having friends over. Under NZ law, your liability is capped at the lowest of: actual cost to repair, 4 weeks rent, or the landlord's insurance excess.
Temporary Accommodation
If your rental becomes uninhabitable due to a covered event (fire, flood, burglary), the insurer covers temporary accommodation costs (usually up to 30-60 days depending on policy).
Legal Costs and Liability
Most policies include cover for legal liability up to $2 million (sometimes up to $5 million with premium insurers) if someone is injured at your property and sues you.
What is NOT Covered
Intentional Damage or Theft by You
If you deliberately damage your belongings or the property, it's not covered. Insurance only covers accidental damage and genuine risks.
Wear and Tear
Normal depreciation and aging of items is not covered. For example, if your sofa fades due to sun exposure or your carpet gets worn, that's not an insurable event.
The Building Itself
Rental insurance only covers your belongings and your liability. The actual building structure, walls, roof, and fixed fittings are the landlord's responsibility.
Earthquake (usually)
Most standard policies don't include earthquake cover. The Earthquake Commission (EQC) covers up to $15,000 of personal property damage in earthquakes, but you might want additional coverage.
Items Outside the Property
If items are stored outside the rental or are at another address, they're typically not covered unless specifically added to the policy.
High-Value Items
Expensive jewelry, art, or collectibles may have limits on coverage (often $500-$1000 per item). You can add specific items with higher limits for an additional premium.
Natural Disasters (depends on policy)
Some natural disasters may not be covered unless you have specific add-ons. Check your policy wording carefully.
Important Things to Check
- Read your policy documents carefully - exclusions vary between insurers
- Keep receipts or photos of valuable items as proof of ownership
- Update your sum insured if your belongings increase in value
- Ask about any items you're unsure about before a claim
- Understand your excess and what situations are covered