The Insurance Council of New Zealand (ICNZ) has released a guide for consumers in case they need to make an insurance claim.
With climate change-fuelled natural disasters causing record-breaking damages across New Zealand, the chances of customers having to make an insurance claim are increasing.
ICNZ reminded customers that they should understand what the insurance – whether for their house, contents, vehicle or business – covers. This is best discussed during the purchase or renewal stage, especially when it comes to things like the total sum insured for the home or contents.
“The cost of rebuilding soared around 18% over the past year, you’ll want to know if your cover has kept pace,” ICNZ said. “Likewise, you may have treated yourself to a new television, bought some jewellery or other expensive items which will boost the amount of contents cover you need.”
After an event occurs and customers need to make a claim, ICNZ advised them to take a look at their policy and check what they are covered for. According to the industry body, insurance is primarily for covering sudden and unexpected losses such as theft, accidental or disaster-related damage. Gradual damage, such as that caused over time by a pipe leaking behind a wall, is neither sudden or unexpected and cover for it is typically restricted. Customers should also check their excess, or the amount needed to be paid in case of loss.
When customers go online or call their insurer, ICNZ said it will be greatly helpful if they have their policy number ready and are clear about what happened and who is involved. If a police report was made, having the report number is also vital. ICNZ also advised customers to take photographs with high-value items before the loss as proof of ownership. Receipts or other proof of purchase, or an independent valuation for high value items such as jewellery or artwork, are also helpful when making a claim.
“While many claims can be dealt with quickly on-line, others might require you to make a call to talk things through with your insurer,” ICNZ said. “If there’s damage to your home, your insurer may want to send someone round to assess your claim and get the ball rolling on repairs or sorting out a cash settlement. If you are one of many to be hit by a major storm, flood or earthquake, please be patient. When there’s been a major event, insurers work hard to bring people in from around the country to help and work with local councils, tradies and building materials suppliers to prioritise claims.”
ICNZ also urged customers to prioritise their safety after a disaster.
“Don’t do anything to put yourself in harm’s way, and that typically involves staying out of flood water and damaged buildings,” it said. “Emergency repairs can be undertaken but talk to your insurer before incurring any cost. Likewise, when disposing of items talk to your insurer and take photographs first.”
