Question 1

What does an insurance broker actually do?

Accepted Answer

A broker works for you, not the insurer. We assess your risk, approach multiple insurers, compare wording as well as price, arrange the policy, and manage any claim on your behalf.

Question 2

Does using a broker cost more than going direct?

Accepted Answer

Usually not. Brokers are paid commission that is built into the premium, and we often access broker-only wordings or negotiated terms that are better than the retail equivalent.

Question 3

How does an excess work?

Accepted Answer

The excess is the amount you contribute to each claim. A higher excess lowers your premium. Some policies apply extra excesses — for example a young driver excess, or a separate earthquake excess calculated as a percentage of the sum insured.

Question 4

What is a sum insured, and why does it matter so much in New Zealand?

Accepted Answer

New Zealand moved from open-ended replacement cover to sum insured policies after the Canterbury earthquakes. Your sum insured is a hard cap: if it costs more to rebuild than the figure on your schedule, you fund the difference.

Question 5

Can I switch insurers mid-policy?

Accepted Answer

Yes. Most insurers refund the unused portion of the premium, less any charges. We check for claims in progress and no-claims history before recommending a move.

Question 6

What is Natural Hazards Cover (formerly EQC)?

Accepted Answer

It is government-backed cover for earthquake, landslip, volcanic activity, tsunami and hydrothermal damage, collected via your house policy. It is capped, with your insurer covering the balance up to your sum insured.

Question 7

Does ACC mean I don't need health or life insurance?

Accepted Answer

ACC covers accidental injury only. It does not cover illness, elective surgery, or death from natural causes, which is where health, trauma and life cover come in.

Question 8

Why did my premium increase when I didn't claim?

Accepted Answer

New Zealand premiums are driven by reinsurance costs, natural hazard modelling, building cost inflation and your region's risk profile — not just your own claims. Repricing or restructuring the excess can often offset it.

Question 9

What happens if I don't disclose something?

Accepted Answer

You have a duty to disclose everything material an insurer would want to know. Non-disclosure can allow the insurer to reduce or decline a claim, or void the policy. If you're unsure whether something matters, tell us and we'll ask.

Question 10

Who do I complain to if a claim is declined unfairly?

Accepted Answer

Start with the insurer's internal complaints process, which we manage with you. If it is still unresolved you can take it to the Insurance & Financial Services Ombudsman at no cost.

Insurance questions, answered honestly

How insurance works here

Questions specific to your cover

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