When you have contents insurance, choosing the right level of cover is really important, but it can be tricky to get it right. We’re here to help you understand how to calculate your sum insured to reduce the risk of being underinsured.
The sum insured is the amount your contents are covered for, including GST.
All contents policies have limits on some items. For example, items of jewellery are only covered up to a certain amount. If you have an item that would cost more to replace than that limit, you would need to specify it on your policy. This would be referred to as a “specified item”.
Your sum insured needs to include the value of both general contents and specified items. We’ll ask you to tell us the value of your general contents separately from specified items to make sure you have enough cover for both.
The sum insured is the maximum amount you can claim in a single event for loss or damage to your contents after any applicable excesses. If, for example, your house was destroyed in a fire, flood or an earthquake, you would need to replace all your contents at the same time, right down to the food in your fridge and clothes in your wardrobe.
While there are some things that insurance can’t cover, like the sentimental value attached to a childhood toy or your grandmother’s wedding ring, it can help you recover from the financial cost of a major event if you’ve got the right level of cover. If you underestimate the amount of cover you need, you might not be able to replace all your things if they’re destroyed.
Even if you’ve had your contents insurance for a while, it’s important to check your sum insured each year to make sure you’ve accounted for extra things you’ve bought, or the cost of inflation if you had to buy the things you already own again.
This calculator provides an estimate sum insured for your contents but the final decision is yours, so if you think your amount is incorrect, you can change it. This is general information and not personalised financial advice and does not take into account your particular situation. You must make your own decision on the sum insured that is appropriate to your circumstances.
The Sum Insured calculator is an independent tool. Southsure doesn’t have access to information you enter, or access to the estimate that it produces, so if you’d like to adjust your contents sum insured, or add additional cover for special items, you’ll need to contact us.
Contents Insurance is arranged by Southsure Assurance Limited and underwritten by Lumley, a business division of IAG New Zealand Limited (Lumley).
This webpage is only a summary of the features and benefits of Contents Insurance and is intended to be of a general nature. Contents Insurance is subject to the policy terms and conditions, including exclusions that apply, which are set out in the policy document.
Neither SBS Bank nor any member of the SBS Bank Group guarantees the obligations of (or any products issued by) Southsure or Lumley.
For Lumley's financial strength rating, please click here.