To Specify or Not to Specify - How Sub Limits Can Catch You Out

We all have precious items that we hold near and dear to our hearts. For my wife it’s her jewellery and a photo of our late puppy.  For me it’s my golf clubs and (in case my wife reads this) my wedding ring also.

Being aware you have precious items is a good first step when it comes to insurance – understanding what would happen in the event they were lost, stolen or damaged is the second.

How does my insurance work for my precious items you may ask?

Well, while most of your contents would normally be covered by your general sum insured there will without a doubt be sub limits that affect how some of your items are replaced or repaired.

Common Limits for Jewellery

For instance with jewellery, most policies in New Zealand will cover single items somewhere in the range of $1,000 - $3,000 per item.

There will also be a limit on the total amount of jewellery the policy will cover.  For example a limit of $15,000 for all jewellery is quite common.

Items like sporting equipment, laptops, computer gear and photography equipment will have limits too.

While there is no way I could replace the photo of our beloved puppy, I can make sure that my wife’s jewellery and my golf clubs are replaced satisfactorily.

Specify It

To make sure your cherished items will be replaced or repaired to your satisfaction you can specify items under your policy.  These will be counted outside of the standard limits.  It's a simple process to specify an item and means making your broker or insurer aware you have an item to specify – it increases the amount of cover for that particular item.

I always encourage people to check their policy wording for the exact limits that will apply.  This way you know what you’re covered for and can specify any items that might be more than your policy limits.  It’s a good idea to check the limits if you’re comparing policies too.

Talk to a Broker

And if you’re not sure about things talk to a broker, a good broker can help with making sure everything is protected for you just the way you want.

 

By Stu Cooper, previously National Domestic Manager @stu_cooper.


Rothbury

About the Author

Name: Rothbury        

Like many of our business insurance clients we're a majority NZ owned company that was started by enterprising Kiwis in 1950. Today, New Zealand is a different place to when we first started. As a consequence, the way…
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Like many of our business insurance clients we're a majority NZ owned company that was started by enterprising Kiwis in 1950. Today, New Zealand is a different place to when we first started. As a consequence, the way we respond to your business and personal protection needs has evolved and matured.

While our core business is still related to creating the best insurance solutions for you, our motivation and passion now lie in being unconditional advocates for our diverse range of clients. In other words people like you.

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Disclaimer: The articles published on this blog are designed to provide general information and do not take into account any individual’s particular circumstances. We recommend that you obtain professional advice on your requirements before making any decision about a financial product.
 


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