Why now is a good time to review your home and contents insurance

Last month, we looked at changes in the general insurance market, including the end of some multi-policy discounts. This month, we’re looking at the practical follow-on: what members should do next.

For many households, home and contents insurance are two of the biggest insurance commitments they carry, which is exactly why now can be a good time to review them.

If pricing structures are shifting, it makes sense to check whether your current policies still offer the cover and value you expect and to compare other options, including any member discounts that may be available to you through Better Off Together.

 Please note:  This article is intended to provide general information to help members understand home and contents insurance and what to think about when reviewing cover. It is not personalised financial advice or insurance advice.

Why reviewing matters

It is easy to let insurance roll over each year without asking too many questions.

But over time, things change. Rebuild costs can shift, belongings can increase in value, and your current policy may not suit the way you live as well as it once did.

That is why reviewing your cover is not just about asking whether you can pay less. It is also about asking whether your policy still matches your home, your belongings and the level of protection you think you have.

Why price is only part of the picture

A lower premium can be tempting, especially when household budgets are under pressure. But the cheapest policy is not always the best value if it comes with a higher excess, tighter item limits or cover that does not fit your needs.

Price is only part of the picture. Consumer NZ’s comparison looks at policy costs, limits and customer service, while ICNZ notes that different policies can come with different restrictions and claims limits.

That is why it helps to compare more than cost alone. Excesses, policy limits, temporary accommodation cover, special limits on higher-value items, and other features can all affect how useful a policy really is if you ever need to claim.

In other words, shopping around is not just about finding a lower number. It is about making sure the cover still works for you.

What is worth checking when you review

A useful review starts with a few practical questions.

First, check your sum insured. If your home is insured for less than it would cost to rebuild, or your contents are insured for less than it would cost to replace them, that can create problems later.   Want to know more? Read our How to ensure your house is covered for the right amount article.  

Next, look at your excess. A higher excess can reduce your premium, but only if it is still affordable for you if you ever need to claim.

It is also worth revisiting the smaller details that can be easy to overlook like special limits on jewellery or electronics, temporary accommodation cover, liability cover, and whether the policy still reflects the way you live now.

A household that has renovated, bought more expensive items, changed living arrangements or started using the home differently may need to take a fresh look.

Why Tower should be part of the review

As HealthCarePlus member, if you are taking the time to review your options, it makes sense to include Tower as part of that comparison.

A discount should not be the only reason to choose a policy.  But where the cover suits your needs, it may make a meaningful difference to the cost of two important forms of protection.

What members can do

A good first step is to treat your next renewal as a reminder to review your policy, not just renew it.

Start with the basics.  Check what you are currently paying, what excess applies, and whether your sum insured still feels realistic for your home and contents. Are there any limits or exclusions that would matter to you if you ever needed to claim.

Then think about whether anything has changed since you last looked at your cover. Have you renovated, bought more expensive items, changed your living arrangements, or started using part of the home differently?

Once you have done that, compare your current policy against other available options. Look not just at price, but at what is actually included. A lower premium may look attractive, but it may come with a higher excess, tighter limits or less suitable cover. The most useful comparison is usually the one that looks at overall value, not just cost on its own.

It can help to compare a few key things side by side:

• the premium

• the excess 

• the sum insured

• special limits on higher-value items

• temporary accommodation or additional benefits

• any discounts available

This is also a good time to use the tools available to help you compare your options.

Public comparison sites can be useful for getting a sense of pricing, cover features and how policies differ.

But they may not show the discounted pricing available to you. That is why it makes sense to compare what you find publicly against the Tower Member-only offer thats available to our members, so you can judge the full picture on both cover and value.

 That kind of review does not have to take long, but it can be worthwhile. Because home and contents insurance are two of the biggest insurance commitments many households carry, even a modest saving or a better fit can make a meaningful difference. 

Final Thoughts from us

With pricing changes affecting the market, now is a sensible time to review your home and contents insurance rather than simply rolling it over.

Because these are two of the biggest insurance commitments many households carry, it is worth checking not just what you are paying, but what you are getting in return.

Shopping around can help uncover better value, highlight gaps you may not have noticed, and make the most of the tools and savings available to you.

For members, that review should include considering Tower as part of the mix, especially when our member-only discount is available.

Sources used in preparing this article

• Consumer NZ: How to get the best house and contents insurance
• Consumer NZ: House and contents insurance comparison
• ICNZ:  House & Contents
• ICNZ:  Consumer Guides
• ICNZ: Calculating your house’s sum insured
• Tower:  Insurance policy renewals
• Tower: Manage your insurance

Written by: Alan Sharpe

Alan is a key member of the HealthCarePlus leadership team. With over 30 years experience in marketing and customer service roles he is a passionate advocate for the union movement and HealthCarePlus’s mission to create real, lasting value for their members