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Terminology

Excess

The amount a customer pays towards a claim under an insurance policy. Different amounts may apply depending on the type of claim.

Home Sum Insured

(May also be referred to as a Sum Insured or House Sum Insured) – The maximum amount payable to repair or rebuild your home under an IAG-underwritten home policy, exclusive of Special Features and any other applicable benefits which the policy states as being in addition to the Sum Insured. The Sum Insured includes cover for Recreational Features and retaining walls, if applicable under the policy, up to the policy or cover limit. In the event of any claim, an excess usually applies to the Home Sum Insured amount.

House Sum Insured

(May also be referred to as a Sum Insured or Home Sum Insured) – The maximum amount payable to repair or rebuild your home under an IAG-underwritten home policy, exclusive of Special Features and any other applicable benefits which the policy states as being in addition to the Sum Insured. The Sum Insured includes cover for Recreational Features and retaining walls, if applicable under the policy, up to the policy or cover limit. In the event of any claim, an excess usually applies to the House Sum Insured amount.

IAG

For convenience, all references to ‘IAG’ on this website mean IAG business divisions operating in New Zealand and the terms ‘underwritten by IAG’ and ‘IAG-underwritten’ may also mean underwritten by AMI (if applicable, and not by IAG New Zealand Limited). IAG New Zealand Limited is the owner of the State, NZI and Lantern Insurance brands and underwriter for most of the home insurance offered by BNZ and The Co-operative Bank, as well as the underwriter for many home policies offered by Aon, Crombie Lockwood and many other New Zealand insurance brokers.

IAG's

For convenience, all references to ‘IAG’ on this website mean IAG business divisions operating in New Zealand and the terms ‘underwritten by IAG’ and ‘IAG-underwritten’ may also mean underwritten by AMI (if applicable, and not by IAG New Zealand Limited). IAG New Zealand Limited is the owner of the State, NZI and Lantern Insurance brands and underwriter for most of the home insurance offered by BNZ and The Co-operative Bank, as well as the underwriter for many home policies offered by Aon, Crombie Lockwood and many other New Zealand insurance brokers.

Recreational Features

For IAG-underwritten home policies these are defined as tennis courts, permanently fixed swimming pools and permanently fixed spa pools.

Reinsurance

The cover that insurers like IAG obtain, to protect them against the cost of customer claims due to natural disasters and very large events. This cover strengthens the insurers’ claims paying ability, and is required by legislation.

Reinsurers

The companies that insurers like IAG obtain cover from, to protect them against the cost of customer claims due to natural disasters and very large events. This cover strengthens the insurers’ claims paying ability, and is required by legislation.

Retaining wall

An exterior wall (not being a main wall of any dwelling), that specifically holds earth in position (retains the land), preventing slippage, weather erosion and other movements that can occur to land. A retaining wall may also have a fence on top of it. It is different from a garden wall that may be present to separate areas and provide landscaping. A garden wall is purely aesthetic and does not protect the structure of the land.

Special Features

For IAG-underwritten home policies these are defined as bridges, culverts, permanent fords or dams, wharves, piers, landings or jetties, cable cars, and private utility plant including wind or water mills and diesel generators and associated equipment.

Sub-limits

The maximum amount payable under a policy for a particular home feature, such as a swimming pool or retaining wall.

Sum Insured

(May also be referred to as a Home Sum Insured or House Sum Insured) – The maximum amount payable to repair or rebuild your home under an IAG-underwritten home policy, exclusive of Special Features and any other applicable benefits which the policy states as being in addition to the Sum Insured. The Sum Insured includes cover for Recreational Features and retaining walls, if applicable under the policy, up to the policy or cover limit. In the event of any claim, an excess usually applies to the Sum Insured amount.

Total Sum Insured

The maximum amount payable on a claim relating to the home under an IAG-underwritten home policy. This includes the home’s Sum Insured as well as the Sums Insured for any Special Features, but excludes any applicable benefits which the policy states as being in addition to the Total Sum Insured.

cover limit

The maximum amount payable for specific property. IAG-underwritten home policies have these for items like Recreational Features, retaining walls and for some types and causes of damage.

policy limit

(May also be referred to as a ‘cover limit’ or ‘sub-limit’) – The maximum amount payable for specific property. IAG-underwritten home policies have these limits for items like Recreational Features, retaining walls and for some types and causes of damage.

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Terms of Use

Below are the terms of use for this website.

Privacy

This website is brought to you by New Zealand's largest general insurer, IAG New Zealand Limited (IAG). The protection of your privacy is important to us, and we are committed to acting in accordance with the Privacy Act 1993. Please refer to the respective websites of:

  • our business divisions (State, NZI and Lantern);
  • AMI Insurance Limited;
  • our business partners (BNZ and the Co-operative Bank); and
  • AON, Crombie Lockwood and other brokers whose products are underwritten by IAG,

for their individual privacy policies.

Agreement to the Terms of Use

By accessing and browsing this website you represent that you have read, understood and accepted these Terms of Use (as updated from time to time).

Changes to the Terms of Use

As we continually seek to improve our website, we may modify these Terms of Use from time to time. Please check these Terms of Use periodically for changes.

Purpose and use of this website

This website is intended for use by people living in New Zealand or with insurable interests in New Zealand to provide information on the changes to our home insurance, and the move from 'replacement cost' insurance to 'sum insured' insurance. We make no representations that it is appropriate for other purposes and we can't and don't accept any responsibility if it is used for such other purposes. New Zealand law governs and New Zealand courts have exclusive jurisdiction.

Business advice information

The information provided in this website is intended only to provide a summary of the topics covered. It does not purport to be comprehensive or to provide legal advice. We encourage you to obtain specific professional advice before acting in reliance on any statement contained in this website.

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While reasonable efforts have been made to ensure accuracy of this website, no liability is accepted for any errors. We will take reasonable measures to ensure that the website is available to you when you need it, free from viruses and unauthorised access. Unfortunately we can't and don't accept responsibility for any consequences if this is not the case. If you use this website inappropriately or maliciously you will indemnify us for anything that happens to us as a result of or in connection with your actions.

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