Contents Cover Explained
When you insure your Holiday Home or Own Home with initio you have choices when it comes to your Contents Insurance. You can choose how much cover (your sum insured) and which type of cover – Replacement Value or Present Day Value. After reading this, you will understand the differences in the two types of cover.
Present Day Value Contents
Present Day Value Contents has two sum insured options – $20,000 and $40,000. If you are insuring a holiday home or rental property your policy will automatically include $20,000 cover. This level of cover is recommended as basic cover for your chattels (carpets, drapes, oven), and minimal furniture such as beds and lounge suite. We do not recommend this cover for insuring your personal effects such as cellphones, laptops and jewellery. Your claim will be depreciated based on the age and condition of the item you are claiming on. For example, if you have a 10 year old sofa in average condition which cost you $500, you might only be offered $100 at claim time.
Replacement Value Contents
Replacement Value Contents has four sum insured options – $60,000, $90,000, $120,000 and $220,000. This cover is the premier contents option and is the correct cover to insure your furniture and personal effects. It is only an option when you insure a holiday home or your own home. Your contents will be replaced with new items at claim time, so in the previous example, if it was uneconomic to repair, you would be paid $500 or the cost to replace your sofa.
The following list represents items that are always limited to their Present Day Value:
- items which you have decided not to replace or repair.
- books, records, audio, video tapes and computer software
- clothing, footwear and household linen
- sporting or camping equipment
- spare parts, accessories or associated equipment of watercraft, motor vehicles, motorcycles, caravans, trailers, aircraft or other aerial or spatial devices that are not in or on them
Unless you have specified the item, the following is the maximum amount you can claim for each item:
| Jewellery & Watches: | $3,000 per item |
| Camera or Photographic Equipment: | $3,000 per item |
| Bicycles: | $3,000 per bike |
| Collections (Stamps, medals, coins, cards): | $3,000 per collection |
IMPORTANT: This is a summary of the policy contents limits only. Please refer to the policy if you require full details of cover.
Additional Benefits of Replacement Value Contents
- $5,000 cover for when you travel to Australia or the Pacific Islands for less than 3 weeks.
- $15,000 cover (per event) for your Home Office.
- $2,000 cover to replace lost or stolen keys and remote door openers.
- Cover for your children when they are temporarily living away from Home while attending an educational institution
As you can see Replacement Value Contents is the superior Contents Option. If you value your furnishings, consider paying a little bit extra to get a lot more.