It is commonly believed that the policies and cover offered by insurers are similar, or the same, and that pricing is the only obvious consideration. In reality, insurance policies can be complex and the cover available from insurer to insurer differs. 

An insurance broker (broker) uses their experience to guide you through the differences in cover and to provide you with advice that is tailored to your needs.

In the event of a claim, your broker will also assist in managing the claims process and advocating, with the insurer, on your behalf.

Typically, brokers earn a commission from the insurer(s).  This is a percentage of the insurance premium paid by their client (you), for the policies placed with the insurer(s). 

It is becoming more frequent for some brokers to charge a fee to their client for their service and advice rather than receiving commission from the insurer.

For retail clients (which includes those that are consumers who purchase domestic covers including house, contents, private motor vehicle and pleasurecraft), the broker is required to disclose their earnings to you for the advice they provide, whether it be by commission or fees.  This information should be presented within the quote you receive from your broker.  If you are unable to find it, you can ask how they are paid and the amount they receive.

Yes, you can.  In the first instance we recommend contacting your broker (the person you deal with) to advise them you are dissatisfied.  This gives them an opportunity to understand your concerns and respond. 

If you are uncomfortable talking to your broker, you can contact their manager or the principal of the broking company you received the advice from. 

All insurance broking companies are required to have and follow a complaints process.  Information about the complaints process should be available on their website under a heading such as “complaints” or “disputes“.  If they do not have a website, you can ask for the complaints process to be sent or emailed to you.

Once your formal complaint is received (as set out in the complaints process) they will review it internally and respond to you.

If the matter is unable to be resolved to your satisfaction, you will have reached a “deadlock”.  You can then escalate it to the brokers Disputes Resolution Scheme.  This scheme is independent of the broker and broking company.  They will review your complaint and aim to find a way to resolve the matter.  This is at no cost to you and details of which scheme your broking company belongs to will be on their website or can be sent to you by them.

Under the Building Act 2004, local authorities are required to issue building consent for construction on land subject to natural hazards, provided the work will not accelerate, worsen, or cause a hazard on the site. When consent is granted under these conditions, the council will issue a Section Notice, which is recorded on the property title.

A Section Notice serves to alert anyone with an interest in the property, such as potential buyers, banks, insurers, or lenders of the natural hazard risk.

If a claim is later made for damage caused by the same type of hazard listed in the Section Notice, the Natural Hazards Commission (NHC) may fully or partially decline the claim.

This could also affect the "above cap" portion of cover (i.e. costs exceeding the NHC’s $300,000 limit), as many private insurers will only pay their share once the NHC accepts its portion of the claim.

No, a broker should act in accordance with your instructions.  A broker is an intermediary between you and the insurer.  Appointing a broker to place your insurances makes them your agent. This means they can act on your behalf and must follow your instructions. It does not give them authority to take any action on your behalf, unless directed by you to do so. 

If a broker considers that there is an issue with your instructions or they are not in your best interests, they can advise you of this.  If you continue to disagree with their advice and they feel strongly that your instruction is not the correct course of action, they may resign as your broker.

Yes.  As of 15 March 2023, brokers (as financial advisers) are required to have completed a New Zealand Certificate in Financial Services (Level 5) in order to provide regulated financial advice.

In addition, all brokers must either be registered as a FAP (Financial Advice Provider) themselves or be employed by a FAP on the Financial Service Providers Register (FSPR).

You can confirm that your broker, (the individual) or FAP, is registered on the FSPR by searching here on the New Zealand Companies Office website.  As well as showing the FAP, and which individual brokers/financial advisers operate under the FAP, the FSPR also lists the details of the Dispute Resolution Scheme they belong to.

The first step when dealing with an unexpected event which has caused loss or damage to your property, or loss or damage to another party, is to contact your broker. They will guide you through registering a claim with the insurance company and assist throughout the claim, negotiating and advocating on your behalf.

Yes, you must not incur any costs without authorisation from your insurer to do so. 

The exception to this is when you need to incur costs to mitigate further damage. For example, a water pipe that has been punctured and is now leaking water everywhere and requires a plumber to come and repair the leak to prevent the water damage from escalating, or a window has been smashed and requires urgent replacement by a glazier to ensure the building is secure.

Your broker will be able to help you with this.

Along with the completed claim form, you will need to provide evidence of the loss, damage or event.

This may include:

• Photos of the damage
• Proof of ownership for the item/s being claimed on, such as receipts.
• A copy of the Police Acknowledgement Form, if applicable for example theft, burglary, malicious damage
• Quotes for repairs/replacement
• A letter that holds you liable or responsible for loss or damage, alleged to have been caused by you to another party

Further information may be required in addition to the above, your broker will be able to advise you about that if it is needed.

Your insurer may also appoint a specialist, such as a motor vehicle assessor, loss adjuster or investigator to be involved in or review the claim

If you are unhappy with a claim decision or settlement you should initially discuss it with your broker to find out more about what led to the decision made.  Sometimes this can help you understand and accept the outcome.

If you continue to feel the claim decision is unjust you may request your broker advises the insurer you are dissatisfied and the reason(s) for that.  This will trigger a review of the claim through the insurer’s complaints process. 

Like brokers (as set out in FAQ 3 above), insurers are required to have in place a complaints process which includes an internal review and then escalation to an independent Disputes Resolution Scheme if you continue not to be satisfied with the outcome and are deadlocked. 

The Disputes Resolution Scheme will review your complaint and aim to find a way to resolve the matter. This is at no cost to you and details of which scheme your insurer belongs to will be available on the insurers website, can be sent to you or will be advised by your broker.

In New Zealand, when you purchase insurance for your house an Natural Hazards Insurance (NHI) levy is automatically included to provide cover for claims arising from natural disasters. 

The Natural Hazards Commission (NHC) acts like an insurer and covers damage to your home, or to the land immediately surrounding your home, in the event of one of the following natural hazards:    

• earthquake
• landslide (also known as a natural landslip)
• volcanic activity
• hydrothermal activity
• tsunami
• storm or flood (land cover only)
• fire caused by any of the natural hazards listed above.

You may also be covered for imminent damage, which is damage that hasn’t happened yet, but is more likely than not to happen in the 12 months following the natural hazard event.

The NHC will contribute up to $300,000 for each natural hazard event.. To understand what is and isn’t included, please review the full details and restrictions of NHC cover here.  If the cost of damage exceeds $300,000, your private house insurance should cover the remainder, up to the limit specified in your policy. We recommend checking with your insurance broker to ensure you fully understand the coverage you have in place.