Everything you need to know about navigating the insurance claims process in New Zealand, from start to finish
Making an insurance claim can feel overwhelming, especially when you're dealing with the stress of an incident or loss. Whether it's property damage, a liability incident, or business interruption, understanding the claims process in New Zealand helps ensure you receive the compensation you're entitled to.
This guide walks you through each step of the claims process, explains what documentation you'll need, and helps you avoid common pitfalls that could result in a denied claim.
Understanding when it's appropriate to make an insurance claim is crucial. Not every incident warrants a claim, and making too many claims can affect your future premiums.
If the cost of the damage is significantly higher than your excess, filing a claim makes financial sense.
Check your policy wording to confirm the type of incident is included in your coverage.
For significant losses that impact your business operations, a claim helps you recover and rebuild.
When liability claims from third parties arise, your insurer can provide legal defence and cover damages.
NZ-Specific Note: In New Zealand, the Earthquake Commission (EQC) covers natural disaster damage for residential properties. For business insurance, your private policy will typically cover earthquake damage, but check your specific coverage details.
Following these steps will help ensure your claim is processed smoothly and efficiently.
Contact your insurance company or broker as soon as possible after the incident. Most policies require you to notify them within a specific timeframe – often 30 days. Delays can complicate your claim or result in denial.
Take photos and videos of the damage. Gather witness statements if applicable. The more evidence you have, the stronger your claim. Don't throw away damaged items until your insurer advises you to.
Get quotes from licensed contractors or repairers for the cost of repairs. Your insurer may have preferred suppliers, or they may require you to obtain multiple quotes.
Fill out your insurer's claim form thoroughly and accurately. Provide all requested information and be honest – providing false information can void your policy.
Attach all relevant documentation including photos, quotes, receipts, police reports (if applicable), and any other evidence supporting your claim.
Your insurer will review your claim and may send an assessor to inspect the damage. They'll determine the amount payable based on your policy terms.
Once approved, your insurer will arrange payment. This may be a direct payment to repairers, or a payment to you depending on your policy structure.
Having the right documentation is essential for a successful claim. Here's what you'll typically need:
Your current insurance policy wording and schedule showing coverage details and limits.
Visual evidence of the damage or loss from multiple angles, taken as soon as possible after the incident.
If the incident involves theft, vandalism, or crime, a police report is essential. In NZ, you can report non-emergency incidents online at police.govt.nz or call 105.
Written quotes from qualified tradespeople or suppliers for repair or replacement costs.
Original receipts for damaged items, proving their value and ownership. For business assets, this includes purchase invoices and asset registers.
A written description of what happened, including date, time, location, and how the loss or damage occurred.
Tip: Keep digital copies of all important documents in a secure cloud storage system. This ensures you can access them even if physical documents are damaged or lost.
Understanding why claims are denied can help you avoid these pitfalls and improve your chances of a successful claim.
Failing to notify your insurer within the timeframe specified in your policy (usually 30 days). Always report incidents as soon as possible, even if you're still gathering documentation.
The incident falls outside your policy coverage. Common exclusions include flood damage (unless specifically covered), gradual deterioration, intentional damage, and certain types of natural disasters.
Insufficient proof of loss, missing receipts, or lack of evidence demonstrating the extent of damage or the value of items claimed.
You failed to disclose material information when taking out the policy, or you provided inaccurate information that would have affected the insurer's decision to cover you.
You didn't take reasonable steps to prevent further damage after an incident. For example, leaving a roof leak unrepaired allowing further water damage.
Exaggerating the value of a claim, making false statements, or fabricating incidents. Insurance fraud is a serious offence in New Zealand and can result in prosecution.
NZ-Specific: The Insurance Council of New Zealand (ICNZ) has a Code of Practice that sets standards for how insurers should handle claims. If you believe your claim has been unfairly denied, you can complain to the insurer's internal disputes resolution process, and ultimately to the Financial Dispute Resolution Service (FSDR).
Follow these tips to maximise your chances of a smooth and successful claims experience.
Notify your insurer as soon as possible, even before you have all the details. Early notification can prevent complications later.
Keep thorough records of all communications with your insurer, including emails, phone calls, and meetings.
Provide truthful information throughout the process. Discrepancies can lead to claim denial or policy cancellation.
Know what's covered and what's not before you need to claim. Ask your broker to explain any unclear terms.
If you have an insurance broker, use their expertise to navigate the claims process. They can advocate on your behalf and help with paperwork.
Take reasonable steps to prevent additional damage while waiting for the claim to be assessed. Keep receipts for any emergency repairs.
If you don't understand something about your claim, ask. It's your right to know the status of your claim and the reasons for any decisions.
Our experienced insurance brokers can guide you through the claims process and advocate on your behalf.