Updates to your insurance policy wording - August 2021
We’ve made some changes to our insurance policy wordings. See below additional new wording as well as changes to existing sections.
This is a summary of the changes that will affect your policy on renewal. Please refer to your policy wording for full details. There's a link to your policy wording in your renewal pack.
Changes to House and Landlord policy wordings (08/2021)
We are changing our Full replacement for fire benefit in all House and Landlord’s house insurance policies underwritten by Tower to an Extended sum insured for fire benefit.
Existing wording:
Full replacement for fire
If your house suffers a loss caused by fire we’ll settle your house claim with no house sum insured limit.
Limits
We’ll, at our option, replace your house, or pay you for the actual replacement cost as those costs are incurred, with a house that is the:
- square metre area shown on your certificate of insurance, or
- actual square metre area of your house before the loss
whichever is the lesser.
This benefit does not apply to fires following a natural disaster.
Where this benefit applies, the Demand surge protection on page 11 benefit does not apply.
New wording:
Extended sum insured for fire
We'll pay up to a further 20% of your sum insured shown on your certificate of insurance for your house claim if the following apply:
- your house suffers loss caused by fire
- we decide it’s uneconomic to repair your house
- the estimated replacement cost to replace your house at the situation is greater than the sum insured shown on your certificate of insurance.
Limits
The most we will pay is the lesser of:
- the estimated replacement cost to replace your house at the situation; or
- your sum insured shown on your certificate of insurance, plus up to a further 20% of your sum insured.
This benefit does not apply to fire following a natural disaster.
Where this benefit applies, the automatic benefit Demand surge protection on page 11 does not apply.
Existing wording:
How we’ll settle your claim
The maximum per event that we’ll settle your claim for is the least of:
- the actual cost to repair your house, or
- the actual cost to replace the actual square metre area of your house before the loss, or the square metre area shown on your certificate of insurance (whichever is the lesser), or
- the house sum insured as shown on your certificate of insurance, unless the automatic benefit Full replacement for fire on page 12 applies.
In all cases:
- We’ll not:
a. pay any extra cost of repairing or replacing any part of your house caused by that part not having a legally required building consent when it was built, or that part being built contrary to the building consent issued
b. pay for repairing or replacing any part of your house that has not suffered loss
c. pay for any neighbouring property’s share where you jointly own property such as retaining walls, fences, gates or driveways
d. pay the cost of repair or replacement beyond what is reasonable, practical or comparable with the original when built or renovated
e. repair or replace your house exactly to its previous condition.
New wording:
How we’ll settle your claim
The maximum per event that we’ll settle your claim for is the least of:
- the actual cost to repair your house
- the actual cost to replace the actual square metre area of your house before the loss, or the square metre area shown on your certificate of insurance (whichever is the lesser)
- the sum insured shown on your certificate of insurance.
If the automatic benefit Extended sum insured for fire on page 12 applies, the maximum per event that we’ll settle your claim for is the sum insured shown on your certificate of insurance plus up to a further 20% of your sum insured.
In all cases:
- We’ll not:
a. pay more than the sum insured shown on your certificate of insurance, unless the cover provided in the automatic benefit Extended sum insured for fire on page 12 applies
b. pay any extra cost of repairing or replacing any part of your house caused by that part not having a legally required building consent when it was built, or that part being built contrary to the building consent issued
c. pay for repairing or replacing any part of your house that has not suffered loss
d. pay for any neighbouring property’s share where you jointly own property such as retaining walls, fences, gates or driveways
e. pay the cost of repair or replacement beyond what is reasonable, practical or comparable with the original when built or renovated, other than the cover provided in the automatic benefit Sustainability upgrade on page 16
f. repair or replace your house exactly to its previous condition.
Changes to Landlord policy wordings (08/2021)
The following change applies to Landlord's Plus policy.
Methamphetamine decontamination
Limits
Existing wording:
If damage has been caused by fire, we’ll pay the costs to repair or replace that damage based on the limits in the automatic benefit Full replacement for fire on page 13.
New wording:
If damage has been caused by fire, we’ll pay the costs to repair or replace that damage up to the sum insured or if applicable, the limits in the automatic benefit Extended sum insured for fire on page 13.
Additions to House and Landlord policy wordings (08/2021)
We’re adding a new Sustainability upgrade benefit to all House and Landlord’s house insurance policies.
New wording:
Sustainability upgrade
We'll pay for you to add or upgrade to sustainable products in the build of your replacement house if all the following apply:
- your house suffered a loss covered by this policy
- we decided it was uneconomic to repair your house
- the products you’ve chosen to add or upgrade to are approved by us as sustainable.
We pay this benefit in addition to your sum insured.
Limit
We’ll pay up to a maximum of $15,000.
This benefit does not apply where the loss was caused by a natural disaster.
New wording:
Glossary
Sustainable products
Products that increase the efficiency of the house relating to energy or water that are above the levels prescribed by the Building Code. They can also be materials that reduce environmental impacts.
New wording:
Demand surge protection
Where this benefit applies, the automatic benefit Extended sum insured for fire on page 12 does not apply.