Question: What happens if household goods are under-insured? Will I get a claim paid in full?
Answer: If there is a total loss, the maximum that can be paid out will be the sum insured.
For partial losses, both Move NZ and Transit International Household Goods policies contain an "Average Clause".
Under NZ law, the Average Clause must be described as follows:
"If at the time of loss or damage The Property Insured is collectively of a greater value than the total sum insured then you shall be considered as being your own insurer for the difference and bear a rateable share of the loss accordingly."
The uninsured value above the sum insured will be for The Insured person to bear, as per the Example following.
Declared Policy Sum Insured: $10,000 >>The claim is calculated as follows:
Claim Amount: $1,000 >>$10,000 x $1,000
Actual Value of Property: $20,000 >>$20,000 1 = $500 amount payable, before policy excess