AA Insurance introduces Replacement Cover

AA Insurance introduces Replacement Cover to protect customers

Auckland, 12 September 2016 – AA Insurance is introducing full home replacement cover for damage caused by things like fire, flood or storm. It’s a significant move, and a timely one as recent data shows there has been a leap in fire claims.

“We’re confident that our new Replacement Cover is one of the most comprehensive offerings in New Zealand,” says Aaron Dickinson, Head of Product, AA Insurance. “This means that in an event other than a natural disaster, AAI customers will receive full replacement cover, even if it costs more than their Sum Insured. In the case of damage caused by a natural disaster, a customer’s Sum Insured will be used to settle the claim.”

Since late 2012, homeowners and landlords have been responsible for calculating the Sum Insured figure for their own property. After feedback from customers however, AA Insurance has now introduced Replacement Cover to give homeowners this new settlement option - full replacement cover for non-natural disasters - on all new and renewing Home and Landlord policies.

“We appreciate some customers have had difficulty calculating an accurate Sum Insured and understand it can be stressful contemplating whether the amount calculated is enough,” Aaron continues. “So we wanted to make it less stressful and provide them with greater peace of mind with their cover.”

Aaron says it’s interesting to note that AA Insurance data shows there were more fire claims worth $20k+ in May 2016, than any other month during the previous financial year, with the majority of fires caused by unattended heaters, appliances and cooking.

“While the total loss of a home due to fire is rare, it can be devastating for those who lose their property and its contents, such as one couple who caused $200,000 worth damage to their home and belongings after leaving a pot of oil on the stove while cooking dinner.”

However, this doesn’t mean customers hand over all of the responsibility to their insurer. “Calculating and providing an accurate Sum Insured figure for your home is still important, as it is a requirement for Replacement Cover,” he says. “As long as customers take reasonable steps to provide us with an accurate size of their home and Sum Insured calculation, we will look after them, should the worst happen.”

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