Cracked screen on phone, to claim on contents insurance

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Dial111

972 posts

Ultimate Geek

#290572 20-Nov-2021 16:32

So today whilst moving my belongings out of my house as we are relocating cities shortly, I jammed my phone in the door of the moving truck and broke the screen, no biggie I have contents insurance..

Here's the moral dilemma I'm faced with. I'm moving cities next week and my belongings will be stored in a storage unit until our house is built so I don't need contents insurance as I have insurance through the storage company so planned to cancel my house and contents (I'll keep car insurance) this Monday when I have settled the purchase of my house and moved out.

Will claiming on the phone and then cancelling almost immediately effect my claim and morally I feel like it will come across to the insurer as a quick grab and run before cancelling 2 of the 3 policies I hold.

Alternatively I could keep paying the policies until my claim has gone through.

Or should I not feel bad as it is what it is.

timmmay

20512 posts

Uber Geek

Trusted

Lifetime subscriber

#2816210 20-Nov-2021 16:44

You should probably keep the insurance until your claim is settled. So long as you're within the T&C of the policy don't worry about it.

lNomNoml

1805 posts

Uber Geek

ID Verified

#2816212 20-Nov-2021 16:48

Tbh not really a moral problem, claim while you have insurance since that is what you pay for , cancel the insurance after since your circumstances have changed, they don't care morally so why should you, you are not doing it out of spite or anything it's just he timing of things.

PolicyGuy

1717 posts

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Lifetime subscriber

#2816225 20-Nov-2021 17:35

I would think very hard about cancelling the house structure policy

Firstly, depending on where you're building, it may be absolutely necessary to hold on to your house structure policy and transfer it to the new house. Not all insurance companies will start new policies in all locations, but almost all will transfer an existing policy to a new property in an otherwise 'banned' area.

Secondly, If an earthquake or other natural disaster should occur, if you're uninsured then EQC will just "shrug & walk away". This was a bitter lesson for people in Christchurch who ended up with munted sections and no entitlement to compensation - IIRC Gerry Brownlee eventually allowed some of them up to half the value they'd paid for their section as an ex gratia payment.

I would talk to your insurance broker / agent or the company to work out what's best.
They might allow premiums to be suspended for a period or something like that without lapsing the policies.

Also, how can you cancel your contents policy?
Most of your stuff will be in storage, but surely you're not going naked and toyless for the build period? ;)
Presumably you still have some clothes, a phone, a laptop and/or tablet, etc., etc., and those still need insuring.

Again, talk to your insurer about a reduced premium for the period when the value of the goods they're carrying is markedly less

gbwelly

1238 posts

Uber Geek

#2816232 20-Nov-2021 18:19

What is your excess? I'd be surprised if it was worth claiming.

Dial111

972 posts

Ultimate Geek

#2816297 20-Nov-2021 20:29

lNomNoml:
Tbh not really a moral problem, claim while you have insurance since that is what you pay for , cancel the insurance after since your circumstances have changed, they don't care morally so why should you, you are not doing it out of spite or anything it's just he timing of things.

Thanks, the push I needed, I have put in a claim I'll likely hear back Monday now.

@PolicyGuy - Cheers! some food for thought in regards to holding onto contents insurance, I may insure for less as you're right, I'll have all my 'toys' and clothes with me. We are moving from shakey Canterbury to Auckland, I think we will be ok.

gbwelly: What is your excess? I'd be surprised if it was worth claiming.

Excess is $250, phone is iPhone 13 Pro Max