We have outlined some common insurance terms below to help you understand insurance better. For a full definition of the terms please refer to your policy document.
Claim
The action taken to obtain the benefits of an insurance policy when a loss happens that’s covered by the policy.
Cover
The amount of protection provided by an insurance policy.
EQ Cover
The cover provided by the Earthquake Commission. For your Home and Contents cover you pay a compulsory levy for the EQ cover.
Excess
The amount a person making the claim contributes towards the cost of a claim. For example, the standard excess for Homeowners cover is $250, so the person pays the first $250 of any Homeowners claim. State pays the rest. The excess is deducted for each and every event.
Family
A family is two close family members travelling either:
- together, or
- with their children or grandchildren under the age of 21 who are not self supporting.
A close family member is your:
- spouse, de facto partner, fiance, fiancee, or
- child, step-child, grandchild, or
- brother, sister, brother-in-law, sister-in-law, or
- son-in-law, daughter-in-law, or
- parent, step-parent, grandparent, guardian, parent-in-law.
Imposed Excess
An excess that we have applied to your insurance cover due to your personal situation.
Indemnity Value
An item's current value allowing for its age and condition immediately before the loss or damage happened.
Individual
An individual is one person travelling either:
- on their own, or
- with their children or grandchildren under the age of 21 who are not self supporting.
Legal Liability
When you are found to be responsible, usually in respect of property damage or injury, by the courts, a tribunal, arbitration or agreement.
Liability
Responsibility for injury or damage caused.
Linked Policy Discount
If you insure both your home and your contents at the same address, you can choose to link them as a single policy called HomePack, which may qualify you for our Linked Policy Discount.
Multi Policy Discount
If you have your contents insured with State, when you take out another home, car, contents, motorcycle or landlord policy with us you may qualify for a Multi Policy Discount.
No Claim Discount
The amount by which your renewal premium is reduced if you don’t make a claim under your insurance policy for one or more consecutive years.
No Claim Discount for Life
With State we have a 65% Maximum No Claim Discount for Life for qualifying customers. To find out more about how this works click here.
Pre-existing Medical Condition
- a physical defect, medical condition or disease for which medical treatment or advice has been received during the six months prior to applying for State Travel Premier or State iTravel cover, or
- an ongoing medical condition or disability that exists when applying for State Travel Premier or State iTravel cover.
Some pre-existing medical conditions are automatically covered under State Travel Premier and State iTravel policies. To find out more, click here.
Premium
The money that must be paid for your insurance policy. Depending on the type of cover you have, your premium is made up of:
- The company premium which goes to State
- The Earthquake Commission Levy
- The Fire Service Levy
- GST
Present Value
The reasonable cost to repair or replace an item in New Zealand that is of comparable age, quality and capability, and is in the same general condition.
Specified Item
Any Item that is listed in the policy schedule with a corresponding specified sum insured.
Sum Insured
The amount an insurance policy covers.
Working
State Travel is designed for travellers who are not working during their holiday. If you are working we are happy to provide cover for the period you are travelling until you commence work. If you would like to discuss this further, please call us on 0800 155 777.
Years of Insurance Discount
If you have held your insurance policy with us for more than a year you may qualify for a Years of Insurance Discount.