General insurance products and cover (personal and commercial lines)
What this domain tests
Product knowledge across personal and commercial lines: what is covered, what is excluded, how policy documents fit together, and how New Zealand's natural hazard cover interacts with private policies.
Personal lines
- House: the dwelling and permanent outbuildings; sum insured should reflect rebuild cost, not market value.
- Contents: movable property; often includes temporary accommodation and liability extensions.
- Motor: private vehicle cover, including third-party, fire and theft, or comprehensive.
- Travel and lifestyle: cancellation, medical, baggage; boat, pet and rural cover have their own wordings.
Commercial lines
Material damage, business interruption (indemnity period and gross profit), public and products liability, statutory liability, motor fleet, cyber and management liability. Commercial policies commonly use extensions, sub-limits and endorsements.
Policy structure
Schedule (names, sums insured, excesses, period), wording (insuring clause, exclusions, conditions), endorsements and disclosure documents. The schedule does not override the wording; read them together.
EQCover
Toka Tū Ake EQC provides natural hazard cover for residential buildings and land, subject to a capped amount per dwelling and an excess. Contents are not covered for natural hazards. Private insurers may top up above the cap and cover items outside EQCover.
Worked example
An earthquake damages a home. EQCover responds first for the building within its cap and excess; the private insurer pays the portion above the EQCover cap, plus covered contents damage under the contents policy. The adviser must explain the two excesses and the cap so the client does not assume 'full cover'.
Traps
- Assuming contents are covered for earthquake.
- Confusing the schedule with the full policy.
- Missing exclusions for gradual damage, maintenance or faulty workmanship.
- Forgetting business interruption sub-limits and indemnity periods.