Insurance advice - Flooded on Wednesday

[Psilan]

Having to make a few claims and wondered if someone could give some advice on insurance?

I have 2 kitchen units, incomplete pieces. 2.4m, drawers with blum runners, no benchtop, no drawer covers. It was stored in the garage awaiting install.
Flood damage has ruined it.

AMI say it is a fixture covered by the home policy and they won't compensate. (I have IAG for home policy)

Some emails;

AMI;

We have looked into the criteria and under the Insurance Council of New Zealand it has been determined that items which include House Components (such as joinery, kitchen benches and accessories that would be installed in a house) would fall under the House Policy.

Your contents policy only covers items of your contents or household appliances and furniture’s not fixtures and fittings that would be installed or used as part of a house.

ME;
Advised that it wasn't fixed and was just stored.

AMI;
Unfortunately it does not make a difference and they would still not be covered under the contents policy as they are a fixture and fitting for a house.
...

Their CONTENTS document says "Not covered: fixtures or fittings permanently attached to your house or any building".
Their HOME document "Does not cover: "fixtures or fittings that are not permanently attached"

Advice appreciated .

[Psilan]

AMI Home policy (note I am with BNZ IAG for Home)then states;

Does not cover: "fixtures or fittings that are not permanently attached"

Lol....

[donna]

if they're covered under the home policy then that's where you go for the claim….or am I missing something?

cheers,

Donna

[Psilan]

I don't think it is covered under home by AMI's definition. This requires another claim to be lodged with a different company, another excess ($400).
Edited to clarify slightly.

[Psilan]

By definition it also appears this is not considered a fixture.

[Keys]

Interesting. Just had a chat to my office neighbour who is a broker. He has been told by insurance companies following the swarm of earthquakes lately, that the house cover is anything which would normally be sold with the house. IE, stove, carpets (glued or nailed) curtains.

[Psilan]

I would agree. The kitchen stored is something (at this stage) I would not leave at the house if sold. It appears to legally be a chattel rather than fixture.

Clarified with the AMI manager who said it is definitely not covered.

AMI
A contents policy only covers:
· Home Furniture
· Home Appliances – this is where the fixtures and fittings permanently attached not being covered comes in – referring to dishwashers and items that are plumbed in and not portable
· Carpets not glued down, curtains
· Personal Effects
· Other house hold items that are used in the house.

As a kitchen bench is not an item of contents and is not furniture or an appliance it is therefore not covered under the policy.

The Contents Policy is in existence to items you would take with you when moving home and does not include kitchen cabinets, building materials or items used in conjunction with the house.

I have to make a claim with BNZ/IAG now and unfortunately pay $400 excess on this one.

One flood;
$300 excess car
$250 excess contents
$400 excess home

At least IAG are sending around an assessor to discuss and review everything incl some fence timber I had stored and possibly the garage floor and walls.

[Bob Kane]

I would argue that the items stored in the garage are personal effects. I assume you go around collecting things and have acquired these two kitchen units amongst other such stuff and one day you might actually install them somewhere. I also assume you have a kitchen in the house and weren't going to install the damaged units in your kitchen.
I guess you can see why it's a good idea to use the same insurance company for both house and contents.
I think the problem is using the word 'kitchen units'.
AMI now think you're talking about cupboards/drawers that are fixed to the house and they won't budge.

[Wayne]

So if it was the kitchen for the house concerned stored in the basement waiting to be installed then fair enough - home policy.
But if it a kitchen for another house etc then it is personal effects and contents.
I would have thought.

[Psilan]

Kitchen to be installed in garage as a garage unit.
AMI understood completely what the situation was and it appears plain to them that it is not contents.
Their policy documents however are very unclear.

[Wayne]

Kitchen to be installed in garage as a garage unit.
AMI understood completely what the situation was and it appears plain to them that it is not contents.
Their policy documents however are very unclear.

I would have said it was a fixture then - just a differance in timing (not quite fixed yet).

[Psilan]

IAG(BNZ) rejected claim saying not home insurance. AMI reject claim saying not contents.
I guess it's the complaints process now .

[Wayne]

do each know the others position?

[speights boy]

^ IAG owns AMI.

[Psilan]

Yea they have both been advised of each others positions. It's pretty funny really. I'm waiting to hear back from AMI (contents) - whom I think are in the wrong.