Tool Insurance FAQs

Get answers to the most common questions about tool insurance in New Zealand. Expert advice to help you make informed decisions.

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How much is tool insurance per month?

Tool insurance typically costs between $20-$120 per month in New Zealand, depending on the value of your tools, your occupation, and coverage level. Most tradies pay around $45-$75 monthly for comprehensive coverage.

Is tool insurance worth it?

Yes, tool insurance is definitely worth it for anyone who relies on tools professionally. The cost of replacing stolen or damaged tools often far exceeds the annual premium, making it essential financial protection for your livelihood.

How does tool insurance work?

Tool insurance protects your professional tools against theft, damage, and loss. You pay a monthly or annual premium, and if something happens to your tools, you file a claim and the insurer covers replacement or repair costs, minus any excess.

What tools are covered by tool insurance?

Most policies cover hand tools, power tools, equipment, and machinery used for business purposes. This includes items in your vehicle, at worksites, and in storage. Specific coverage varies by policy, so check with your insurer.

Does tool insurance cover theft from vehicles?

Yes, most tool insurance policies cover theft from vehicles, including vans, utes, and trailers. However, insurers may require specific security measures like deadlocks or alarms to validate claims.

Are tools covered under home insurance?

Basic home insurance typically provides limited coverage for tools, usually only when they're at your home and often with low limits. For comprehensive protection of business tools, dedicated tool insurance is essential.

Can I get tool insurance as a sole trader?

Absolutely. Tool insurance is available for sole traders, contractors, and businesses of all sizes. Many policies are specifically designed for individual tradies and sole operators.

What is the excess on tool insurance?

Excess typically ranges from $250-$1,000 depending on your policy and insurer. Higher excess options can reduce your premium, but choose an amount you can afford to pay if you need to claim.

How quickly are tool insurance claims paid?

Most insurers aim to settle straightforward tool insurance claims within 5-10 business days. Complex claims involving total loss or disputed circumstances may take longer to investigate and settle.

Does tool insurance cover accidental damage?

Many comprehensive tool insurance policies include accidental damage cover, but this varies by insurer. Basic policies may only cover theft. Check your policy wording or ask about accidental damage coverage.

Can I insure tools overseas?

Some policies provide worldwide coverage or cover for tools taken overseas temporarily. If you travel internationally with tools, check with your insurer about geographic coverage limits.

What security requirements do insurers have?

Insurers often require basic security measures like locking vehicles, secure storage overnight, and may offer discounts for additional security like alarms, tracking devices, or immobilizers.

How do I value my tools for insurance?

You can value tools at replacement cost (what it would cost to buy new) or indemnity value (current market value considering age/wear). Keep receipts, photos, and maintain an inventory for accurate valuation.

Can I add new tools to my policy?

Yes, you can typically add new tools to your policy. Contact your insurer when you purchase significant new equipment to ensure it's covered. Some policies automatically cover new purchases up to a certain limit.

What happens if I make multiple claims?

Multiple claims may affect your future premiums and could impact policy renewal. However, legitimate claims for theft or covered events should be reported. Insurers understand that tool theft can be common in certain trades.

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