Insurance Hub: Material DAmage & Business Interruption
Material Damage Overview
This summary provides an overview of the coverage and conditions of the Material Damage section of Anglican Insurance Board Risk Management Limited Material Damage and Business interruption Policy. For an explanation on specific details, please contact insurance@anglicanmovement.nz.
Period of cover: 1 Jan 2025-1 Jan 2026
What is Covered
Physical loss or damage to insured property that is unintended and unforeseen during the policy period.
Includes coverage for buildings, contents, stock, machinery, money, portable electronic equipment, refrigerated goods, shade sails, monuments, and works of art, among others.
Key Extensions
Alternative Residential Accommodation: Covers costs for temporary accommodation if residential property is uninhabitable due to insured damage.
Capital Additions: Covers new property acquired during the policy period.
Hazardous Substance Emergencies: Covers charges from Fire and Emergency NZ for hazardous substance emergencies.
Hidden Gradual Damage: Covers water damage from leaking internal pipes discovered during the policy period.
Landslip and Subsidence: Covers sudden and unforeseen damage caused by ground movement, excluding gradual subsidence or erosion.
Lost or Stolen Keys: Covers costs to replace locks and keys if lost or stolen.
Temporary Removal: Covers insured property temporarily removed from the premises for up to 3 months.
Transit: Covers insured property while in transit within New Zealand.
Unlawful Substances: Covers contamination caused by illegal drug activities under specific conditions.
Conditions
Prompt notification of claims and steps to minimize damage.
Progress claim payments are made with acceptable evidence, but overpayments must be refunded.
Reinstatement of the sum insured is possible under certain conditions.
Insurers may inspect damaged property and manage salvage.
Exclusions
Consequential economic loss (e.g., loss of profit).
Damage due to production processes, faulty design, wear and tear, or gradual deterioration.
Damage caused by natural disasters unless specified.
Damage caused by war, terrorism, nuclear events, or communicable diseases.
General Conditions
Notify insurers within 60 days of any change in risk or use of premises.
Deductibles apply, and the highest deductible will be used for claims involving multiple deductibles.
Fraudulent claims will result in forfeiture of benefits.
GST is added to claim payments if recoverable.
Insurance is voidable in case of material misrepresentation or non-disclosure.
Insurers have subrogation rights to recover losses from third parties.
Policy is governed by New Zealand law.
General Exclusions
Damage caused by asbestos, biological/chemical materials, defective workmanship/design, deterioration, unexplained disappearance, prior damage, interruption, land movement, machinery breakdown, money, nuclear events, terrorism, theft by employees, and unoccupancy for more than 60 days.
busines Interruption Overview
This summary provides an overview of the coverage and conditions of the Business Interruption section of the Anglican Insurance Board Risk Management Limited Material Damage and Business interruption Policy.
For an explanation on specific details, please contact insurance@anglicanmovement.nz.
What is Covered
Loss of income due to interruption or interference with business operations caused by damage to insured property.
Covers loss of gross profit, revenue, and additional costs incurred to maintain business operations.
Key Extensions
Alternative Accommodation for Residents: Covers costs for relocating residents and their belongings if their unit is uninhabitable due to damage.
Claim Preparation Costs: Covers costs for assessing and preparing valid claims.
Occupational Right Agreement: Covers losses related to capital sums or fixed deductions owed to residents if property cannot be reoccupied or resold due to damage.
Redeployment Costs: Covers costs for relocating employees permanently to alternative sites.
Severance and Redundancy Payments: Covers payments legally required for employees terminated due to damage.
Conditions
Prompt notification of claims and steps to minimize business interruption.
Progress claim payments are made with acceptable evidence, but overpayments must be refunded.
Insurance ceases if the business is wound up or permanently discontinued unless agreed otherwise.
Exclusions
Losses from offshore gas dependency.
Losses due to accumulated stocks, fraud, misrepresentation, or cessation of business for reasons other than damage.
Losses caused by war, terrorism, nuclear events, or communicable diseases.
General Conditions
Notify insurers within 60 days of any change in risk or use of premises.
Deductibles apply, and the highest deductible will be used for claims involving multiple deductibles.
Fraudulent claims will result in forfeiture of benefits.
GST is added to claim payments if recoverable.
Insurance is voidable in case of material misrepresentation or non-disclosure.
Insurers have subrogation rights to recover losses from third parties.
Policy is governed by New Zealand law.
General Exclusions
Damage caused by asbestos, biological/chemical materials, defective workmanship/design, deterioration, unexplained disappearance, prior damage, interruption, land movement, machinery breakdown, money, nuclear events, terrorism, theft by employees, and unoccupancy for more than 60 days.
Insurance Renewal
Our policy renews on 1 Jan every year. If you require changes to your cover we need to know by mid-October in order.
2026 Insurance Renewal Form - due 12 October 2025
2026 Insurance Review Workbook (.xlsx) (password: Jesus15Lord)
2026 Insurance Review Guide (.pdf)
Insurance Options Explained (.pdf)
AIB Loss Prevention Checklists
Unforeseeable Losses & Loss Prevention
The purpose of insurance is to insure against unintended or unforeseeable losses. Our policy document states:
“If any physical Loss or Damage - unintended and unforeseen by the Insured - happens to any Insured Property during the Period of Insurance, the Insurer/s will indemnify the Insured for that Loss or Damage subject to the terms and conditions and exclusions of this Policy and any memorandum thereto.”
When is a loss foreseeable?
A loss is generally unforeseen when it occurs suddenly and without any prior signs or warnings.
It becomes foreseeable when:
you knew about the issue,
you reasonably should have known based on the signs, or
you've had previous similar losses and didn’t take steps to prevent them happening again.
Examples
You know the loss is likely to happen. This is when you are aware of a hazard or condition and you understand that damage is probable rather than merely possible.
You know the guttering is blocked after several heavy downpours, and water has already started pooling near the foundation. You don’t arrange cleaning or repairs, and the next storm causes interior water damage.
You’ve had warnings or signs a reasonable person would recognise. These are situations where even if you personally didn’t expect damage, the warning signs were clear.
The sound system repeatedly cuts out and emits burning smells. You continue using it until an internal electrical failure damages equipment and wiring.
You intentionally expose property to a known risk. This is when you knowingly take an action that greatly increases the likelihood of damage.
Storing large quantities of cardboard or donated goods directly against electrical switchboards or heaters, ignoring standard safety guidance.
You discover a problem but delay taking action. If you know something needs attention but you postpone repairs or checks, any resulting loss may be considered foreseen.
A window latch breaks, leaving the window unable to be fully closed. Months later, a storm causes rain to blow inside and damage flooring.
The damage develops gradually over time. Gradual deterioration is almost always foreseeable, especially in older church buildings.
Corrosion around old plumbing fittings causes slow seepage that eventually results in water damage.
You’ve experienced multiple losses of the same kind and done nothing to mitigate them. If the same type of incident keeps happening and you take no steps to reduce the risk, insurers can treat the next occurrence as foreseeable.
You have multiple burglaries over two years through the same unsecured window. You don’t install a lock, alarm sensor, or security film. Another break-in occurs — this may be seen as foreseeable.
Preventing Losses
Strong loss‑prevention measures are one of the most effective ways to keep premiums manageable and reduce the risk of a claim being declined. We recommend inspecting your buildings regularly for signs of damage and ensuring you have appropriate loss‑prevention practices in place. Consider the following measures:
Good security measures – for example: intruder alarms, alarm monitoring, security patrols, making sure windows and doors are securely locked when the building is not in use, helpful neighbours keeping an eye out, security cameras.
Fire prevention and detection – for example: smoke or heat detectors, alarm monitoring, sprinklers, fire extinguishers in kitchens, replacing old electrical wiring, keeping wheelie bins secured and away from buildings, keeping grounds well maintained.
Good building maintenance – for example: fixing leaks in roofs and windows, upgrading old electrical wiring, keeping trees trimmed to avoid touching buildings.
AIB has a number of useful checklists to help us assess our properties areas of risk. We recommend working through them.
Natural Disaster
Under the Diocesan Natural Disaster Insurance Policy, all Mission Units that don’t carry their own Natural Disaster cover pay a levy to collectively cover selected buildings within the diocese.
See the Natural Disaster Centrally Insured Assets for 2026 for the buildings covered by this policy.
Excesses
Non-tenanted residential (i.e. vicarages) - $1,000
Tenanted residential - $3,000
Water damage (other than residential) - $5,000
Everything else - $3,000
