# NZI — NZI Commercial Property Material Damage

**Vertical:** commercial-building
**Status:** active
**Wording effective:** 2020-12-01
**Confidence tier:** inferred
**Source PDF:** https://www.insurancepartners.co.nz/site_files/24864/upload_files/NZISteadfastMaterialDamagePolicyWordingCSR-STE(12.2020)withendorsements2.2024(005).pdf?dl=1

## Exclusions

- **0:** natural disaster damage (earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity, hydrothermal activity, or fire caused by any of these) — unless Optional Policy Extension Natural Disaster Cover applies
- **1:** war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, mutiny, rebellion, revolution, civil commotion assuming the proportions of or amounting to an uprising, insurrection, military or usurped power
- **2:** act of terrorism, including controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism
- **3:** nuclear — ionising radiation or contamination by radioactivity from any nuclear fuel or nuclear waste from combustion or fission of nuclear fuel; nuclear weapons material
- **4:** gradually developing deformation or distortion
- **5:** marring or scratching
- **6:** gradual deterioration
- **7:** rot or mildew
- **8:** wear and tear, corrosion or rust
- **9:** action of micro-organisms, vermin or pests
- **10:** action of light, or inherent nature of the property (including shrinkage, evaporation, loss of weight, change of flavour or colour or texture or finish)
- **11:** fumes, gas, dust, smoke or soot
- **12:** maintenance of insured property including servicing, cleaning and subsequent testing
- **13:** spontaneous combustion
- **14:** spontaneous fermentation
- **15:** interruption of supply of water, gas, electricity or any fuel to the situation
- **16:** total or partial stoppage of work, or interruption or cessation of any process
- **17:** change in artificially controlled temperature or atmosphere
- **18:** loss only evidenced by unexplained disappearance
- **19:** loss only revealed by taking of an inventory
- **20:** loss due to clerical or accounting errors
- **21:** theft or attempted theft (except as covered by Automatic Policy Extensions Burglary Cover, Theft Cover, Money Cover, Stolen Keys Cover)
- **22:** fraudulent scheme or device, or false pretence
- **23:** theft, attempted theft or fraud by insured or employee (except as covered by Automatic Policy Extension Money Cover)
- **24:** exposure to weather conditions if property is not designed to be left in the open (unless reasonable precautions taken)
- **25:** landslip or subsidence (except Automatic Policy Extension Landslip and Subsidence and Optional Extension Natural Disaster Cover)
- **26:** erosion or expansion of the ground
- **27:** normal settlement, normal shrinkage or expansion of buildings, foundations, walls, pavements, roads and other structural improvements
- **28:** settling, warping or cracking caused by earth or other movements (except Optional Policy Extension Natural Disaster Cover)
- **29:** building defects — moisture/water build-up or penetration, mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms caused by non-compliance with NZ Building Code, faulty design/specification, faulty materials or faulty workmanship
- **30:** confiscation, nationalisation, requisition or destruction by order of government, public or local authority
- **31:** consequential financial loss including delays, loss of market, penalties, rates, taxes, duties, development charges, loss of use of property
- **32:** cost of repairing or replacing faulty materials or faulty workmanship or faulty design plan/specification
- **33:** cost of altering or modifying refrigeration or air conditioning plant to operate with more ozone friendly refrigerant
- **34:** machinery breakdown (except Automatic Policy Extension Electric Motors Cover, Refrigerated Goods, and Optional Policy Extension Machinery Breakdown)
- **35:** boiler or pressure vessel — cost of repairing or replacing parts suffering explosion, overheating, rupture, bursting, collapse, cracking or leaking
- **36:** loss to electronic data and software from any cause including computer virus (except Automatic Policy Extension Electronic Data and Software)
- **37:** infectious diseases — notifiable infectious disease under the Health Act 1956 or notifiable disease under the Biosecurity Act 1993
- **38:** seepage, pollution and contamination (except where resulting from sudden and accidental loss to insured property otherwise covered, or Automatic Extension Illegal Substances)
- **39:** production processes — loss to insured property while undergoing any production process where any part of that process causes or contributes to the loss
- **40:** sanctions — payment contravening UN resolutions or trade/economic sanctions of New Zealand, Australia, United Kingdom, USA or European Union
- **41:** property located outside New Zealand
- **42:** asbestos removal limited to 5% of site sum insured or $25,000 (lesser) per event

## Flood Cover

Covered under the base policy as flood is not specifically excluded and the insuring clause covers 'any sudden and accidental loss to insured property at the situation'; landslip/subsidence caused by earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity or hydrothermal activity is excluded from the Landslip and Subsidence extension. No specific flood sub-limit stated in the wording (schedule may vary)

## Glass Cover

Covered as insured property (contents/building) under the base policy for sudden and accidental loss. Automatic Policy Extension Tenanted Premises covers glass, doors and windows, light fittings/power points and floor coverings not owned by insured but for which insured is responsible under lease, up to $20,000 per annual period unless schedule shows different amount

## Claims Basis

occurrence

## Excess Basis

Per event — the applicable excess is deducted from the amount payable for each event. Where an event occurs over more than 72 consecutive hours, one excess is deducted for every 72 consecutive hour period. Where a single event causes loss to property insured under this and any other policy, only the highest applicable individual policy excess applies (except for natural disaster damage)

## Flood Excess

Standard per-event excess applies unless a specific excess is shown in the schedule

## Valuation Basis

Reinstatement (replacement value) or indemnity value, depending on basis of settlement shown in the schedule; certain property types (e.g. redundant plant/spare parts, customers' goods, works of art, portable electronic equipment over 3 years old, limited lifetime construction materials) settled on indemnity basis regardless of schedule election

## Earthquake Cover

Excluded under base policy — natural disaster damage (defined as loss resulting directly or indirectly from earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity, hydrothermal activity, or fire caused by any of these) is only covered under Optional Policy Extension Natural Disaster Cover. Where insured property is covered wholly or in part by the EQC Act, this policy only pays in excess of the maximum EQC entitlement

## Earthquake Excess

Natural disaster excess shown in the schedule applies to the aggregate of all natural disaster damage claims under this policy (and the business interruption policy if applicable) arising from any one event at each common site. The natural disaster excess is reduced by any payment made by the Earthquake Commission except for payments for land

## Territorial Scope

New Zealand — insured property must be at the situation (a location in New Zealand shown in the schedule); capital additions, employee effects, temporary removal and transit extensions also limited to New Zealand; property located outside New Zealand is excluded

## Bomb Terrorism Cover

Excluded — 'This policy does not insure any loss in connection with an act of terrorism, including in connection with controlling, preventing, suppressing, retaliating against, or responding to an act of terrorism.' No terrorism pool reference or sublimit stated

## Indemnity Value Available

y — where schedule shows 'indemnity': pay cost to replace with property of similar condition, age and specification as immediately prior to loss, or cost to repair to condition immediately prior to loss, or indemnity value of damaged part. Also applies as fallback when reinstatement conditions are not met

## Machinery Breakdown Cover

Optional — cover available under Optional Policy Extension Machinery Breakdown for machines with pre-breakdown value not greater than $25,000 (or amount shown in schedule). Machinery breakdown is otherwise excluded from the base policy

## Replacement Value Available

y — where schedule shows 'reinstatement': lost/destroyed property replaced to condition substantially the same as when new; damaged property repaired to standard reasonably equivalent to condition and quality when new. Reinstatement basis does not apply if repair/replacement not commenced within reasonable period, not actually carried out, property awaiting demolition, or repair not permissible under regulations

## Reinstatement Of Sum Insured

After a partial loss the sum insured is reduced by the amount of the loss and reinstated progressively as repair/replacement progresses (if automatically covered during repair) or only upon completion (if not automatically covered). No reinstatement following natural disaster damage unless agreed in writing by insurer. Additional premium may be required for reinstatement

## Sum Insured Inflation Adjustment

none — no automatic CPI or percentage inflation adjustment described in the wording; capital additions cover provides up to 10% of sum insured or $100,000 (lesser) for acquisitions/improvements notified within 90 days

## Volcanic Tsunami Landslide Cover

Volcanic activity, tsunami, geothermal activity and hydrothermal activity are defined as natural disaster damage and excluded from the base policy — covered only under Optional Policy Extension Natural Disaster Cover. Landslip and subsidence (not caused by natural disaster perils) covered under Automatic Policy Extension Landslip and Subsidence up to $500,000 per situation per annual period with a minimum $10,000 excess per event; landslip/subsidence caused by earthquake, subterranean fire, volcanic activity, tsunami, geothermal activity or hydrothermal activity is excluded from that extension

## Machine-readable endpoints

- Facts JSON: `/api/product/nzi/commercial-property-md/facts.json`
- Summary Markdown (this file): `/api/product/nzi/commercial-property-md/summary.md`
- Full wording: `/api/product/nzi/commercial-property-md/wording.md`
- Version history: `/api/product/nzi/commercial-property-md/history.json`

## Citation

Cite as: NZI NZI Commercial Property Material Damage (NZ), CommercialBuildingInsurance.co.nz, accessed 2026-05-27.
Canonical URL: https://commercialbuildinginsurance.co.nz/api/product/nzi/commercial-property-md/summary.md
License: CC BY 4.0 — attribute https://commercialbuildinginsurance.co.nz