Material Damage

Material Damage

Covers your commercial buildings, contents, stock, and money as shown on your certificate.

What we cover

The FMG Material Damage automatically includes these covers and benefits.

You can select cover for accidental loss to your commercial buildings, contents, fixed plant and stock.

There’s also the option of limiting your accidental loss cover to defined events listed in the policy wording, or to fire only. Check the policy for the full list and to see what additional benefits are provided by this cover.

You can select cover for your money, including other people’s money that’s under your control, is covered for accidental loss in some circumstances including when it’s held at your premises, in transit, or at your, or your employees, dwelling.

Additional cover

The following are some of the Additional Benefits that are automatically included in your policy.  

Cover for additional buildings, machinery or plant you purchase or have built, as well as additions, alterations or improvements to existing buildings, machinery or plant, up to $100,000.

Covers up to $10,000 for professional help, for example an accountant, to prepare and present your claim. 

Covers you up to $10,000 for accidental loss to your customers’ goods at the premises, if they’re not insured elsewhere. You can choose to set a higher limit.

Up to $10,000 cover for accidental loss to electric motors and starters under 7.46kW, and distribution switchboards and electrical reticulation, caused by the failure of electrical insulation, abnormal current or electrically induced self-heating.

For policies effective from 1 July 2019, we have extended cover for motors, pumps, electrical equipment and mechanical equipment under this automatic benefit. Cover up to $15,000, and includes any reasonable additional costs (e.g. lifting and lowering, overtime charges and refrigerated replacement).

We’ll cover your additional and reasonable costs, up to $2,000, for express freight and overtime labour if it’s needed to speed up the reinstatement of your commercial property after a loss.

Covers up to $3,000 of cover for the spoilage of frozen goods stored in chambers at your premises, provided this was due to a loss under the Electrical Breakdown benefit causing a change in temperature. 

If keys you use to access your insured property are lost or stolen, we’ll pay up to $5,000 to replace them and the locks, and you won’t need to pay an excess. This also covers devices like electronic access cards and remote door openers.

If we agreed that residential accommodation can’t be lived in after a covered loss, we’ll pay up to $10,000 for alternative accommodation.

Covers up to $2,000 for labour and hire charges for the installation and removal of loan equipment, after a covered loss.

Covers your property, except for stock on consignment to a customer and portable plant and equipment, for accidental loss while it’s temporarily removed from the premises, including in transit, anywhere in New Zealand. 

Covers up to $10,000 for loss from theft, provided the theft does not involve, you, your employees or any fraudulent activity. You can also choose a higher cover limit if required.

Cover for burglary is automatically included up to the sum insured on the certificate.

The difference between burglary and theft is that burglary typically involves forcible and violent entry or exit from a securely locked building or theft accompanied by violence or threat of violence to you, your employees or customers.  Conversely, theft is opportunistic, with no forcible or violent entry or exit required for an item to be taken (e.g. taking something from an unlocked and unsecured premises).”


Optional extras

These are some of the Optional Benefits you can purchase for even more comprehensive insurance.

Cover for accidental loss to your commercial property caused by natural disaster.  This excludes indoor plants and property covered under the Earthquake Commission Act 1993.

The sum insured for your stock will be automatically increased by 25% for a four-month period shown on your certificate.

What we pay

For buildings and contents you can choose from three levels of cover - Present Day Value, Nominated Replacement or Functional Replacement.

You can choose to have your growing structures and plastic or cloth-cladded buildings covered on a Nominated Replacement basis. Portable plant and equipment is covered for replacement provided the item is up to 2 years old or otherwise Present Day Value. For glass, money, growing plants and stock what we will pay will depend on the particular qualities and requirements for these items in the event of a loss.

Repair or replacement of your items to the same condition they were in just before the loss, think of it as similar to a second hand value.

Repair or replacement of your items to the same condition as when they were brand new.

Download policy

Please note this is only a summary of the product and is subject to our specific product documentation. For full details please download the policy wordings using the links below, or you can get a free copy by calling us on 0800 366 466.


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