Own a lifestyle block or rural property?

Understanding your cover with initio

Owning a lifestyle block in New Zealand offers the best of both worlds – the comfort of a home and the freedom of rural living. Knowing your insurance policy well is key to ensuring you’ve got the cover you need. Here’s some things to consider when insuring your lifestyle block home(s) with Initio. You can get insurance for your home if it’s on a lifestyle property with our standard house and contents cover. However, be aware of a few things, especially if you run a business or farming activities from your property, or if it has extensive fencing.

What IS covered

Regarding your home, your policy outlines what is included in the definition section of the policy document.  It includes (but is not limited to) the following items, providing they’re used solely for domestic residential (not commercial, including farming) use;

• Outbuildings within residential boundaries*, such as a garage, woodshed, utility shed.
• Permanent driveways that provide access to your home
• Patios, decks within residential boundaries*
• Immediate fencing around your home (within residential boundaries* and along access driveway to the home) – please note that it does not include fencing used solely for paddocks.  In addition, any fence that borders a neighbouring property is covered for your share only (as determined by the fencing act)
• Landscaping and Gardens: We cover costs to restore or rebuild your garden or lawn within the home’s residential boundaries if they are damaged along with the home for an insured loss, up to $2,500
• Walls including garden and retaining walls up to $25,000 (can be specified for a higher limit)

• Outbuildings within residential boundaries* that have limited use for rural lifestyle purposes such as for the storage of tools, animal feed, uninstalled equipment, or  machinery and vehicles,
• Swimming pool and/or tennis court up to $45,000 (can be specified for a higher limit)

We also include the following items so long as;

1. they’re owned primarily for domestic use, 
2. but which may also have limited use for rural lifestyle purposes and
3. they are not valued above the amounts shown below. If the items do have higher values, then there is no cover unless otherwise agreed and stated on your policy schedule:

• private utility plant and associated equipment, including, but not limited to, wind or water mills, or diesel generators, with a replacement cost of no more than $10,000.  
• Any bridge or culvert, permanent ford or dam, with a replacement cost of no more than $15,000
• Any well or borehole including its pump, lining or casing, with a replacement cost of no more than $10,000.

*In the context of lifestyle blocks, a “residential boundary” refers to the specific area of your property that surrounds your home and is distinct from agricultural or paddock areas.

What’s NOT covered

• Farmer’s liability – Liability arising from farming activities, eg. stock/farm animals escaping and causing damage to third parties.
• Farm fencing (that’s not part of your residential boundary)
• Land outside of what’s provided under the NHC cover – they currently do provide some cover for land;
  • under your home
  • under some related buildings and structures, eg. home garage
  • within 8 metres of your home, and some related buildings and structures
  • under or supporting your main access way up to 60 metres from your home, for example under your driveway,
• Buildings used for business/commercial use (other than a home office)
• Outbuildings outside of the residential boundaries of the home
• Live plants/trees
• Stock/farm animals
• Tractors
• Farm bikes

Key takeaways

Initio’s policy covers a residential home on a lifestyle block, including some limited farm use of buildings and contents. However, it doesn’t cover liability for farming activities or farming equipment. It’s important to know the exclusions, especially those related to farming activities, natural disasters, and specific property features. Always check your policy details and reach out if you have any concerns.

If you have specific questions, feel free to contact us. We’re here to help you understand and maximize your coverage where we can.

Other articles of interest: 

• Choosing the right insurance
• Can you insure a tiny home?