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 it has extensive fencing, you run a business, or farming activities from your property.
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 use, which includes farming) use;
- Outbuildings within residential boundaries*, such as a garage, woodshed, utility shed.
- Driveways of permanent construction that provide access to your home (gravel or shingle driveways are not covered).
- Patios, decks within residential boundaries*.
- Immediate fencing around your dwelling (and alongside the main driveway to the home) – please note that it does not include fencing outside of the residential boundary. In addition, a fence that borders a neighbouring property is covered for your share only (as determined by the fencing act).
- Walls including garden and retaining walls up to $25,000 (can be specified for a higher limit).
- Swimming pool and/or tennis court up to $45,000 (can be specified for a higher limit).
- Permanently sited water storage tank or septic tank.
We also include the following items so long as;
- they’re owned primarily for domestic use,
- but which may also have limited use for rural lifestyle purposes and
- 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:
- outbuildings that have limited use for rural lifestyle purposes such as for the storage of tools, animal feed, uninstalled equipment, or machinery and vehicles.
- 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.
* Within residential boundaries: In the context of lifestyle blocks, a “residential boundary” refers to the specific area of your property that surrounds your dwelling 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 within residential boundaries*).
- Land outside of what’s provided under the NHC cover (see the link for land NHC will cover).
- Buildings used for business/commercial use (other than a home office).
- 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.
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