or a full-blown rebuild?

So, you’ve bought a do-up. You’ve watched the videos, binge-scrolled the before-and-afters, and maybe even recruited your dad for “a quick paint job” that’s already turned into three weekends and a strained hamstring.

But before you swing that sledgehammer (or hire someone who will), it’s important to know this:

Initio’s house flip insurance is for light, cosmetic renovations only. If you’re planning structural changes, you’re going to need something stronger than paint, and a different type of insurance

Take our highly scientific quiz to find out whether your reno project is House Flip cover material – or heading straight into contract works territory.

1. You walk into your reno project. What’s your first thought?

A) “Needs a paint, new carpet, maybe swap out the taps.”
B) “Where’s the floor gone?”
C) “This’ll be nice… once it has walls again.”

2. The most powerful tool you’ll be using is:

A) A paintbrush or maybe a multitool if you’re feeling spicy.
B) A power saw, demolition gear, and a hard hat.
C) Your builder’s number on speed dial.

3. You can currently see:

A) A slightly dated 90s kitchen.
B) Sunlight coming through the roof… and the floor.
C) Straight through the house from the front door to the back wall.

4. Would you sleep overnight in the house right now?

A) Yep, just need to bring a mattress.
B) Only if I had a tent.
C) Not unless you paid me and provided a hazmat suit.

5. What’s your builder mate’s reaction when you show them the place?

A) “Easy weekend job, bro.”
B) “Oof… brave.”
C) “This isn’t a reno, it’s an archaeological dig.”

Your results:

Mostly A’s – You’re flipping, not flattening.

✅ You’re doing surface-level, cosmetic renos. That’s exactly what initio’s House Flip cover is for. Paint away.

Mostly B’s or C’s – Sorry, you’ve crossed into structural territory.

🚧 This is no longer a ‘flip’ – it’s a major rebuild, and you’ll need contract works insurance to protect your property properly. Check out our mates at Builtin for that.

Now that you know where you stand…

If you have a home ripe for a bit of a quick freshen-up that’s;

• currently liveable
• structurally sound
• no major unrepaired damage
• no significant outstanding maintenance
• no weathertightness issues

Then it’s likely we can provide cover under Initio’s House Flip policy.  Here’s a quick refresher on what Initio’s House Flip policy does and doesn’t cover:

 

✅ Covered (short-term cosmetic renovations)

• Painting
• Carpet and flooring
• Replacing kitchens or bathrooms
• Removing non-load bearing walls
• Minor updates that leave the bones of the house alone
• A liveable home from the date of the policy inception, ie must have bathroom, kitchen and sleeping facilities

If your tools fit in a ute tray and your plans fit on a single A4 page, you’re probably sweet.

❌ Not covered (structural renovations)

• Re-roofing
• Extensions
• Recladding
• Replacing or removing load-bearing walls
• Work that requires building consent or council sign-off
• Long term projects

These need a contract works policy, because once you start touching the bones of the house or it’s raincoat, the risk profile changes completely.

We’re not just being picky. Insurance needs to match the level of risk, and a cosmetic tidy-up is a very different beast to a half-demolished house with no roof.

What about insurance while the work is being done?

If the reno is cosmetic only, our House Flip cover gives you short-term insurance for the period of renovation. It covers things like fire, theft, and liability while you’re on site giving the place a facelift.

But if there’s structural work involved, you’ll need to pair your house insurance with a contract works policy. We’ve teamed up with BuiltIn Insurance—NZ’s contract works experts—so you can get sorted online quickly, and keep everything under the same insurer umbrella (IAG).

House flipping is all fun and games until someone removes a load-bearing wall.

Get the right cover for the job – and if you’re still unsure, we’re just a call or click away.

 

Ready to get started?

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Other relevant information

• When do I need contract works insurance?
• Are renovations or extensions to my home covered?
• House flip insurance