Is NOT insuring ever worth it?
Smart moves, part V
In this edition of the Smart Moves series, we tackle a question some seasoned investors eventually ask: should I self-insure? Graeme Fowler shares why, even with decades of experience, it’s not a gamble he’d take.
Have you ever seriously considered not insuring?
“Not once. Even if I owned 500 houses outright, I wouldn’t do it. The risk is just too big.”
Graeme says the idea of not insuring, or ‘self-insuring’ – where you skip traditional insurance and rely on your own reserves to cover any potential loss – might sound appealing to confident investors. But in reality, it’s a dangerous bet.
From initio: Some landlords toy with self-insurance after years of no claims. But it only takes one event – a fire, a major flood, an earthquake – to wipe out years of progress. Comprehensive cover isn’t just peace of mind, it’s smart protection for your property and future income.
Why do you think some landlords consider it?
“Usually because they haven’t had a big claim yet. It gives a false sense of security. You think, ‘I’ve never had to claim – why am I still paying?’ But the day you need it, you’ll be glad you did.”
Graeme compares it to health insurance – you don’t buy it hoping to use it, but you definitely want it when things go wrong.
What kinds of events make insurance non-negotiable?
“Fires are the big ones for me. I’ve had a few over the years, and they’re expensive – repairs, temporary accommodation, loss of rent. Without insurance, I would’ve taken a massive hit.”
He also points out that natural disasters like floods and earthquakes are unpredictable and can affect multiple properties at once – something no reserve fund can reliably cover.
From initio: Our policies cover comprehensive replacement for accidental fire, storm, flood, and more. And with loss of rent included when a claim makes the home uninhabitable, your income is protected too.
But it’s more than that, insurance is what steps in when the stakes are highest. A fire or natural disaster doesn’t just damage property – it disrupts lives. You might need to relocate tenants, pause income, and navigate months of rebuilds or repairs. That’s not something most landlords can self-fund, especially if multiple properties are impacted at once.
That’s where we come in. The purpose of insurance is to absorb those risks on your behalf. You pay a premium so that when the worst happens, you’re not left scrambling. You’re backed by a provider that’s prepared to step in with cover, support, and real financial backing when you need it most.
And because disasters don’t give you notice, our policies are designed to respond fast. Claims can be lodged online in minutes, and we’ve built a digital-first platform to speed things up – so you’re not stuck waiting around when time matters most.
What would you say to investors who feel overinsured?
“You’re not. You’re covered. That’s a good thing.”
Graeme says insurance isn’t about trying to beat the system – it’s about protecting what you’ve built. “I’d rather have cover and never use it than need it and not have it.”
From initio: With the right cover in place, you’re not throwing money away – you’re protecting your investments from the risks you can’t predict or prevent.
Coming up next in the Smart Moves Series:
Looking ahead: what does the future of insurance for landlords really look like?
Want the quick version?
We’ve pulled together the key takeaways from this series into our Landlord Insurance Fundamentals Guide—including a bite-sized version of our interview with Graeme Fowler. It’s a great place to start if you’re after a practical overview of insurance essentials for NZ landlords. Read it here
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