By Gordon and Carol,
Feb 11, 2020
Easy company to deal with
In fact, this is the only place in New Zealand where you can insure your block of units online. Our multi-unit rental policy provides cover for the important events such as fire, earthquake, flood. The policy also provides protection against landlord nasties including damage by your tenants, loss of rent, meth damage, landlords contents, and landlords liability.
Initio is the insurance provider to members of the NZPIF. We created our multi-unit insurance policy with professional property investors in mind.
We use technology to make insuring blocks of units easier than any other insurer in New Zealand, and because of this we pass premium savings onto you. We are all about the digital experience so that means you receive an instant certificate of insurance and the freedom to change your multi-unit policy anytime through your personalised dash. Most importantly, you can make and view claims directly from your dash.
Cover up to Sum Insured
Excess is your choice of $400 / $650 / $1,150 / $2,000
Covered up to 52 weeks
Cover from $20,000 to $80,000 per unit
Eviction for non payment - 6 weeks
Vacating without notice - 6 weeks
Prevention of access - 6 weeks
Items under 5 years of age
covered for replacement
Cover from $20,000 to $60,000 for all units in total
Fire & Explosion covered
up to the replacement value
Covered up to $25,000 per unit
Included up to $25,000
Covered up to $30,000 per unit
Cover up to Sum Insured
Swimming Pools, Spa Pools and Tennis Courts
Included up to $45,000
Limit of cover $2,000,000
Your chosen excess
It’s a collection of residential units under the same roof. These are sometimes referred to as a block of flats or a block of units.
Work out whether your property is a multi unit or not.
Its an insurance policy that provides protection for multiple rental property units in one go. Multi unit insurance provides cover for the entire block of units, based on your selected insured value, and also provides landlord insurance benefits including loss of rents, landlord contents, deliberate damage by tenant, meth and more.
Learn more about insuring multi unit property.
Yes, but only if they share a wall, a roof, or some other structure like a pergola or deck. For example the following are multi units:
a. two separate dwellings that are connected by a shared a carport
b. a two story house with one tenancy upstairs and another downstairs.
c. a block of 6 flats (3 on the ground floor, 3 on the first floor).
All of these can be insured as a multi unit rental property.
If the houses are completely separate from one another then they will need to be insured individually as rental properties. Initio specialises in landlord insurance / rental property insurance. You can get a quote and insure rental properties online with initio. More information about initio rental property insurance
Loss of rent insurance is loss of income protection. It pays the property owner the income they would normally get if the tenant was still in the property. Loss of rent is a key element of landlords insurance, and most banks make sure the property owner has this in insurance in place when they are providing a mortgage. There are two types of loss of rent, 1. loss of rent resulting from the property being damaged (eg fire) and uninhabitable. 2. loss of rent from a tenant leaving without notice, or being evicted. The initio policy provides automatic cover both with different payment limits. Learn more about loss of rents.
Yes but only if your individual unit (or units) are not immediately next to more than one other unit that you don’t own. For example if you own the middle unit in a block of 6 units we won’t be able to provide cover as your unit neighbours 2 other units. We, and most insurers, take this position because if there is a major claim to the entire property there are often major arguments and delays caused due to multiple insurers trying to indemnify their customers.
Its important to insure the block for what it would cost to replace it with a new one. Plus you will also need to include extra things like fences, driveways, and swimming pools. And you will want to add in a provision for the inflation in the cost of materials and the cost to demolish and clean up the site.
It is recommended that you use an online tool such as SumSure or obtain a valuation from a quantity surveyor such as CCC. See here for more information about a rebuild valuation.
Online replacement value calculators may not be that accurate for multi units, so its important that you double check the numbers to ensure you are comfortable with the replacement value should there be a major loss.
The Earthquake Commission has defined multi-unit buildings several ways. These are often a singular building with several dwellings within it (such as an apartment block), a mixed-usage building (such as a residential flat above a commercial warehouse), or two or more dwellings that are connected by party walls or a carport.
Learn more about how the EQC treats multi unit properties.
As a landlord, you have obligations to ensure you’re maintaining your property to a suitable standard. This includes ensuring that it’s fire safe for renters. Learn more about fire protection at your rental property by Fire and Emergency NZ