How to think about risk (and why location isn’t everything):
Smart moves, part IV
In the fourth part of our chat with Graeme Fowler, we dig into risk – where it comes from, how to think about it as a property investor, and why you shouldn’t assume location alone will keep you safe.
Do natural disaster risks influence where you buy property?
“Not really. Any location can be hit. Look at Cyclone Gabrielle – it hit parts of the country hard, but none of my properties were affected. That wasn’t strategy – that was just luck.”
Graeme believes that chasing the “perfectly safe” location is unrealistic. Disasters don’t follow predictable maps, and if you’re insured properly, where your property is becomes less important than how it’s protected.
From initio: our quick quote tool, includes built-in risk ratings for flood and earthquake zones, so you can see your property’s natural hazard profile upfront.
Do you consider climate risk in your buying strategy?
“I’m aware of it, but I don’t let it stop me. What matters more is making sure you’re insured properly – because whether it’s a storm, fire, or flood, anything can happen.”
Graeme says the best protection isn’t where you buy – it’s what you’re covered for.
From initio: Our landlord policies include full replacement cover for sudden and accidental damage- including weather events like storms and floods. But having the right type of cover is only part of the picture. It’s just as important to make sure your sum insured is accurate. This is the maximum amount your property will be rebuilt for after a total loss, so it needs to reflect today’s building costs – not what it might’ve cost a few years ago. You can check and update your sum insured anytime through your online account. Not sure how to calculate your sum-insured? The Cordell Sum insured calculator is a great place to start.
So, how should landlords think about risk?
“You can’t avoid it entirely – so accept that some risk is part of the game. Just make sure it’s managed. For me, that means keeping insurance current and making sure I’ve got enough cover.”
Graeme suggests thinking about risk as part of the cost of doing business, not something to fear, but something to plan for.
From initio: Risk management is at the core of what insurance does – we carry the risk for you. That’s what you pay us for when you buy a policy: to take on the financial risk of the unexpected, so you don’t have to.
Location plays a big role in how risk is assessed. Some properties sit in higher-risk zones – floodplains, liquefaction-prone areas, or coastal regions exposed to storms. But risk isn’t just about the region. Two houses on the same street can have different risk profiles based on their floor level, drainage, slope, or construction.
That’s why we do the heavy lifting in the background. Our system automatically pulls up-to-date risk data from government hazard mapping, scientific assessments, and advisory updates. When these maps change, due to new modelling or recent weather events, we update our software accordingly.
Our quick quote tool includes these insights from the start, showing you a property’s natural hazard profile upfront. So you’re not just getting insurance – you’re getting a risk management tool that helps you make smarter decisions.
When you quote or renew your policy, we make it easy to check your current risk profile, coverage level, and any potential gaps. If something doesn’t look right, we’ll let you know.
What’s your advice to landlords who worry about “what if” scenarios?
“That’s exactly why you have insurance. Fires happen. Storms happen. And sometimes you get lucky – but sometimes you don’t. The point is being prepared either way.”
Coming up next in the Smart Moves Series:
Is self-insurance ever a smart move for landlords? (Spoiler: Graeme says no.)
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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