Hosting short-term guests introduces unique risks. Most insurance companies are cautious about rented holiday homes so before letting out your home or listing your property on platforms like Airbnb or Bachcare, it’s important that you confirm your policy covers holiday bookings.
Effects on insurance costs
If you host paying guests, and you tell your insurer, they will likely adjust your coverage. Be sure to inform your insurer about your hosting activities and understand the implications for your policy. Many insurers, including initio, may increase premiums or excesses due to the additional guest-related risk. Some insurers may exclude coverage for guests entirely, leaving you at risk of being uninsured. It’s best to review your policy or contact your insurer if you’re unsure. Make sure your insurer is aware that you rent out your holiday home.
What qualifies as a holiday home, for insurance purposes?
To qualify as a holiday home, the owner must;
Use the property themselves as a holiday home, and;
Have the right to occupy the property at will, and;
Store personal belongings at the home.
A holiday home can be used by:
The owner, at any time.
Friends and family.
Tenants on a periodic basis, including short-term paying guests (stays with durations of less than 90 days).
These criteria ensure the property remains under your control and qualifies as a holiday home with your insurance provider and meets the requirements for cover provided by the Natural Hazards Commission (NHC, previously EQC).
How property management can affect your insurance
Using a property management company under a full management contract can impact your insurance. If the property manager has full control, you may lose the right to occupy the property, which can disqualify it from being considered a holiday home, and makes it ineligible for Natural Hazards Commission (NHC) coverage. You must check your agreement with your property management provider as it may mean that you have assigned control cover to the manager and you no longer have the ability to occupy it when you wish.
An insurer cannot provide domestic house insurance cover for a holiday home that does not meet the conditions of cover for the NHC.
Understanding NHC cover: The Natural Hazards Commission (NHC) provides special insurance protection for the home against natural disasters like earthquakes and floods, and unlike your house insurance policy, it also extends to cover land damage. To qualify, your property must meet specific criteria, including being under your control as a holiday home. For detailed information, refer to the NHC guidelines.
What if your property does not qualify as a holiday home under the NHC legislation?
If your home does not meet the NHC definition of a holiday home, to obtain cover you will likely need a commercial property insurance provider to structure insurance that covers the building, loss of income and liability risk.
Does landlord insurance cover short-term rentals like Airbnb?
No, our landlord insurance is designed for standard long-term residential tenancies only. It doesn’t cover properties used for short-term rental activity such as Airbnb or Bookabach.
If you rent out your own home (where you live) occasionally on Airbnb, you may be eligible for cover under our Own Home, Sometimes Rentedpolicy. Similarly, if you have a family bach or holiday home that you occasionally let to paying guests, it may be suitable for ourHoliday Home insurance – sometimes rented– just make sure to select the option for short-stay rentals when quoting.
Short-term rental properties that operate like a business typically require commercial insurance, which isn’t available through initio. Learn more about the things we don’t coverat initio.
Doesn’t Airbnb’s ‘Host Guarantee’ cover me?
If you manage your property using Airbnb, you’re likely familiar with their Host Guarantee.
It’s important to understand that this guarantee isn’t a substitute for proper insurance. The Host Guarantee comes with limitations and might not cover everything you anticipate. It’s not equivalent to regular insurance and some hosts have discovered it doesn’t provide comparable protection. To ensure your property is fully covered against any damages or issues, having your own insurance policy is essential.
Airbnb’s Host Guarantee is not a traditional insurance policy but a conditional promise. It’s not regulated like insurance. Key requirements include:
Report damage and file a claim within 14 days.
Provide proof of ownership and, in some cases, a certified police report.
House Guarantee conditions can include:
Only covers damage during the booking period.
Coverage is limited to listed areas in your profile.
Exclusions include damage from excessive utility use, animals, or pets.
Rent loss cover only applies to confirmed bookings cancelled due to damage.
Given these limitations, Airbnb themselves recommends having a specialist insurance policy in addition to the Host Guarantee.
Everything’s in order, how do I get the right cover?
If you manage your holiday home yourself and meet the necessary NHC criteria, initio offers specialised cover for your holiday home that is also used for short-term rentals. As the first in New Zealand to provide a house insurance policy specifically designed for holiday homes, Initio offers a hybrid house, contents, and guest insurance policy tailored for short-term rentals, without the strict conditions of a Host Guarantee.
Initio’s holiday home (with the additional short stay option) policy covers:
The home itself for damage from things like flood, fire and storm (whether rented or not)
Accidental damage to the home by guests.
Intentional damage by guests, up to $25,000 (e.g., if guests decide to damage walls deliberately) .
Loss of rent for confirmed bookings cancelled due to the home becoming uninhabitable following insured damage, and also for loss of rent from unconfirmed bookings based on seasonal, area or your previous year’s use data)
Meth contamination from manufacturing, ie. contamination damage caused by an accidental incident in connection with the manufacture, distribution or storage (but only where the storage is in connection with supply or distribution) of methamphetamine at the home.
Your legal liability to your guests for accidental damage and bodily injury.
These are the sort of protections you need when renting your home out to short-term guests.
Key takeaways
Check your insurance: Ensure your policy covers holiday rentals before using platforms like Airbnb.
Higher costs: Be prepared for higher premiums or excesses if your insurance covers guests.
Host guarantee limits: Airbnb’s Host Guarantee has strict rules and limited coverage.
Property Management impact: A property manager’s control might disqualify your home from holiday home insurance, check your agreement with the property manager and that you still comply with the NHC definition of a holiday home.
Holiday Home rules: You must retain occupancy rights and keep belongings there to maintain holiday home status.
Get the right insurance: Choose insurance designed for short-term rentals for better protection.
Comprehensive coverage: Seek policies that cover guest damage, lost rent, meth contamination, and liability.
By managing your property with these factors in mind, you can better protect your holiday home and maintain your insurance coverage.
If you have a part of your property that you sometimes rent out short-term whilst you are not using it yourself, renting out part of your home means you need the right insurance to protect your entire property, rental income, and liability to any guests.
What counts as short-term renting, for insurance?
Short-term renting is lets of up to 90 days per guest stay. This could be via platforms like Airbnb or other short-term rental arrangements. When the space isn’t being rented, you or your friends and family use it. If a guest books in for a stay longer than 90 days, it is classed as long term and the property should then be insured under our Landlord Insurance product.
Does this match your situation?
The area (unit/bedroom) is used for short-term lets between your own use.
This could be an occasional Airbnb, but;
You must use the area yourself (or friends and family do) between paying guests
What insurance do you need?
For this setup, you’ll only need one insurance policy that covers your home and the short-term rental use. This is called an own home, partially rented policy, and it provides cover for both your personal use and rental activities.
Your home – Protection for your home including the area sometimes let.
Short-term rental risks – Cover for things like accidental damage caused by guests, loss of rents and your liability to guests
Loss of rent – If a guest cancels or you’re unable to rent the space due to an insured event, you’ll be covered for lost income.
Get covered today
With initio, you can get a quick quote and buy insurance online in minutes, making it easy to ensure your property is fully protected. Getting a quote and buying insurance online with us is easy, but our cover is anything but basic. We offer comprehensive protection to ensure you’re fully covered.
Standard home insurance might not cover short-term renting, leaving you exposed to potential financial risks. A policy designed for partial rental use ensures you’re protected, whether you’re welcoming guests or enjoying the space yourself.
Need help? If you’re unsure about what policies are right for your situation, contact us to make sure you’re fully protected.
Get covered today with initio – Quick quotes, easy online cover.
Not quite what you’re looking for? Maybe some of these other scenarios suit you better:
If you own a property with two dwellings and rent them both out long-term (90 days or more per tenant), it’s important to have the right insurance to protect your investment. Whether the dwellings are separate or physically connected will determine the type of insurance you need.
What type of rental arrangement is this?
Two homes, same site
Both rented on long-term residential leases
What insurance do you need?
The right insurance depends on whether the dwellings are physically connected or separate:
If the dwellings are NOT physically connected (e.g., separate buildings on the same section):
If the dwellings ARE physically connected (e.g., one upstairs and one downstairs, or connected by a wall, roof, or garage):
You can use our Multi-Unit Rental policy, which provides coverage for both units under a single policy. you’ll need to state the number of self-contained dwellings at the address. This helps ensure you get the right level of cover for your property setup.
On the full quote screen, click ‘back’ to edit the second dwelling’s details if needed.
If both properties are the same size or the details are already correct, no changes needed.
Once you go back, edit the property details, then click ‘continue’
This will adjust the quote to reflect the correct figures for the property.
Finish the quoting process from here per the usual process – Easy!
You can get a quick quote and buy insurance online in just a few minutes with initio. Make sure you choose the right policy based on whether your dwellings are separate or connected. Getting a quote and buying insurance online with us is easy, but our cover is anything but basic. We offer comprehensive protection to ensure you’re fully covered.
Not quite what you’re looking for? Maybe some of these other scenarios suit you better:
If you plan on renting out a room or your house to short term tenants, there are some things you need to consider. One of the most important is how it will affect your insurance cover.
Non-Disclosure
Failing to tell your insurance company about the change in occupancy could result in non-disclosure; which in turn could result in non-payment of a claim. Make sure you let your insurer know if you intend to rent a room or home to short term tenants or guests. A house, rental or landlord insurance policy designed for long term tenants is unlikely to cover you.
Getting the right cover
Just because you’ve got insurance, and you have disclosed the occupancy, it doesn’t mean that you are covered. You will need to specifically ask your insurer about policy coverage whilst short term tenants / guests are staying in your home. Some of the key questions to ask are:
Any cover for damage/theft by short term holiday rental guests?
Is there a cover for lost rental income following a damage to the property?
Will there be cover if guests contaminate the home with methamphetamine?
Simply continuing to insure the home isn’t always enough. You want to make sure that you have the right insurance cover for the increased risk exposure. If your existing insurer cannot provide this cover check out initio.co.nz who specialises in rental and holiday home insurance.
If your home or unit is used solely for short term tenants it is unlikely to meet the EQC (Earthquake Commission) definition of a home. This is because it is viewed as more like a motel, and will require a commercial insurance policy.
Don’t rely on Airbnb Host Guarantee
The Host Guarantee is not an insurance policy, and should not be relied on as such. The extensive terms and conditions including time limitations can make receiving a payment from Airbnb difficult. There are no guarantees of payment with this guarantee. The security deposit paid by guests is also controlled by Airbnb so unless Airbnb and the guest agree, you cannot retain any security deposits to cover your damage.
How to stay safe
If you do decide to list your home (or room) online with sites such as Airbnb or Bookabach there are some simple ways to stay safe.
Screen guests by checking online reviews and looking at online profiles such as Facebook and LinkedIn. Don’t be afraid to ask for references, and remember you can decline a booking if you are not comfortable.
Don’t go off the platform, and complete the transaction offline, this will void any ‘guarantees’ offered by Airbnb. Always be wary of guests wanting to pay with prezzy cards or cash.
Question guests intentions if they are wanting to stay for extended periods at short notice; especially if it is off season and your home is in a remote location.
Always refund cancellations to the credit card used to make the payment to avoid assisting money launderers.
Don’t leave valuable or sentimental items lying around for guests to use or damage.
Consider installing a meth alarm.
Keep your keys safe by not always leaving them in the same place.
Build relationships with your neighbours so they can keep an eye on the home and report any suspicious behaviour.
If you have two dwellings on your property and one is used exclusively for short-term stays – such as an Airbnb or similar short-term rental arrangement – it’s important to understand your insurance options.
What insurance do you need?
Homes used this way are no longer classified as residential, as they are considered to function more like motels. Because of this you will require a commercial product to insure the home/unit.
What are your options?
Unfortunately, initio does not currently offer an insurance product that fits this type of use. Please contact a provider who offers commercial solutions, such as a broker.
Not quite what you’re looking for? Maybe some of these other scenarios suit you better:
There’s a lot of talk about the ‘pitfalls‘ of renting your home out on airbnb or bookabach. Local councils are cracking down on short-term rental property owners, with the result being that your profitability suffers. Like any business, increases in costs can be managed and in many cases have to be passed on. There are also anecdotal claims that the risks associated with rental your home to guests short term are uninsurable. Some risks, and expenses, can be managed by choosing the right insurer and the right insurance policy.
What’s the problem with insurance?
Most insurers will tell you that your domestic house and contents policy isn’t suitable for home sharing situations. Or that inviting strangers into your home for money could invalidate your insurance. Others might tell you that you are insured, but come claim time, you’ll discover there was no cover. For example your standard home contents policy, won’t cover you for items stolen by individuals allowed in the home. And your standard home policy, won’t cover you for intentional damage caused by guests. That means that you’re not covered if anyone who has a key (or their guest) steals, or damages your stuff – including your home.
A landlord insurance policy will usually provide cover for the above, but generally these come with a bunch of landlord obligations. Landlord obligations include things like reference checks, credit checks and written inspections between tenancies. Without upholding your obligations; which are generally impossible for holiday rentals, the insurer could deny your claim.
What’s the solution?
To circumnavigate these issues, most short term holiday accommodation providers recommend a commercial insurance policy. But these can cost thousands of dollars, and are not always necessary. What you probably don’t realise is that there is an insurance policy designed specifically forholiday homes that are rented out. The initio insurance policy for landlord and holiday home owners.
In addition to providing cover for your holiday home and its contents, the policy extends to cover intentional damage and theft by paying guests. Unlike other insurers, when the home is occupied by guests as a holiday home, the landlord obligations do not apply. Loss of rents is also covered, with the policy allowing for the lost income to be calculated using a combination of factors. These include confirmed future bookings, and rent received in the 12 months preceding the loss or contamination damage. As for meth contamination, it is covered in connection with the manufacture or distribution of methamphetamine at the home.
In the past, there has been confusion on whether your holiday rental will be covered for Earthquakes and Natural Disaster. To clarify, provided that it is your intention to live in, or holiday, at the home, then you will be covered under the EQC Act (of which you pay an EQC levy as part of your insurance). If the home is purely a commercial enterprise that is not used personally by you or your family, you will need a commercial insurance policy (which will cost a lot more).
What about liability?
Health and safety legislation applies to short-term rental properties in the same way that it applies to other landlords. You have a duty to make sure your property is safe and healthy. This includes installing smoke alarms and providing protective gear for any equipment that might be used by guests, such as lifejackets for kayaks. It also means that you, as a landlord, could be deemed liable for an injury or accident suffered by a guest suffers at the property.
Some home sharing services will provide property owners with a limited amount of liability cover. However if you are renting your property you should make sure you have adequate public liability insurance in place. The initio policy provides $2 million of cover including bodily injury and defence costs.
What about the provided insurance / guarantee?
The Airbnb Host Guarantee is not an insurance policy. If you do a quick search in google, you will soon see that claiming is not very easy or straightforward.
BookabachOwner Protection provides an actual backup insurance policy, which is locally supported. The policy covers owner’s liability and property damage protection and is underwritten by NZI (IAG New Zealand Ltd). However, for cover to apply, the guest booking must be booked and paid online through Bookabach. A current house insurance policy also needs to be in place for the Bookabach backup policy to apply.
It’s always best to have a proper holiday home insurance policy in place in the first instance. Find out more about the initio insurance policy for landlords and holiday home owners, including an instant quote,
Renting out your home in New Zealand can be a great way to generate extra income, but it comes with responsibilities and risks. Whether you’re considering becoming a landlord for the first time or looking to optimise your rental process, this guide covers some of the key aspects you need to know.
1. Consult the experts
Refer to Tenancy Services for the latest landlord specific advice such as healthy homes and legal requirements
Consider the benefits of engaging a professional property manager.
Companies such as myRent provide valuable resources in terms of finding tenants and managing your properties
2. Understanding your responsibilities as a Landlord
As a landlord in New Zealand, you have legal obligations under the Residential Tenancies Act such as:
Ensuring the property is healthy and safe (meeting Healthy Homes Standards)
Providing and maintaining the property in a reasonable condition
Lodging the bond with Tenancy Services
Conducting rent reviews and providing proper notice for increases
Keeping proper records of agreements, payments, and inspections
3. Deciding on long-term vs. short-term rentals
You need to determine whether to rent your property on a long-term basis or as a short-term holiday rental (e.g., through Airbnb).
Long-term rentals provide steady income and more security but require ongoing property management.
Short-term rentals can yield higher returns in peak seasons but involve more effort, cleaning, and compliance with local council rules. They also require commercial insurance which can be more costly.
4. Setting the right rent price
Research similar properties in your area to set a competitive rental price. Consider:
Location and amenities
Property size and condition
Market demand
Seasonal fluctuations
Websites like Trade Me Property and Tenancy Services can help you gauge market rents in your area.
5. Finding and screening tenants
To attract good tenants:
Try advertising on Trade Me Property, Facebook Marketplace, and local community boards or use a Property Manager.
Conduct thorough tenant checks, including credit history, previous landlord references, and employment verification.
Landlord insurance is essential to protect your property from risks like tenant damage, loss of rent, and liability claims. Standard home insurance will not cover rental-related risks, so consider a comprehensive landlord insurance policy from specialist providers like Initio. Take note of your policy conditions such as specific Landlord obligations around property inspections and tenant checking.
6. Property maintenance and inspections
Regular maintenance keeps your rental property in good condition and prevents costly repairs. You should:
Have a system in place or with a provider such as myRent which allows you to track rent payments
7. Managing tenancy agreements and ending a tenancy
Ensure tenants sign a legally binding Residential Tenancy Agreement outlining rent, bond, and house rules. When ending a tenancy, follow proper legal processes, including giving the correct notice periods and handling bond refunds properly.
8. Understanding tax implications
Rental income is taxable in New Zealand. You may also be able to claim expenses such as:
Property management fees
Mortgage interest (if applicable)
Repairs and maintenance
Insurance and rates
Check with an accountant or Inland Revenue (IRD)for guidance on tax obligations.
Final thoughts
Renting out your home can be a rewarding financial decision, but it requires careful planning and management. By understanding your responsibilities, pricing your rental appropriately, and securing theright insurance, you can ensure a smooth and profitable experience as a landlord.
If you’re considering renting your property, take the time to research and seek professional advice where needed to avoid common pitfalls.
We can insure properties that are rented out to short term guests like Airbnb, but there are some requirements.
You need to purchase the correct policy, depending upon your specific situation. We have an option for the residence where you live occasionally let on Airbnb and also an option for your family holiday home that is also occasionally let on Airbnb.
We can’t cover a house or unit that’s used strictly for short term guests, and not by yourself or family. This is because it’s considered more like a commercial operation similar to a motel, and a commercial insurance cover is more suited.
Alternatively, if you are handing your property over to a holiday home management company under a full management contract, where they effectively have control over your property, then for the purposes of insurance it is not considered your holiday home and we will not be able to provide cover. This is because with a full management contract you lose your entitlement to occupy the property whenever you wish, which means that there is no cover provided by the Natural Hazards Commission (NHC). We cannot provide cover if the NHC is not providing cover.
Examples of what we can cover
Secondary house you use occasionally for yourself and your family (e.g. beach house rented on Airbnb when you’re not there).
Second living unit at your house rented to short term guests, but used by yourself and family when it isn’t rented.
If you have a holiday home that you sometimes rent to guests, to qualify as a holiday home, the owner must;
demonstrate use of the property, and;
Have the right to occupy the property at will, and;
Store personal belongings at the home.
Examples of what we can’t cover
Holiday home you rent on Airbnb or similar guest site that you don’t use yourself.
Extra living unit at your main house that you rent only to short terms guests, and don’t use yourself.
House or Lodge with a Bed & Breakfast function for short term guests.
Property managed by a commercial organisation that’s set up to rent the property to guests on your behalf.
Properties where your tenant sub-lets to others, other than a long term flatmate arrangement
If you’re still unsure about your property, you can contact us.
If you have two dwellings/units on your property and the second one is permanently occupied by a family member or friend who lives separately to you, it’s important to have the right insurance in place to cover both homes properly.
What counts as permanent family use?
If your second dwelling—such as a granny flat, unit, or cottage—is lived in independently by a family member or a friend, then it’s considered a separate household. Even though they are part of your extended family or close circle, the fact that they live there permanently and independently means the second home/unit needs to be insured separately as another home/unit.
What insurance do you need?
For this setup, you’ll need two separate home (Own Home) insurance policies, one for each dwelling. This ensures that:
Each home/unit is covered.
Begin by getting a home insurance policy for your first property and then proceed to obtain another quote for the second home/unit.
To ensure both dwellings are protected with the right level of insurance you’ll need to set up one policy first, then start a new quote for the other. The good news? Getting covered online only takes a few minutes, so setting up two policies is quick and easy. If you already have house insurance with us and need to add a second policy, login to your dashboard and click on the + add house policy to begin the process. While getting a quote and buying insurance online with us might be easy, our cover is anything but basic. We offer comprehensive protection to ensure you’re fully covered.
How to add a policy for a second dwelling on the same title:
Login to your dashboard and click on the ‘house insurance +’ button
Search for your home address & ‘see full quote’
On the full quote screen, click ‘back’ to edit the second dwelling’s details if needed.
.
If both properties are the same size or the details are already correct, no changes are needed.
Once you go back, edit the property details, then click ‘continue’
This will adjust the quote to reflect the correct figures for the property.
Finish the quoting process from here per the usual process – Easy!
Not quite what you’re looking for? Maybe some of these other scenarios suit you better:
Landlord insurance built for landlords. We make it easy with all-in-one rental property and landlord insurance.
Initio provides an all-in-one landlord insurance policy for the rental property itself and the extra risks you take on as a landlord, such as a tenant deliberately damaging your property. The only real value you see from your landlord insurance policy is at claim time, and that’s why we make it easy.
Have a rental property with multiple units? Check out our multi-unit rental cover.
IMPORTANT This is a summary of the landlord insurance policy only. Please refer to the policy wording for full details of cover
Here are some of the many landlord insurance claims we’ve paid:
A tenants dog was left locked in the property. The doors, walls and carpets didn’t win the dog fight, but Initio came to the rescue.
Leaking tap connection in the bathroom wrecked the vanity and particle board floor. The tenant worked this out when his foot went through it. Gradual damage claim.
Fire in the laundry caused by an overloaded electrical multiplug. Fire service attended. Repair costs and loss of rents covered while the property couldn’t be tenanted.
Meth lab in attached garage. Police raided causing more damage. Initio picked up the tab.
House foundations severely damaged by Canterbury Earthquake. EQC and Initio put things back in order.
And, here are some of the landlord losses we don’t pay:
Tenant decides not to pay the rent. We consider this a payment risk best managed by you or your professional property manager.
Shower tray leaks over time and the tenant doesn’t let anyone know that the floor is squishy. Gradual damage has to be from a water pipe.
Wooden window sill rots and needs to be replaced. Wear and tear is not covered. This is a maintenance cost not an insurable risk.
Tenants move out and leave the house untidy, including a large amount of rubbish to be disposed off. Unfortunately there is no damage so no cover, the Initio policy is designed to cover damage.
Upon the property becoming vacant the odd mark is found on the carpet, and a few marks on the walls where the tenant has hung pictures. Unless you can point to a sudden event that caused damage we consider this to be wear and tear, and the policy does not provide cover.
This is not an exhaustive list and the list does not imply that all losses the types described are covered or not covered. Landlord insurance claims are like butterflies, each very unique with its own set of facts that we need to apply to the policy.
Initio provides landlord insurance to NZ’s top property investors. Buy landlord insurance online with Initio. Quick quote, quick claims, initio
Here’s what you need to know to insure your main home if it’s also rented to short-term guests.
What can be covered? A shared primary residence
If the house is your primary residence, we can cover your own home that’s also rented with our Own Home Rented product. However, it’s required that you share the use of the property with guests.
The two most common scenarios for renting your own home are:
You rent out part of your home to short stay guests while you still live in the property (e.g. a room or downstairs).
You rent out you whole house to short stay guests when you’re not living there (e.g. you go overseas or stay in your holiday home).
If your house is not your primary residence, it may be able to be insured as a Holiday Home also Rented. Learn more about insuring holiday home rentals here.
Essentially, our guest rental cover only applies to properties that have shared use (at-least occasionally) by the owner. We’ll explain why next.
What can’t be covered? A dedicated short-stay accommodation
We can’t insure a dedicated short-stay living unit that’s only used for guest accommodation. When a unit is used solely for guests it becomes a commercial property – similar to a motel.
The EQC’s $150,000 of natural disaster cover will not apply to a ‘dedicated short stay’ as they are considered commercial risks. Our domestic house insurance policy assumes part of the natural disaster risk is covered by the EQC. A dedicated short stay rental therefore needs to be covered under a commercial material damage policy, where the insurer covers 100% of the natural disaster risk.
Please note the definition of a dedicated short stay property is any living unit that is set up purely as a commercial enterprise and the owners don’t use it or intend to use it for their own purposes (or for somebody else to use it as their home).
Is a secondary unit at my house covered under my house insurance policy?
Yes, as long as it’s not a dedicated short stay unit – and it’s used by yourself (at least occasionally) as part of your own home.
It’s common for people to have an additional self contained living units at their houses. It’s common to have a separate unit at the back of the house, or a downstairs living unit with its own access. Often these are rented to short term guests (via Airbnb or BookaBach), or longer term boarders for additional income.
If you don’t use this unit yourself (at least occasionally) then we can’t insure it together with the main house.
If the unit is used purely for short terms guests a commercial policy is required. If the unit is simply rented to tenants you’ll need a separate landlord insurance policy for it.
Short Stay Airbnb Unit Example
If the additional unit is used by both the owner and short-term guests we can provide cover under our own home rented.
If the additional unit’s use is shared by the owner (themselves or family) as well as short-stay guests, it can be covered under our Own Home Rented product.
When the living unit is solely rented to guests and not utilised by the owner, it is deemed a dedicated short stay. EQC cover does not apply, and we can’t provide cover.
An example of this is where the unit is used for children when they return home from university and other times the unit is rented to short stay guests. This can be insured under a Own Home Rented policy on the main house.
Renters or Boarders Unit Example
If the rental unit (for example downstairs unit) is only used for a longer term tenants (i.e. more than 90 days) or boarders and not utilised by the owner themselves – this can’t be insured under a single Own Home Rented policy. In this instance, a separate Landlord Insurance policy is required to cover the self-contained rental unit.
If you need help working out which insurance or combination of insurance is best for you, see our home & income insurance page.
What is Covered?
Our Own Home Rented product takes all of the standard owner occupied policy features, and includes extra cover for the risks of renting. You can also choose to add personal household contents cover. You can get the peace of mind that your property and contents itself is covered, while the risks associated with renting your house to guests is insured.
Generally a standard house insurance policy won’t cover guest risks, so it’s important for owners to get the right cover. The extras included in the own home rented cover includes:
What happens if my house is too damaged and can’t be lived in?
If your house is too damaged to be lived in (like a fire or flood) there is cover (up to $20,000) to go towards moving into a temporary house while repairs are completed. If you also get regular rental income from guests there is cover for your lost rents you would otherwise have got if your house wasn’t damaged.
We provide $20,000 of loss of rents cover for free, with options to increase to $40,000 or $80,000. Both loss of rents and alternative accommodation have a payout period of 12 months.
The Loss of Rent calculation will take account of future actual guest bookings that are cancelled, and expected bookings based on the same period in the previous year. If you are new to the home and income game then we will use short-stay occupancy rates in that particular region to estimate the loss. If you have a boarder or tenant with a fixed weekly rent then that amount will be used.
The policy aims to put the owner in the same financial position they were in before the loss, by paying for the repair costs and lost rental income – all while paying for the owners temporary accommodation costs.
Your rental becomes uninhabitable due to sudden, accidental damage covered by the policy (like fire or flooding) – We’ll pay up to 12 months’ rent, capped at your selected loss of rent limit.
Your tenant is evicted for non-payment, or vacates the property without notice – We’ll pay loss of rents following the eviction, or until you find a new tenant for up to 6 weeks (excludes overdue rents prior to the eviction).
Loss of rent cover helps protect your rental income. Here’s a breakdown of how it works under initio’s landlord insurance:
You’re covered for:
Uninhabitable home: If the property can’t be lived in due to insured damage (e.g. fire, flood, meth contamination), we cover up to 12 months’ rent, up to the limit shown on your policy.
Loss of rent following eviction of the tenant for non-payment of rent during the period of cover. We will pay for any event up to 6 weeks’ rent, less any amount recoverable by you from rent paid in advance
Abandonment: Loss of rent following the tenant vacating the home without giving the required notice during the period of cover. We will pay for any event up to 6 weeks’ rent, less any amount recoverable by you from rent paid in advance.
Access or utility issues: If your tenant can legally stop paying rent due to loss of access or failure of public utilities, you’re covered for up to 6 weeks’ rent.
Meth contamination: If your property is contaminated during a tenancy and you’re covered under the meth benefit, we’ll also cover up to 12 months’ rent, based on estimated repair time.
Tenant damage: If the home becomes uninhabitable due to intentional damage, theft or vandalism by a tenant, loss of rent may also apply under the standard 12-month cap.
If you’re still unsure, you can reach out to us directly – or even use an AI chat tool to quickly search your policy for specific details – just remember to always double-check the results!
If you rely on rent to cover mortgage payments or other bills, this protection is essential. It gives you breathing room while your property is repaired or re-tenanted.
Tip: To claim under most loss of rent scenarios, you’ll need to meet your landlord obligations, including regular inspections and proper tenant vetting.
What happens if my rental property becomes uninhabitable due to a natural disaster?
If your rental property becomes uninhabitable due to a natural disaster, initio’s landlord insurance covers loss of rent. This means if your property is damaged and tenants have to move out, you can claim for the rental income you would have otherwise received while repairs are being made. The standard cover includes $20,000 loss of rent, with options to increase this amount. Payments continue until repairs are completed and the property is rentable again, up to the cover limit or 12 months, whichever comes first.
Learn more about loss of rent cover through initio.
Do I have to include loss of rent and landlord contents cover with initio?
Yes. Loss of rent and landlord contents are standard features of initio’s landlord insurance, and they can’t be reduced or removed from the policy. Every policy includes at least $20,000 loss of rent cover (with the option to increase this limit) and $20,000 landlord contents cover. These benefits are included to protect you against some of the most common risks landlords face. Read the policy wordings here.
Contents cover with initio protects the things you own inside your property, but what’s included (and how it’s covered) depends on the type of policy you have.
Whether it’s your own home, a rental, or a holiday home, the level of cover and the items it applies to are different. This guide explains each type so you can choose the right cover and set an accuratecontents sum insured.
Own home contents cover (Owner Occupied)
If you live in the home yourself, contents cover protects your personal belongings from sudden and accidental loss or damage – whether they’re inside the home, in transit, or temporarily away from home.
Key features:
Repair or replacement – Most items are covered on a replacement basis, meaning we’ll repair or replace them with new (if it’s economical to do so). Items like clothing, books, and certain electronics are covered for their present value.
Coverage away from home – Your contents are covered when temporarily removed, whether they’re in storage with prior approval, travelling anywhere in New Zealand, or on short overseas trips to Australia and the South Pacific (up to $5,000 per trip).
Extra benefits – Includes cover for things like alternative accommodation, contents in transit, home office equipment, hidden gradual damage, keys and locks, frozen food, and stress payments after a total loss.
Limits for certain items – Jewellery, watches, cash, and similar items have set limits unless specifically listed on your policy. See our guide onwhat’s a specified item and when you should list it for more details.
Landlord contents cover
If your property is rented out, landlord contents cover is for the household items you own that stay at the property for tenants to use – for example, curtains, whiteware, or furniture. Cover is limited to the insured property address.
Key differences:
Cover type – Items less than 5 years old are replaced with new equivalents; older items are covered for their present value.
Location-specific – Contents are covered while they’re at the insured rental property or in transit to it (with prior approval if in storage).
Tenant-related risks – Includes extended protection under your landlord’s policy for intentional acts, theft, or vandalism by tenants (up to $25,000 combined for the home and contents, within which the contents sum insured applies). Learn more aboutlandlord’s protection and intentional damage cover.
Meth contamination – Covers loss to contents caused by contamination, within the overall limit for meth claims shown on your schedule. See ourmeth contamination cover guide for details.
Natural disaster – Covered on the same terms as the home, up to your contents sum insured.
Common landlord contents examples:
Curtains, blinds, and other window coverings
Carpets, rugs, and floor coverings not permanently fixed
Light fittings and lamps that aren’t part of the building structure
Whiteware like fridges, freezers, washing machines, dryers, and dishwashers
Freestanding stoves or microwaves
Furniture such as couches, beds, tables, and chairs (if the rental is furnished)
Heat pumps or portable heaters that aren’t fixed to the property
Outdoor furniture and BBQs provided for tenant use
Small appliances like kettles, toasters, and vacuum cleaners
Examples of what’s not covered: Owner’s personal belongings, vehicles, watercraft, pets, or items not kept at the insured address.
Holiday home contents cover
Holiday home contents cover works much like landlord contents cover – it applies to the items you keep at the holiday home for your own use or for guests. Cover is limited to the insured property address.
Key points:
Similar cover to landlord contents – Replacement for items under 5 years old, present value for older items and certain categories.
Guest or short-term rental protection – If your holiday home is rented out at times, tenant-related intentional acts or theft may also be covered under the same landlord’s protection and meth contamination benefits.
Seasonal occupancy rules – To maintain cover while the home is unoccupied, the home must be inspected regularly and basic security and maintenance steps followed. See ourholiday home insurance tips for keeping cover valid.
Natural disaster – Covered up to your contents sum insured, with the same EQC top-up process as for landlord policies.
Furniture for living areas, bedrooms, and dining rooms
TVs, stereos, and entertainment equipment
Outdoor furniture, umbrellas, and BBQs
Hobby and leisure gear typically kept for guest use (e.g. board games, puzzles, books)
Small appliances like coffee machines, blenders, and toasters
Décor items like lamps, cushions, wall art
Examples of what’s not covered: Owner’s personal belongings, high-value sporting equipment not kept for guest use, vehicles, watercraft, pets, or items not kept at the insured address.
Tip: When setting your contents sum insured, think about what’s actually at the property. For your own home, this means everything you own. For a rental or holiday home, it’s just the items you provide for tenants or guests.
If you’re unsure where to start, use theCoreLogic contents calculator to help estimate the replacement value of your belongings.
If you’re still unsure, you can reach out to us directly – or even use an AI chat tool to quickly search your policy for specific details – just remember to always double-check the results!
It’s worth noting that initio does not currently offer stand-alone contents insurance. To get contents cover, it must be added to an active insurance policy for the same property. If you only need to insure your contents, such as when you’re renting or not insuring the home itself, initio is not able to provide contents cover.
Floods are the biggest cause of natural damage to property in New Zealand. Much of our country has a high flood risk, meaning many properties lie in or near flood zones. This makes insurers cautious when it comes to flood-prone houses.
The 2017 Edgecumbe flood was one of New Zealand’s worst in recent history.
If you’re looking at buying a flood zone house, we recommend you follow these five steps.
1. Check the LIM Report
The easiest way to find out if your house is in a flood zone is to read over the LIM [Land Information Memorandum] report for the house.
If the house has been identified by the council as being at risk to any natural hazards (including floods) this will be included in the LIM report. The Certificate of Title will inform you if a Section 36, 73 or 74 of the Building Act has been issued.
In simple terms, this means when getting building consent on the house, a natural hazard risk is declared.
The LIM report should provide you a good overview of the extent of the flood risk to the house.
2. Check online council hazard maps
If you don’t have access to a LIM report or do not want to pay for one, you may be able to find flood risk information online.
Most local councils now release public online Geo Mapping for natural hazard risks on houses. Unfortunately, each regional council has different maps so you will need to find the relevant one for your home.
Try searching the internet for your local council’s name and adding ‘hazard maps’ to your search term.
If you can find your council’s online mapping tool you will then need to filter through the different natural hazard types. Then enter your address and add the flood zone layers and you will be able to see how and if your property lies over a flood zone. There should also be information available about the extent of the flood risk.
3. Be prepared to pay more
If your house is in a flood zone it is likely you will be able to get cover. But it may not be with your first choice as insurers are more likely to decline cover in flood-prone areas.
Depending on the extent of the flood risk at your house, you may either pay more for a premium or have a significantly higher flood damage excess.
If we accept cover on your flood zone property, we may apply an imposed flood endorsement with a higher excess. An example of this endorsement can be seen below.
Example Flood Endorsement
We will not pay for any costs of additional materials, work or expense required solely to comply with Government or local authority bylaws and regulations, if those costs are required solely to meet the requirement of Government or local authorities to reduce the exposure to a natural hazard at the home.
An excess of $2,500 applies to any claim for water entering the Home as a result of flood, or inundation by seawater, replacing the excess shown in the schedule.
For the purpose of this endorsement, flood means the covering of normally dry land:
i. by water that has escaped or been released from the normal confines of:
a. any lake, or any river, creek or other natural watercourse, whether or not altered or modified, or
b. any reservoir, canal or dam,
ii. by rain water pooling or failing to drain away
4. Check how extensive the flood zone is
Flood zones cover much of New Zealand. Some are higher risk while others might only be minor, meaning it’s important to get an idea of the extent of the flood risk.
Risk is usually defined by the yearly frequency. The most common are 100-year flood zones. This means research and history predicts there is a 1-in-100 chance of a flood event each year.
If there is a 1-in-50 year, this means a flood is twice as likely to occur in any given year. A lower risk flood zone might only be a 1-in-200 year.
You can generally find this information either on the LIM report or mentioned on the council data.
5. Check the property isn’t at risk to other natural hazards
If you have a LIM report or found information online, it also pays to check the house is not at risk of other natural hazards.
Common natural hazard risks to houses in New Zealand include landslips and subsidence, or coastal erosion if the house is near the ocean.
Places like Whangarei are particularly prone to both landslips and flooding. It’s also common for flood zones to be around coastal erosion areas. Checking this will give you a much better understanding of the overall risk to the home.
How do I get insurance on my home that is within a flood zone or is within another high natural hazard area?
You can apply for insurance on your flood zone property by getting an instant quote via the button below. Please note the flood risk will need to be disclosed to us when you send an application. If you fail to disclose this to us, you risk having a future claim declined for non-disclosure.
As an online insurer we have limited scope to provide custom or bespoke terms. Properties within some of the higher natural hazard zones often require adjusted premium and terms. If we are sure that your property is one of several identified zones we will do our best to let you know up front when you check for a quote. Therefore, in some cases our system will let you know instantly, the hazard zone identified and that we won’t be able to provide terms at this time.
Submitting a referral
If you are able and would like to proceed with your quote, select your preferred payment option at the bottom of the quote. You will then need to disclose the flood risk and any other relevant information during the declaration questions in the application.
This will submit a referral to us which we can then review. You will not have to pay for the policy at this stage.
We may confirm to provide insurance cover on your home, or we will ask for further information if required.
Flood & Landslip Questionnaire
If you still have questions, you can complete our Flood and Landslip Questionnaire and email it to [email protected] along with any supporting documentation. We will then review your application and confirm if we can provide insurance on your home.
If you have suffered a flood and are wanting advice on your claim, please refer to our helpful claim guide.
Living near the coast has a lot going for it. Sea views, beach access and a relaxed lifestyle are a big drawcard. But coastal properties can also come with additional risks, which means house insurance is often one of the first questions buyers ask.
If you are buying, owning, or thinking about selling a coastal property, it helps to understand how insurers assess risk, and how to navigate coastal risks with confidence.
Key things you’ll learn in this article:
Whether coastal properties can be insured, and what insurers assess
How flooding, erosion and subsidence affect insurance decisions
Why some coastal homes require a customised solution
What long-term insurability could mean for owners and buyers
How to check if your property can be insured
Can I insure a coastal property right now?
In many cases, yes. Being close to the coast does not automatically make a property uninsurable.
Initio can insure a wide range of coastal properties, provided the risk profile meets our underwriting criteria at the time cover is considered. When assessing a coastal home, we look at factors such as:
proximity to the coastline or waterways
flood history or flood modelling for the area
exposure to coastal erosion
land stability, subsidence and coastal erosion risk
local hazard maps and council information
previous claims or known damage
You can obtain a quote online using the information available at the time and the details you disclose as part of the application. Depending on those details, the application may be able to be confirmed straight away, or it may be referred to our underwriting team for review before cover is confirmed.
In some situations, we may not be able to offer cover through our online model. This does not necessarily mean the property is uninsurable, but rather that it may require a more customised insurance approach that sits outside what initio is able to provide.
Does initio have concerns about erosion, flooding or subsidence?
These are some of the key risks we assess for coastal properties.
Flooding
Flooding is one of the most common risks for coastal homes, particularly where properties are close to estuaries, rivers, low-lying land, or stormwater outlets. Heavy rainfall, storm surge and rising sea levels can all increase flood risk over time. In some coastal areas, king tides can also contribute to higher water levels, particularly when they coincide with storm events.
Coastal erosion can occur gradually over many years, or suddenly during severe weather events. Properties built close to cliffs, dunes, or unstable shorelines can be more exposed to this risk.
Subsidence, land movement and coastal erosion
Coastal land can sometimes be affected by subsidence, erosion, or other forms of land movement, particularly where soils are soft, saturated, or influenced by changing groundwater or coastal conditions.
Subsidence and coastal erosion themselves are not covered under most house insurance policies. However, evidence of either can increase the likelihood of other insured events. For example, land that has experienced erosion or subsidence may be more susceptible to landslip or slope failure during large weather events, which can be covered under a house policy.
For this reason, insurers consider subsidence, land movement and coastal erosion together when assessing the overall risk profile of a property.
These factors do not automatically make a property uninsurable, but they do influence how insurers assess cover, pricing and long-term sustainability.
Why some coastal properties need a customised insurance solution
Initio is an online insurance provider. Our policies, pricing and underwriting are designed to work efficiently for a wide range of homes without the need for one-off or bespoke policy structures.
For most properties, this allows us to offer fast quotes, clear cover and easy ongoing management. However, some coastal properties have risk profiles that sit outside what can be supported through a standard online insurance model.
This can occur where a property has one or more higher or more complex risks, such as:
significant exposure to coastal erosion
repeated or severe flooding history
known land instability or subsidence
reliance on ongoing protective or mitigation works
access challenges that affect emergency response or repairs
Where a property has these characteristics, it may require a customised insurance solution tailored specifically to its risks.
Unfortunately, as an online insurance provider, initio is unable to offer customised or bespoke insurance solutions. This does not reflect the quality or care of the property itself, but rather the way certain risks need to be assessed and managed.
Our focus is on being upfront, consistent and clear, so customers can understand their options and navigate coastal risks with clarity.
Insurance decisions are based on the best information available at the time, including hazard modelling, claims experience and climate data. As this information evolves, insurance settings can evolve too.
For many coastal properties, any changes tend to happen gradually rather than all at once. Over time, this might mean things like:
fewer insurers offering cover in higher-risk areas
If a property already needs a more customised insurance approach today, it can be a sign that the risk profile is more complex than average. This does not mean insurance will suddenly become unavailable, but it is something buyers and owners may want to keep in mind as part of longer-term planning.
For some buyers, insurance is becoming another factor they consider alongside location, price and future maintenance.
If a property is more expensive or complex to insure, that may influence how some buyers assess value. That said, many coastal homes remain highly desirable, and insurance is just one piece of the overall picture.
Thinking ahead about insurability, maintenance and risk mitigation can help support both ongoing cover and future resale appeal. If you are purchasing at auction or under conditional agreement, our guide on obtaining a letter of intent explains how to confirm cover during the buying process.
Things to consider when buying or owning coastal property
If you are considering a coastal home, it can help to:
understand past flooding, erosion or land movement in the area
ask about previous insurance claims
consider how close the home is to the shoreline or waterways
think about any risk mitigation already in place
These steps can help you better understand both current and future insurance implications.
Auckland Council flood mapping example
How to check if your property can be insured
The best place to start is with a quote, or by obtaining a letter of intent.
If it is referred for review, our team will assess the details provided and explain the outcome, so you can decide on your next steps with clarity. When requesting a letter of intent, it is important to disclose all relevant information you are aware of as part of your due diligence, such as flood zoning, coastal erosion exposure, land stability concerns or council hazard classifications.
Insurance does not have to be hard, even when you are navigating coastal risks.
Written by Toby Pudney – initio’s support team lead.
Toby has been with initio since 2023 with 6 years of experience in the insurance industry. Credentials: ANZIIF New Zealand Compliance for Advisers (General Insurance Broking)
If you have two dwellings/units on your property and you rent one out long-term (90 days or more), there are some important things to consider when it comes to insurance.
What counts as a separate dwelling/unit?
If you’re renting out a second dwelling/unit – such as a separate or attached granny flat, a separate unit, or a converted space – it’s considered separate from your household. Even if the rental is on the same property title, the tenant is not part of your household. You might have a formal tenancy agreement in place, or a more casual flat-sharing or boarding arrangement, but the key point is that they’re living independently from you.
If this matches your situation:
Your second dwelling/granny flat is rented out long-term (90 days +)
The second dwelling/unit has it’s own facilities and the tenant lives independently there.
You might have a tenancy agreement, flat-sharing or boarding arrangement in place
Then you’ll need:
Two separate insurance policies to make sure you’re properly covered:
House insurance (Own Home policy) – Covers the home you live in, protecting the structure itself. Also safeguard your personal belongings by adding contents insurance.
Landlord insurance (Rental policy) – Covers the rental home, including damage caused by tenants, additional loss of rent, and liability protection.
Why separate policies matter
Our standard home and landlord (rental) policies cover only one home or unit per policy — even if they are connected, share the same address, or are on the same property title. In addition, each home/unit has different insurance needs, and having separate policies ensures you’re covered correctly and for the right things.
Get cover today
With initio, you can get a quick quote for each and buy insurance online in minutes, making it easy to ensure both your home and rental property are fully protected.
Yes, while your contents insurance covers most of your belongings up to the sum insured shown in your policy schedule, there are some limits that apply to certain types of items and situations. Knowing these limits can help you decide if you need to specify an item on your house insurance policy to ensure full cover.
General policy limit
For any single event, the most we’ll pay for all your contents combined is your sum insured (listed on your policy schedule).
Item-specific limits (unless the item is specified on your policy)
Jewellery, watches, earrings, collections, cameras – $3,000 per item
Surfboards, windsurfers, paddleboards, kite surfers, surf skis, dinghies, kayaks, canoes – $2,000 each (including parts/accessories in or attached to them)
Remotely piloted aircraft (drones) – $3,000 each (including parts/accessories in or attached to them)
Bicycles – $2,000 each
Money, bullion, unset precious stones, credit/debit cards, and stamps (not part of a collection) – $1,000 total
Parts and accessories for watercraft, motor vehicles, trailers, caravans, or aircraft (if not in or attached) – $2,500 total
Combined jewellery and watch limit
If you lose multiple unspecified jewellery/watches in one event, the total is capped at $15,000 unless your policy schedule shows a higher amount.
Special benefits with separate limits
Home office equipment – $10,000 at home, $1,500 while away
Alternative accommodation – $20,000 per event (up to 12 months)
Children living away from home – $500 per item, $5,000 total
Hidden gradual damage – $2,000 per year
Credit/debit card fraud – $500 per year
Overseas travel cover – $5,000 per trip (up to 3 weeks)
Keys and locks – $1,000 per year
Stress payment – $2,000 once per total loss claim
When to specify an item
If you own high-value items (like an engagement ring, top-end bike, or premium surfboard) that are worth more than these limits, you can list them as specified items on your policy for full replacement cover.
If you’re still unsure, you can reach out to us directly – or even use an AI chat tool to quickly search your policy for specific details – just remember to always double-check the results!
You know some items need to be specified, but what about everything else that might already be covered?
We’ve put together a list of common “am I covered?” questions our customers often ask. It’s not a full list, so it’s always best to check your policy wording for the full details. If you’re still unsure, you can reach out to us directly – or even use an AI chat tool to quickly search your policy for specific items – just remember to always double-check the results.
Yes — if they’re permanently installed at your home, your solar panels and EV charger are covered under your initio house insurance as part of the building. They’re insured for sudden and accidental loss or damage, subject to your policy’s standard terms and conditions.
If you have a portable EV charger that isn’t permanently wired in, it may be covered under your contents insurance instead, as long as it’s for personal use. Equipment used for business or income-earning purposes isn’t covered under standard house or contents policies and may require commercial insurance.
Do you cover outdoor sports equipment (like snowboards, skis, or surfboards)?
Yes — outdoor sports equipment such as snowboards, skis, and surfboards is covered under your initio contents insurance for sudden and accidental loss or damage, but payment limits apply. The policy has a maximum of $2,000 for any surfboard, windsurfer, paddleboard, kite surfer, surf ski, dinghy, kayak, or canoe (including their parts and accessories), unless the item is listed as a specified item on your policy.
If you have high-value gear, it’s a good idea to specify it on your policy to make sure you’re covered for its full replacement value.
If you own equipment worth more than the standard policy limit, it’s a good idea to specify it on your policy. This ensures the present value of that item is fully covered, rather than being capped at the policy limit.
Are my lawnmower and gardening equipment covered?
Yes, if you have initio contents insurance, your lawnmower, robotic mower and other domestic gardening equipment are covered as part of your “contents,” as long as they’re for personal use only. The policy specifically includes domestic garden appliances (such as lawnmowers, hedge trimmers, and similar tools) and their parts or accessories. They’re covered for sudden and accidental loss or damage, subject to your policy’s standard terms and conditions.
If your gardening equipment is used for business purposes — for example, if you run a lawnmowing service — it won’t be covered under your standard home contents policy. In that case, you’ll need commercial insurance to make sure you’re protected.
Is my home office equipment covered?
If you use a room in your home (or an outbuilding) solely as a home office for clerical work, our home policy covers that space, and your contents cover will extend to office furniture and equipment used for earning income—up to $10,000 at home and $1,500 while temporarily elsewhere in NZ. Learn more about when you need commercial insurance.
What about my spa pool or outdoor furniture?
Yes — if they’re portable and for personal use, your spa pool and outdoor furniture are covered under your initio contents insurance for sudden and accidental loss or damage, subject to the policy’s standard terms and conditions. Portable spa pools are included in the definition of “contents,” but fixed or built-in spa pools are considered part of the home and covered under your house insurance instead.
Outdoor furniture is also treated as contents, so it’s covered while at your home. However, like all contents, it won’t be covered if it’s used for business or income-earning purposes.
Is my medical equipment (including hearing aids) covered?
Personal medical equipment like hearing aids, mobility aids, and insulin pumps are automatically covered under our Own Home Contents policy. Learn more
If you’re ever unsure about whether something is covered under your policy, the safest option is to check your policy wording or get in touch with us. Our team can walk you through the details, explain any limits that might apply, and help make sure you have the right cover in place for your needs.
If you’re ready to start your journey with initio, you can get a quote online in just a few minutes — see your price, choose your cover, and get protected straight away. And if you ever need to make a claim, our simple online process through your customer dashboard means you can get it lodged quickly, without the usual paperwork headaches.
House contents insurance is designed to protect the things inside your home – the personal belongings that make it yours.
Initio’s house insurance includes the option to cover your contents, so your personal belongings are protected for repair or replacement if something happens, typically on a new-for-old basis. This includes most household items, with some exceptions that are covered for their current market value, such as clothing, books, and certain electronics. The policy also provides cover for contents in transit or temporarily in storage, and offers personal liability protection up to $1 million for accidental damage you may cause to others’ property in New Zealand.
When you take out contents insurance with initio, you’ll set a total sum insured, the maximum amount we’ll pay if all your contents are lost or damaged. This is usually based on the cost to replace everything you own in a total loss. However, some items have specific payout limits, even if your overall sum insured is higher. These limits apply to things like jewellery, bikes, artworks, and certain electronics, and are designed to reflect their typical value and risk. To understand exactly what’s covered and any limits that apply, it’s important to review your policy wording. That way, you can decide if you need to specify high-value items separately to ensure they’re fully protected.
If you’re still unsure, you can reach out to us directly – or even use an AI chat tool to quickly search your policy for specific details – just remember to always double-check the results.
It’s worth noting that initio does not currently offer stand-alone contents insurance. To get contents cover, it must be added to an active house insurance policy for the same property. If you only need to insure your contents, such as when you’re renting or not insuring the home itself, initio is not able to provide contents cover.
This is the website of Initio Limited (initio). The administration of the website is performed by initio. The arranging of insurance contracts on this website, as well as policy and claims management is the responsibility of initio. ‘We’, ‘us’, and ‘initio’ refers to Initio Limited.
The postal address for initio is: PO Box 319, Hamilton 3204
The physical address for initio is: Level1, 6 Garden Place, Hamilton Central, Hamilton, New Zealand
All email correspondence can be directed to [email protected] Our telephone contact number is + 64 7 929 4126.
Our web server automatically recognises a user’s domain name.
We collect:
Email addresses of those users that communicate with us via email.
Email addresses of those who make postings via online chat.
Email addresses (and other personal information as supplied by the customer) of customers who chose to transact with us, including users who email themselves a quote from our website.
Aggregate information, data, and record of pages unidentified users access or visit, and how they interact with those pages.
User-specific information, data and record of pages a customer accesses, completes, or visits, and how they interact with those pages.
Information volunteered by the customer/user during the quote, sign-up and claims process.
Specific personal contact and other information as supplied by the customer/user during the insurance signup and claims process.
Risk data about properties or vehicles that we may quote on or insure. We may use third parties in order to collect this data.
Personal contact information (including but not limited to email address, property location, and phone number) and risk information supplied to us by our partners, affiliates, and resellers through referral programs and other methods.
We Store:
The above information on our secure servers and related software and database applications.
The information we collect is:
Shared with insurers (and their agents) who assist in providing support for the insurance placement, our internal operations, and underwriting of risk.
Shared with an association, club, buying group or other business that are partners of initio and that our customer is a member or customer of. This information is limited to the customers name, the address of the insured property or vehicle year/made/model, effective date of cover, expiry date of cover, insurer premium, type of transactions (eg renewal), and payment type and interval
Shared with broker partners who have advised their customer to insure with initio, and that cover has been placed through that broker’s dedicated gateway or page.
Used by us to contact consumers by phone, email, or text message for marketing, follow-up or feedback purposes.
Disclosed when legally required to do so, at the request of governmental authorities conducting an investigation and audit.
Used to verify or enforce compliance with the policies governing our website and applicable laws or to protect against misuse or unauthorised use of our website.
Disclosed to any successor entity in connection with a corporate merger, consolidation, sale of assets or other corporate change.
Used to underwrite and bind insurance policies.
Used to submit claims to insurers.
Shared with associated suppliers, current or prospective insurance capacity providers,and service providers for claims processing and management.
Used for all other purposes relating to the placement and management of a customer’s insurance.
Shared with storage providers (including “cloud storage”) within New Zealand and overseas. We use reasonable endeavours to ensure people we disclose your personal information to outside New Zealand are required to protect it in a way that provides comparable safeguards to those set out under New Zealand privacy law
We Share:
With referrers/affiliates: where you have been introduced to initio by a Referrer or Affiliate we will share with that Referrer your name, your initio client number, and when you transacted with us.
If the Referrer is the market comparison website Quashed, as per your arrangement with them, we will share additional information including the address of the insured property and provide to them a copy of the initio policy schedule.
With partners: Where you have been introduced to initio by a Partner organisation (such as the New Zealand Property Investors Association or a Mortgage Advisor), of which you are a customer or member, we will share with that Partner the location of the risk (eg address of house insured), the period of insurance cover, the premium, the type of transaction (eg renewal, or new), the payment type and interval (eg annually or monthly), and if applicable the particular business, branch, office or region you are associated with.
With insurance brokers: Where your insurance placement has been facilitated through a broker, we will share with that broker the information we collect (as defined above). The way we do this is through reporting, and by providing your broker with copies of all communications and documents. For example, any email a customer receives from us will also be copied to that customer’s broker. This includes sharing with the broker the information about and correspondence we have with you, relating to any claims you make with us. We may also share information with the customer’s broker on specific request from the broker, and this may include but is not limited to claims records, claims status, policy insured values, excesses and the like.
With insurers: Initio is underwritten by a registered Insurer. We will share the collected information with this insurer either automatically or on request from the insurer. The insurer holds the ultimate risk for the customer’s insurance, and the information we collect is relevant for that insurer’s underwriting of the risk and assessment of claims.
With advertising providers: We may share certain information with advertising platforms to deliver and improve our marketing campaigns. This includes identifiers, website interaction data, and transaction information necessary for campaign measurement and optimisation.
You have the right to:
1. Request all information that is held about you by us. 2. Request that information held about you is corrected.
Cookies:
Cookies are small data files that a website host computer sends to, or installs on, a user’s computer to help it remember information you enter, by passing a unique ID between your computer and the initio website that identifies you.
We use ‘first party’ and ‘third party’ (including, but not limited to, Google Analytics, Google Signals and Hotjar) cookies on our website. The information recorded and tracked includes:
Information that users/consumers input when obtaining quotes or filing in the online forms.
User-specific information on pages users access, visit, complete.
Past activity on our site in order to provide better service when visitors return to our site.
Data on user behaviour and their devices (and across those different devices), including device screen size, device type, browser information, country location,
We use this information to help us understand how you engage with our website and enhance your experience while visiting our website.
Google Analytics & Signals
This technology enables initio to obtain visitation information across multiple devices (eg laptop, phone) when a user is signed-in and who have consented for this association with google. The google information may include end user location, search history, youtube history, and data from other sites that partner with Google. The information is aggregated and anonymised.
You can access your Google Analytics data and / or delete it by visiting My Activity.
Hotjar Hotjar is a technology service that helps us better understand our users’ experience (e.g. how much time they spend on which pages, which links they choose to click, what users do and don’t like, etc.), it enables us to build and maintain our service by means of user feedback, and it allows us to track user specific information including sign-up form errors and the completion of online forms, such as claim forms. Hotjar also uses cookies and other technologies to collect the data For further details, please seeHotjar’s Privacy Policy.
Specifically, we use Hotjar’s User Attributes service which includes Personally-Identifying-Information (PII). On your request, by email to the address above, we will delete the Hotjar PII we hold on you.
Changing or disabling cookies If you do not want to be recorded by Hotjar, you can disable it by setting the DoNotTrack header in your browser. For more information and more about Hotjar’s data processing, please visit: www.hotjar.com/legal/compliance/opt-out.
You can choose to delete or change the settings of your cookies from your internet browser.
NZ Motor Vehicle Register
Waka Kotahi NZ Transport Agency (NZTA) administers the New Zealand Motor Vehicle Register, which contains information about vehicles in New Zealand and the people they are registered to.
Initio Limited may access the Motor Vehicle Register for the purposes of assessing or processing an insurance policy or claim in relation to a vehicle, pursuant to section 241 of the Land Transport Act 1998 (LTA) and Gazette Notice 2022-au4072 of 28 September 2022.
If you prefer not to have your name and address accessible through the Motor Vehicle Register under section 241 of the LTA, you can notify NZTA. Visit www.nzta.govt.nz for details on what the Motor Vehicle Register entails and how to opt-out.
General:
If you do not want to receive email from us in the future, please let us know by sending us an email to the address noted at the top of this page.
If you supply us with your postal address online you may receive periodic mailings from us with information on new products and services or upcoming events. If you do not wish to receive such mailings, please let us know by emailing or calling us. You may also receive emails from us with a quote to insure that address if it is a residential address that is not already insured with initio.
Persons who supply us with their telephone numbers online may receive telephone contact from us with information regarding renewals, support, new products and services. If you do not wish to receive such telephone calls, please let us know by sending us email at the above address.
If our information practices change at some time in the future we will post a new version of the privacy policy to our site. Once updated you are deemed to be given notice of our new policy.
Through the customer dashboard, which can be accessed by the customer with a password protected login, we provide customers with access to transaction information (e.g., dates on which customers made purchases, amounts and types of purchases) contact information (e.g., name, address, phone number) that we maintain about them, current and historical invoices and covers, current and previous claims information.
Customers can have this information corrected by updating the information on the dashboard or by email to the above address.
We ask for customer reviews of our service. We do this online after a new policy, a renewal of a policy, or after a policy alteration. If the customer provides a review or star rating, we may use this customer provided star rating and the feedback provided to let other customers know what other customers think of initio. The review or star rating will display as a first name, the date the review was provided, the geographic location, and the insurance cover the review relates to. For example, John from Hamilton, 8 August, Landlord Cover. We will never reveal a customer’s full name or contact information.
We may use this review feedback on our website or as part of marketing material that is published outside of our website.
By providing a review, you consent to the way we will use this information. We can remove or adjust your review on your request by email to the above address.
With respect to payment security and when we pass financial and credit card information we use secure third partes, Windcave Hosted Solution, and Stripe.
If you feel that this site is not following its stated Privacy policy, please contact us to discuss.
You’ve found your dream house: it’s a gorgeous bungalow from the 1920’s. It’s picture perfect, but will it be hard to get insurance?
Why are older houses harder to insure?
Before 1935, New Zealand had no unified set of building standards. Some councils had their own bylaws, but many had no standards at all. The 1931 Napier earthquake was a wake-up call; the scale of damage made it clear that many popular construction methods were unsuitable for a country built on active fault lines.
In 1935, New Zealand’s first set of building standards were introduced. These set the basis for the Code of Compliance regulations we have today.
Houses built before 1940 can be a riskier proposition, and insurance companies – being naturally cautious creatures – need to do a little more due diligence before agreeing to cover these properties.
So, can I insure my old house?
For houses built in the 1940’s onwards, no problem – we can provide an instant quote and cover online.
If your house was built before 1940 you can still get a instant quote, but we’ll need to check over a few more details before we can confirm cover. At a minimum, we will require that it meets the conditions below.
Our minimum requirements for pre-1940 houses
1. No original electrical wiring (including switchboards)
Electrical wiring in the early 1900s was cloth-wrapped rubber, insulated in metal conduit. This was highly prone to deterioration and has been a leading cause of house fires. As a result, many houses were rewired during the 1950s and 1960s.
However, there are still properties around with their original wiring. We need to have confirmation the original wiring has been replaced with TPS (thermoplastic-sheathed) wiring.
if you’re unsure, you can get a registered electrician to inspect and provide a wiring certificate to confirm it is TPS.
2. Roof replaced within the past 30 years, or in good condition
An iron roof is expected to last about 50 years. As a roof ages, it will rust and loosen, and leaks can develop. Good maintenance and regular painting will get you so far, but eventually it will need to be replaced.
Faulty roofs are a leading cause of property damage. Therefore, we will consider cover only if your roof has been replaced in the last 30 years or is shown to be in good condition.
3. No walls lined with Scrim or Sarking
Scrim is hessian sacking that is stapled to thin wooden strips known as sarking. Think of it as kindling and newspaper – the perfect fire-starter. Wallpaper was glued directly to the scrim, and in old houses this may have been wallpapered and painted over many times.
To check if your house still has scrim, try the knock test. Scrim will sound like you are knocking on wood, and it will be hard to distinguish any studs. The wallpaper also might ‘float’ or bulge in some areas or have a texture from the hessian fabric underneath.
Because of the increased fire risk, we need conformation there is no scrim or sarking, or that it has been removed.
4. No Historical Classification
Occasionally, older houses have a local council or government historical classification. This means there are strict rules around preserving the building style and fabric of the house. If it’s damaged, the government may require it to be repaired to a certain style with particular materials.
This can make a potential claim very complicated. Because there are rebuild requirements that we cannot meet – for instance, old houses often used native Kauri wood, which is no longer available.
We are unable to insure your house if it has a historical classification. You can search addresses on the government’s Heritage List here.
5. Exterior cladding has no outstanding maintenance
New Zealand homes are often clad in weatherboards, which were originally made from native timber. Unlike modern materials, weatherboards require frequent maintenance, including regular painting. Unmaintained weatherboards on older homes will begin to rot over time, reducing weather-tightness.
We require at a minimum that your house has no cladding defects, such as rotting.
6. Original piles and foundations with no defects
It is common for older houses to have foundational issues. Sagging or wavy floorboards are an indicator of problems with the piles. Check under the house for any cracks and signs of shifting, or decay in the timber piles. Mould can also be an early warning sign of weak foundations and other problems.
Sinking or rotting foundations are structurally unsound and therefore unsafe. For us to consider insurance, there must be no problems in your house’s foundations. Fortunately, old houses can be professionally re-piled.
My house meets those conditions – what’s next?
Fantastic, there’s a good chance your pre-1940 house can be covered. If you know your old home meets our requirements, go ahead and get a quote below.
If you want to go ahead with your quote, you’ll need to scroll to the bottom, select your preferred payment method, then select ‘submit referral’. This will take you through our online application where you can submit a cover request for your house (you won’t need to make any payment just yet!).
Our team will review your application, and get back to you to confirm if we can offer you cover.
My home’s been fully renovated, what date of build do I use?
Whilst the fact that the home has been fully renovated will be of importance to us, you do need to declare the original home build date on the application as the decade built.
It will help you (the client) make an informed decision whether we (initio) will provide advice and access to products that are suitable for your needs and whether to seek, follow or accept the Financial Advice. This Disclosure Statement is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020.
Before purchasing any financial product through us, you should read the Policy Wording applicable to the insurance product you are purchasing which is available online. The Policy Wording contains information about the product to help you make an informed decision about whether or not to buy the product.
We are licensed Financial Advice Providers under the Financial Market Authority of New Zealand (FMA). Financial Services Legislation Amendment Act 2019 requires initio to hold a current license for Advisers to provide Financial Advice Services to our Clients. To view our license go to the Financial Service Providers Register and search our Financial Service Provider (FSP) number’s FSP523166, or click on the link provided to go directly to our registration. As Licensed Financial Advice Providers, we have standard conditions on our license, these conditions are not specific to initio and do not limit or restrict advice that may be given.
What Financial Advice can we provide to you?
Initio is licensed to deal in and provide Financial Advice on general insurance products.
Who do we act for?
Initio acts for and on behalf of our insurance product provider IAG New Zealand Limited (IAG) (the insurer) that is licensed by the Reserve Bank under section 19 of the Insurance (Prudential Supervisor) Act 2010. To view the Insurer rating, click here. The insurer issues and underwrites the insurance products. Initio is authorised by the Insurer, to enter into, amend, and cancel insurance, and to administer claims on behalf of the Insurer.
How do we get paid for the Financial Advice and Products that we provide to you?
Initio does receives a commission when you, the client, purchases an insurance policy.
The commission is paid to us by the Insurer (product provider).
For house and contents insurance products the commission paid to us is 22.5% of the insurer premium portion of the policy charge
For motor vehicle insurance products the commission paid is 10.0% of the insurer premium portion of the policy charge premium.
The commission we receive is put towards (among other business expenses), paying our staff, managing policies, providing support services, communications costs, building lease, training and operational costs. The commission is a payment that recognises the cost of delivering such functions, administration, and services that would otherwise be a cost to the insurer
Initio may handle claims on behalf of its insurer as part of its delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio on claims handled and settled on behalf of the insurer. This handling fee does not impact your claim or the total reported cost of your claim. The fee received is not related in any way to the outcome or settlement amount of the claim.
All Initio staff are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Initio employees do not receive any commission or other incentives for giving Financial Advice or selling an insurance policy
What fees do we charge?
There are some parts of your transaction with Initio that will attract fees. We would like to provide more information about where we do, and don’t, charge transaction fees:
For new house, contents, and car policies, and for the subsequent renewal of those policies, initio will charge a transaction fee of between $3 and $50 + gst per policy.
The fee is shown on your quote and invoice and is payable by you, when a new or renewal transaction is processed on the Initio platform.
Initio does not charge a fee for policy changes or alteration, certificates of insurance, or policy cancellation transactions.
The fees we charge are designed to recover costs associated with transaction processing including bank and payment provider processing costs, credit card merchant charges, and obtaining property risk and vehicle data from third parties, the cost of providing regulated financial advice. The fee also contributes towards the cost of running and securing the initio technology platform, including maintenance, hosting, and security.
How do we pay other parties?
Where you have been introduced to initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement entered into with that partner/referrer.
Referrers can receive a one-off payment for you becoming a client of ours.
Partners and Brokers are paid as a percentage of the premium when you first take out the policy, and for subsequent renewals or changes to your policy.
Any remuneration paid to our partners or referrers is not charged directly to you, the client, and does not affect the amount you pay.
What information do we share with other parties?
Where you have been introduced to Initio by a Referrer (such as homes.co.nz) we will share with that Referrer your name, your Initio client number, and when you transacted with us.
In addition, if the Referrer is the market comparison website Quashed, as per your arrangement with them, we will share additional information including the address of the insured property and provide to them a copy of the Initio policy schedule so that it can be added to your Quashed dashboard.
Where you have been introduced to Initio by a Partner organisation (such as the New Zealand Property Investors Association), of which you are a customer or member, we will share with that Partner the address of the insured property (but not your name), the period of insurance cover, the premium, the type of transaction (eg renewal, or new), the payment interval (eg annually or monthly), and if applicable the particular branch, office or region you are associated with.
Where you have been introduced to Initio by your, or an, Insurance Broker, we will share with that Broker a significant amount of the information we collect about you, the policies put in place, and your claims. The way we do this is through reporting, and by providing your broker with copies of all communications and documents. For example, any email you receive from us will also be copied/provided to the broker. This includes sharing with the broker the information about and correspondence we have with you, relating to any claims you make with us. We may also share information with broker on specific request from the broker, and this may include but is not limited to claims records, claims status, policy insured values, excesses and the like. If you insure with us through a broker, that broker is deemed to be your agent.
How can you depend on the Advice you receive?
Initio and our advisors have not been subject to any reliability events. A reliability event is something that might materially influence you in deciding whether to seek advice from us. As an example, it would include legal proceedings against initio, or if an advisor had been discharged from bankruptcy in the last four years.
How to make a Complaint
If you have a problem, concern or you are dissatisfied with either a product or Financial Advice service that has been provided by us or our advisers and you require action to be taken, please tell us so that we can help and fix the issue. To make a complaint, or to find more details on our complaints process including how to make a complaint please click here.
We will approach all complaints with an open mind, listen, and treat each complainant as an individual and with courtesy and respect. We will promptly acknowledge the complaint and every attempt will be made, to resolve your complaint in a timely manner, with staff escalating as necessary to Senior Management or Complaints Manager.
You will receive a written decision, remedies, and resolution as soon as practicable after we have decided the outcome.
What to do if you are not satisfied after making a Complaint
If you feel your complaint is not resolved to your satisfaction using the Initio complaints process, or you are unsatisfied with the response or resolution, you can contact Insurance & Financial Services Ombudsman Scheme (IFSO). IFSO is a dispute resolution scheme of which we are a member. This service will cost you nothing and is an independent service that will help investigate or resolve the complaint. You can click here to find out how to make a complaint to IFSO.
Our advisers give Financial Advice to clients on initio’s behalf, when giving specific advice all our advisers must:
Hold a Level 5 New Zealand Certificate in Financial Services (or equivalent)
Maintain competence, knowledge, and skills for giving Financial Advice by completing continuing professional development.
Abide by the Code of Professional Conduct for Financial Services and have Ethical behaviour, good conduct, and provide client Care.
Listen to the client carefully to discover their needs.
Recommend products or services that meet the client’s needs and explain why.
Give clear and concise communication.
Protect client’s information.
Give priority to the client’s interests when giving Financial Advice.
Who licenses and regulates us?
The Financial Markets Authority. You can report information about us to the Financial Markets Authority.
If you have a complaint we have a procedure, which can be found here.
You can change how you pay for your policy. There are two key timings to be aware of when making a change:
At renewal (your annual anniversary) – the change can be done as part of the renewal transaction.
Mid-term (during the insurance year) – a new policy is required.
You should also check current premium rates before taking out a new policy. These may have changed since your last rates were set. You can check current premium rates at any time by using the quote options from your dashboard (home insurance + or car insurance +).
Changing from monthly to annual
If you want to change from monthly to annual payments at anytime, you will need to set up a new annual policy. Here’s how:
Log in to your dashboard.
Create a new quote using the ‘+’ options available. The new policy will be subject to the rates in place on the day you change. You may therefore, wish to check the pricing options before deciding to change.
Customise the quote as required.
Select the “Pay annually” option.
Complete the application form and make the annual payment.
Once the new annual policy is active, cancel your original monthly policy. Any unused portion of premium will then be automatically calculated and refunded.
Unfortunately, due to the different payment technologies used for monthly and annual payments, we’re unable to simply change an existing policy mid-term.
Changing from annual to monthly
What if I want to switch from annual to monthly payments?
How to achieve this depends upon the timing of your insurance year;
At your annual renewal
If your home policy is due for renewal, you can switch from annual to monthly by selecting the “Pay monthly” option during the renewal process from your customer account/dashboard.
Mid-term (during the insurance year)
If you want to change to monthly payments before or after your renewal date, you’ll need to set up a new monthly policy:
Log in to your dashboard.
Create a new quote using the ‘+’ options available. The new policy will be subject to the rates in place on the day you change. You may therefore, wish to check the pricing options before deciding to change.
Customise the quote as required.
Select the “pay monthly” option.
Complete the application form and make the first monthly payment. The subsequent monthly payments will fall on the same day of the month that you start this policy from.
Once the new monthly policy is active, cancel your original annual policy. Any unused portion of premium will then be automatically calculated and refunded.
Payment Options
Can I pay monthly by bank transfer or direct debit?
No, Monthly payments require a valid credit card or visa debit card and cannot be paid for by any other means.
Can I pay fortnightly, weekly or quarterly?
No, we only offer monthly or annual payment frequencies. We do not have alternatives available.
Remember, it’s always important to review your options carefully to make sure you’re selecting the best one for your needs.
