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If you rent out a room or your entire home to short-term tenants or holiday guests, your standard house insurance may not cover you.
Short-term rentals, including Airbnb and Bookabach stays, increase your risk exposure. Before listing your property, it is essential to understand how this affects your insurance cover.
Quick summary
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You must disclose short-term renting to your insurer.
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Standard house or long-term landlord insurance may not apply.
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Airbnb Host Guarantee is not insurance.
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Loss of rent, guest damage and meth contamination may require specialist cover.
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Some short-term rentals may require commercial insurance.
Do I need to tell my insurer about short-term tenants?
Yes.
Failing to disclose a change in occupancy can result in non-disclosure. This may lead to a claim being declined.
If you plan to rent out:
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A spare room
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Your entire house
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A holiday home
You must inform your insurer before guests stay.
Policies designed for owner-occupied homes or long-term residential tenants are unlikely to automatically cover short-term guests.
Does standard house insurance cover Airbnb or holiday guests?
Not always.
Even if you disclose short-term renting, you must confirm the policy provides specific cover for this use.
Key questions to ask your insurer:
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Is guest damage or theft covered?
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Is loss of rental income covered following damage?
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Is meth contamination caused by guests covered?
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Are there limits that apply to short-term occupancy?
Simply maintaining your existing policy is not enough. The increased risk profile requires appropriate cover.
When is commercial insurance required?
If your property is used solely for short term guests, it may not meet the Earthquake Commission definition of a residential home.
In some cases, the property may be treated more like a motel. This can require a commercial insurance policy instead of a standard domestic policy.
Always confirm how your property use is classified.
Is Airbnb’s Host Guarantee enough?
No.
Airbnb’s Host Guarantee is not an insurance policy. It has extensive terms, conditions and time limits.
There is no guarantee of payment. Security deposits are also controlled by Airbnb, meaning you cannot automatically retain them to cover damage unless Airbnb and the guest agree.
You should not rely on platform guarantees as a substitute for proper insurance.
What risks increase with short-term tenants?
Short-term occupancy increases exposure to:
Having the correct insurance cover is critical to managing these risks.
How to reduce risk when hosting short-term guests
If you choose to rent through platforms such as Airbnb or Bookabach, consider the following precautions:
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Review guest profiles and online reviews carefully.
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Ask for references if needed.
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Do not complete bookings or payments outside the platform.
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Be cautious of requests involving cash or prezzy cards.
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Question last-minute extended bookings, particularly in remote locations.
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Refund cancellations only to the original payment method.
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Remove valuable or sentimental items.
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Consider installing a meth alarm.
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Store spare keys securely.
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Maintain good relationships with neighbours who can report suspicious activity.
Risk reduction does not replace insurance, but it helps protect your property.
Frequently asked questions about short-term rental insurance
Does renting a room occasionally affect my insurance?
Yes. Even occasional short-term stays can change your risk profile and must be disclosed.
Will loss of rent be covered if guests damage the property?
Only if your policy specifically includes loss of rent for short-term occupancy.
Does landlord insurance automatically cover Airbnb?
Not always. Policies designed for long-term residential tenancies may not extend to short-term guests.
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Such as a bedroom or a self-contained unit/area?
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.
Own Home, Partially Rented insurance
What does this policy cover?
Having the right policy means you’re covered for:
- 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.
Own Home, Partially Rented insurance
Why is this policy important?
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:
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 Rented policy. Similarly, if you have a family bach or holiday home that you occasionally let to paying guests, it may be suitable for our Holiday 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 cover at 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.
Holiday Home Insurance
Holiday Home vs Own Home
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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):
Start by buying one landlord insurance policy, then add a second through your dashboard (instructions below)
Buy Landlord Insurance
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.
Buy Multi-unit Insurance
How to add a policy for a second dwelling on the same title:
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Search for your home address & ‘see full quote’
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On the full quote screen, click ‘back’ to edit the second dwelling’s details if needed.
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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:
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.
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Here are some of the great features of the Initio landlord insurance policy:
| Description of Cover |
Limit of Cover |
Excess |
| Full replacement Dwelling Cover up to Sum Insured |
Your Sum Insured |
Your Choice of $400 / $650 / $1,150 / $2,000 |
| Major Malicious Damage by Tenant (Fire & Explosion) |
Your Sum Insured |
Greater of $500 or Your Chosen Excess |
| Deliberate Damage by Tenant |
$25,000 |
Greater of $500 or Your Chosen Excess |
| Methamphetamine Contamination – manufacture |
Your Sum Insured |
Your Chosen Excess |
| Methamphetamine Contamination – consumption |
$30,000 |
$2,500 |
| Loss of Rents Cover (following property damage) |
$20,000 – $80,000 |
Nil |
| Landlords Contents |
$20,000 – $40,000 |
Your Chosen Excess |
| Hidden Gradual Damage Cover |
$3,000 |
Your Chosen Excess |
| Landlords Legal Liability Cover |
$2,000,000 |
Your Chosen Excess |
| Full Earthquake Cover |
Your Sum Insured |
$5,000 |
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
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Most quotes with initio are fast and simple. However, sometimes additional review is required. This may happen due to mapping discrepancies, flood zone data, new build addresses, or property-specific risk factors.
This guide explains common reasons your quote may not proceed instantly and what to do next.
Quick summary
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If your address does not appear, you can enter it manually.
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Flood zone data may differ from council maps.
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Flood cover cannot be removed from the policy.
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Some quotes require underwriting review before cover is offered.
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Risk-based pricing is automated and cannot be manually adjusted.
I can’t find my address in the quote tool
If your address does not appear in the search results:
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Select the blue option under the address box that says “I can’t find my address”.
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Enter your house number and street manually.
If your property is a new build in a newly developed street, our database may not yet recognise it. In this case, please contact our team for assistance with a manual quote.
Why does your website say my home is in a flood zone?
Initio uses national risk modelling data from RMS (Risk Management Solutions). This data may differ from your local council’s flood maps. RMS uses:
Local councils may use:
Because of these differences, your property may be flagged differently across platforms.
If you believe there is an error in your flood classification, please contact our team to discuss your situation.
Can I remove flood cover if I live on a hill?
No.
Flood cover is automatically included in the policy and cannot be removed or excluded. The policy is designed to provide comprehensive protection, including unexpected events.
Even elevated properties can be affected by surface water, land movement or drainage overflow.
Can you manually adjust my risk-based pricing?
initio uses automated risk-based pricing.
Your premium is calculated using:
Individual manual pricing adjustments or exclusions are not available.
If you believe there is a significant data error affecting your quote, please contact our team for review.
Why does water supply affect my premium?
The water supply matters because it affects the risk of significant damage in the event of a fire.
Properties closer to:
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Fire stations
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Mains water supply
are generally lower risk than properties in remote areas relying solely on rainwater tanks.
This is one of several factors used to calculate your house insurance premium.
Learn more about how premiums are calculated
The map image above my quote isn’t my house
The map image displayed during your quote is automatically generated using address data.
It is for reference only and does not affect your insurance cover or policy details.
For new builds or recently developed areas, the image may not reflect the exact property.
If you are concerned about your address accuracy, please contact our team.
My quote says it needs review. What does that mean?
If your quote requires review, it means additional underwriting checks are needed before cover can be offered.
This may be triggered by:
What do I do if my quote needs review?
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Select either the annual or monthly payment option.
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Complete and submit the online application form.
Once submitted, our team will review your application and contact you directly.
There is no obligation to purchase once the review is complete.
If you are insuring multiple properties, wait until the first application is reviewed and purchased before submitting the next. This allows all properties to sit under one account.
Can I start a new quote?
Yes.
If you want to double-check your details or start fresh, you can generate a new quote online at any time. The quote tool will guide you step-by-step.
Get a quote
Frequently asked questions
Why would a quote need manual review?
Certain property features or risk factors require additional underwriting checks before terms can be confirmed.
Does a flood flag mean I cannot get insurance?
Not necessarily. It means flood risk has been identified and may be factored into an underwriting decision.
Can I exclude certain risks to reduce my premium?
No. The policy provides comprehensive cover and does not allow removal of core insured events.
Related articles
At initio, we don’t ask you 30 questions to get a house insurance quote. We simply ask one – what’s your property address?
We can do this because we use verified property data instead of manual forms. By entering your address, our system pulls key details automatically, letting you see a quote in seconds.
While many insurance providers rely on long application forms and manual inputs, our system does all of this heavy lifting for you behind the scenes. In a few clicks, you’ll see a quick quote – no fuss, no obligations.
How does initio know about my property?
A quick quote is the starting point for your house insurance policy. It’s based on verified property data from sources like LINZ and local councils – things like the size of the home, its construction, and whether it sits in a flood or earthquake zone.
Let’s dive into this a bit more.
Why we don’t need you to answer a lot of questions
Because our quoting engine already knows the answers. And if we see something missing, our underwriting team steps in to review it with you.
Behind the scenes is Locatio, initio’s in-house property risk scoring platform. It checks things like:
- The age of your house
- The floor area in square metres
- Whether you’re on town or tank water
- If the home sits in a natural hazard zone (like floodplains or seismic areas)
This lets us assess risk instantly and provide a quote without needing to quiz you first.
Fun fact: When we first launched our quoting system, it was so fast that people thought it hadn’t worked properly. We had to add a loading screen just to provide confidence it was doing something.
We keep it up to date by regularly refreshing the data and adapting it to new hazard insights across New Zealand. That means what you see on screen is backed by real-time information and market-leading risk modelling.
Why we built Locatio
It was built by our in-house development team in response to one of insurance’s biggest pain points: slow and confusing quote processes. By building an innovative platform to minimise a pain point in the industry, we can power thousands of quotes every month for almost every property in New Zealand, in seconds.
Does this affect my cover or my ability to choose?
No, initio’s quoting tool allows you to view at glance what you could be paying. Once you have viewed your quote, you can tailor your cover by adjusting the sum insured, choosing your excess, and adding any extras. It’s simple, clear, and takes minutes, not hours.
When we might still ask for more information
Sometimes our quoting system may not be able to find or pull data for your address. Because Locatio relies on council and LINZ data, there may be occasions where this information isn’t available. If that happens, we may need to ask you for a few extra details.
Things like new builds, title changes, multi-unit properties or subdivisions can cause the information to be unavailable due to the council records or data not being updated as of recent. Sometimes our quoting tool may not be able to pull one piece of information that is missing.
When this does happen, you will be reverted back to the property information and asked to manually add it in. While this may cause an inconvenience, it is important we have this information so we are able to calculate the risk at hand.
So what does this actually mean for you?
All of this clever tech is there for one simple reason: to make getting house insurance easier, faster, and less frustrating.
For you, that means:
- You don’t have to hunt down paperwork or guess details about your home
- You can get a quote in minutes, not hours
- You can see a price upfront without pressure or obligation
- You’re less likely to get surprises later, because the quote is based on real property data, not assumptions
By using verified information from the start, we reduce back and forth, delays, and confusion. You stay in control, with clearer information and fewer hoops to jump through.
In short, less admin for you. More confidence in what you’re looking at.
Our technology doesn’t stop at the quote
The same thinking behind our quoting tool runs through everything we do.
If your situation is straightforward and uncomplicated, you can:
- Get a quote
- Tailor your cover
- Set up your policy
- Become a customer
All in just a few minutes, online.
That tech-first approach also carries through to claims. Lodging a claim is designed to be simple and clear, with digital tools that guide you through the process and keep things moving. No unnecessary steps, no guesswork about what happens next.
We use technology where it genuinely helps, and people where it matters. That balance is what allows us to move quickly without losing the human side of insurance.
Summary
What began as a simple solution to a common problem has grown into an award-winning innovation. But the real benefit isn’t the awards. It’s the time saved, the clarity gained, and the confidence customers feel when organising their house insurance online.
Related questions and topics
Written by Natasha Arnett
Natasha has been with initio since 2023. In her first year, she worked closely with the support and marketing teams before moving into digital marketing.
She has studied with ANZIIF and holds a qualification in Understanding General Insurance Products and Policies. She also completed a Bachelor of Business at the University of Waikato, majoring in Strategic Management and Marketing.
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.
Buy house insurance
If you rely on rent from your family member for the second home/unit, we would recommend considering the Landlord policy for the second home/unit.
Own Home, Partially Rented insurance
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:
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Login to your dashboard and click on the ‘house insurance +’ button
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Search for your home address & ‘see full quote’
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On the full quote screen, click ‘back’ to edit the second dwelling’s details if needed.
.
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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:
Making sure your property has an accurate Sum Insured, or replacement value, is the single most important thing when insuring a house. Insurance is designed to protect homeowners from financial ruin, so its crucial that such a major asset, like a house, is insured for what it would actually cost to rebuild it.
So let’s start from the beginning:
What is replacement value?
The replacement value of a house is the amount it would cost to
What does ‘sum insured’ mean?
The sum insured of a house is the maximum amount that will be paid out during a ‘total loss’ event, such as the house burning to the ground or destroyed in an earthquake.
So it’s logical that the sum insured is the same as the replacement value, but depending on how the homeowner calculates the replacement value the two can be vastly different.
What costs should be calculated?
- Labour
- Demolition and removal of debris
- Building materials
- Interiors
- Foundations
- Compliance costs
- Gates, fences, walls, swimming / spa pools, tennis courts
- Other permanent structures on the property
How do I calculate these costs?
Use the free Cordell Sum Sure Calculator
Cordell Sum Sure Calculator tool
Note – every house is different, the Cordell Sum Sure calculator is just an estimate.
Or else you may want to engage a qualified Quantity Surveyor or Valuer to get a professional estimate.
How often should I check my sum insured value?
We recommend you check your Sum Insured value each year, to make sure you are adequately covered based on current market building and labour costs and inflation.
Helpful resources for calculating your house insurance
Understanding the Sum Insured insurance approach
Learn more about rebuild costs
Need to increase your Sum Insured?
If you’re insured with initio it couldn’t be easier.
You can make changes to your policy online by logging in to your initio dashboard and selecting the “Make a Change” button from the right-hand side action menu. Click on the “Cover” button, and you will now be able to update the sum insured. You will be able to see the effect on the premium, and make the payment if additional premium is due. Once your alteration has been completed your policy will be updated immediately and a current schedule of insurance will be emailed to you.
When you take out a house insurance policy in New Zealand, you are typically asked to provide a replacement sum insured for the property. This is the amount you choose will be required to completely rebuild the home and its improvements (eg driveways, fences etc ) in the event of a total loss.
However, many properties end up being insured for much less than the cost it would actually cost to rebuild them (known as under-insurance). If a major loss was to occur the sum insured chosen by the customer is not adequate to fully replace the home and the customer is left with a shortfall.
A 2016 Treasury report stated that up to 85% of dwellings in New Zealand could be underinsured by an average of 28%. Underinsurance of homes across the country was estimated to be worth $84 billion.
Previously, it was the norm for house insurance policies in New Zealand to have no sum insured, and were simply insured for replacement of the dwelling to its pre-damage size. However, following the Christchurch Earthquakes, insurers in New Zealand were left with inflated house repair costs and many changed to “sum insured” replacement policies – where the insured and insurer agree on a maximum amount to be covered. This allowed insurers to have more of a handle on their total house insurance exposure, eg so many billions of dollars of houses insured.
So, why do people get the rebuild cost of their home wrong?
There are various reasons as to why people end up underinsured (and on occasion over-insured). The main reason is that people are not experts on building costs so its very difficult to get it right.
Another significant reason for widespread under-insurance is that costs included in the replacement sum insured are often not considered. The replacement sum insured includes all the direct costs of rebuilding a home, as well as compliance costs, professional and other fees and demolition/removal costs. When such costs are ignored by insured parties, it contributes to the underinsured shortfall for fully replacing the home.
Other than a lack of knowledge on costs, some people may purposely choose to under insure their home to save premium. This is approach is very dangerous and not recommended as in the event of a major loss it may leave the home owner without adequate funds to rebuild. The premium saved only likely to only be a modest sum. If the premium is a motivator the homeowner is best to select a high excess (eg $2,000 or even $5,000) – this results in a decent premium reduction but means the little things are not covered and the big things are. Insurance is about worst-case scenario so making sure the big things (fire, flood, storm etc) are insured is key.
How do I calculate the rebuild cost (sum insured) of my home?
Knowing how to calculate and what to insure your property for can be hard. Thankfully, there are various tools that can help you with your responsibility of selecting your sum insured.
We strongly recommend taking the time to utilise resources on accurately estimating your sum insured value. Getting a quantity surveyor, calculator is an excellent option that uses council and government records on New Zealand properties to estimate the cost to rebuild your home. You can easily get an estimate by visiting the following site:
www.cordell.clickhere
The initio property insurance quote calculator will default to $2,000 per square meter replacement value. This is simply a base estimate for the rebuild cost and is not a sum insured calculator. Your sum insured can be easily be amended by adjusting the value on the initio quote screen.
Calculating the right Sum Insured – Under-Insurance in New Zealand
When you take out a house insurance policy with initio – or most insurers in New Zealand – you are asked to provide a replacement sum insured for your home. This is the figure you calculate for what you think it would cost to rebuild your house if it suffered a total loss and represents the maximum sum the insurer will pay out. Because of this estimate many houses in New Zealand end up being under insured, where the sum insured chosen by the home owner is not enough to fully replace their house and they are left with a shortfall that is often in the tens of thousands of dollars come claim time for a major loss.
While New Zealand has some of the best rates of home insurance in the world, Kiwis don’t seem to value their houses highly enough. A 2016 Government Treasury report reported that up to 85% of dwellings in New Zealand could be under-insured by an average of up to 28%. The shortfall between sums insured and the actual cost to replace housing across the country was estimated to be worth a staggering $84 billion of under insurance.
Sum Insured vs. Replacement Policy:
In the past it was the norm for house insurance policies in New Zealand to have no sum insured, and homes were simply insured for replacement of the dwelling up to its pre-damage size – with no maximum cap on the payout. This was very effective in removing the risks of homes not having adequate insurance. However, following the major Christchurch Earthquakes of 2010 and 2011, insurers in New Zealand were left struggling with unexpected and inflated house repair costs as it was difficult to estimate their total potential payouts with uncapped replacement policies. Following the troubles arising from the Christchurch earthquakes, the majority of insurers in New Zealand changed to “sum insured” replacement policies – where the insured and insurer agree on a maximum amount to be covered.
Why Are People Under Insuring?
There are various reasons as to why people end up with under-insured homes. Often, people are un-educated on building costs and do not take enough time to consider the potential costs. A common mentality for home owners is that they might think; “The chances of my house having a total loss is very small” and so they don’t fully consider or review their house’s sum insured when purchasing or renewing a policy.
Another large reason for widespread under-insurance is that particular costs included in the replacement sum insured are often not considered by people, or simply not known to them. The replacement sum insured includes all the direct costs of rebuilding a home, as well as compliance costs, professional, other fees and demolition/removal costs. Homeowners oftentimes will only regard the direct rebuild costs and exclude these additional elements. When such costs are ignored by insured parties, it contributes to the under-insured shortfall for fully replacing the home.
Other than a lack of building cost knowledge and cost exclusions, some people may purposely choose to under insure their home to save on their insurance premium. At initio, we do not recommend doing this as you can be left widely uninsured to the tune of thousands of dollars in the event of a major loss, while the premium saved is likely to only be a modest reduction. Selecting a higher excess is the most cost effective way of reducing your premium whilst still remaining adequately insured in the event of a major loss.
Making Sure You Are Not Under-Insured
Knowing what to insure your property for can be hard. Thankfully, there are various tools that can help you with your responsibility of selecting your sum insured.
We strongly recommend taking the time to utilise resources on accurately estimating your sum insured value.The Cordell Sum Sure calculator is an excellent option that uses council and government records on New Zealand properties to estimate the cost to rebuild your home. You can easily get an estimate by visiting the following site:
www.cordell.clickhere
The initio property insurance quote calculator will default to $2,000 per square meter replacement value. This is simply a base estimate for the rebuild cost and is not a sum insured calculator. Your sum insured can be easily be amended by adjusting the value on the initio quote screen.
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 for holiday 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.
Bookabach Owner 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,
Instant, reliable quotes you can count on
They say AI might take over the world someday, but for now, we’ve put it to work making your life easier – one insurance quote at a time. At initio, we’ve spent countless hours perfecting our technology so you can get a home insurance quote faster than you can say, “robot overlords.”
Simply type in your address, and our advanced system gets to work, drawing on resources like flood mapping tools, council records, and the latest data to deliver a reliable, competitive quote instantly. We can quote most New Zealand properties on the spot, there’s just the occasional scenario where the property might get referred. For more information, you might like to check out our support articles: insuring old houses and five tips to insuring in a flood zone.
Other insurance providers might claim they can give you a fast quote, but none are as quick or accurate as initio. After extensive research, we’re confident no other provider matches the speed and precision of our platform, but that’s just our opinion, feel free to try it for yourself.
No tricks or gimmicks
With initio, what you see is what you get. When you use our platform, the price displayed is the price you’ll pay – no surprises. Whether you’re insuring a house, rental property, or holiday home, our quotes are consistent and accurate.
While some providers might adjust their pricing based on how you contact them or bundle other policies, initio does things differently. We focus on transparency and simplicity so you can trust that the quote you’re receiving is fair and final.
How does our technology work?
Our system leverages multiple reliable data sources to assess your property’s risks and deliver a personalised quote within seconds. From flood zones to natural hazards, our advanced platform ensures you’re getting a quote that reflects the latest information.
Even if your property requires a referral for further review, we’ll ensure it’s assessed promptly. This guarantees your policy is built on a thorough, expert evaluation—giving you the confidence to move forward with certainty.
Why initio doesn’t offer multi-policy discounts
We’re often asked if bundling insurance can save you money. The answer is simple: initio doesn’t do multi-policy discounts because we offer you the best price for every policy right from the start. We provide a fair and straightforward process where every quote is designed to be competitive and accurate.
A fast, modern insurance experience
Initio isn’t just about speed; it’s about trust. Our platform ensures you can quote, compare and get cover in minutes – backed by a system designed to simplify your experience. No upselling, no misleading information – just an honest, reliable service powered by the best technology in the industry.
If you have questions, our team is here to help. But when it comes to finding a better deal, you won’t need to look anywhere else. With initio, you’re already getting the fastest, most accurate quote possible.
Hear from the team behind the tech
Take a look under the hood to see the tech that drives our insurance and how it’s evolved into what it is today.
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Try it for yourself
Get a quote
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:
It’s common for your mortgage provider or bank to want confirmation that you can secure insurance on any house you are looking to purchase (before they approve your loan).
This is known as a ‘Letter of Intent’. In simple words, it’s a document that confirms an insurer is able to provide cover on a house. This is usually what you would require if you are yet to purchase the home, but instead you want to make an offer or head to auction. This is different to a “Certificate of Insurance” which you would provide upon purchase of the home and, therefore, the insurance policy.
In summary, in looking to make sure you can get cover on a home, you would obtain a “Letter of Intent” prior to any purchase and a “Certificate of Insurance” upon purchase of the property.
With initio, obtaining a letter of intent is fast and straightforward. After completing a few straightforward steps, you can email a copy to yourself as soon as you’ve filled out the form.
Where can you request a Letter of Intent?
Begin by requesting a quote and completing our online application.
1. Get a quote
Visit our 30 second quote calculator here. You’ll need to enter an effective date, don’t be too concerned with this date (for a letter of intent) as it’s likely you won’t have a confirmed settlement date. At this point, it’s for quoting purposes only, choose a date as close as possible to a potential settlement date.
Get an Instant Quote
2. Complete an application
If you’re happy with the quote, you can continue by scrolling to the bottom and selecting a preferred payment interval (either monthly, or annually). But don’t worry, you won’t have to make a payment if you are only looking for a “letter of intent”.
You’ll then need to fill out our three online application pages. These include information about the property, your details, and completing the disclosure and claims history page.
Fill in these pages as if you will be the successful bidder/purchaser. This means putting your name as the property owner, etc.
3. Submit a referral, or request a Letter of Intent
If we need to review your application, the next option will submit your info for a review. In some cases, a review will require us coming back to you wanting some more information or detail, we aim to do so within one business day.
If no review is needed, you’ll go through to a summary page where there is an option below the make payment section to send a ‘Letter of Intent’ to your email. No payment is required to download the ‘Letter of Intent’ option which will give you a pre-approval document for your peace of mind and any finance. Select this option and enter your email address.
A confirmation document will be automatically sent to your email, and that’s it! You can then easily forward this to your bank or mortgage provider to finalise the process. Note that the Letter of Intent is not a Certificate of Insurance so won’t show a start date or confirm cover is in place. What it will show is that you are able to obtain cover with initio, should your purchase be successful.
If you need a Letter of Intent, start by getting a quote:
Get an Instant Quote
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How do I get a quote with initio?
Getting a house insurance quote with initio is quick and simple. Just pop your property address into our quick quote tool and we’ll do the heavy lifting for you. You’ll see your premium instantly and can customise your cover to suit your needs.
When you’re ready, choose either annual or monthly payments and follow the prompts to buy online – no paperwork, no waiting.
For more details, check out our step-by-step guide to buying your first house insurance policy.
What information do I need to get a house insurance quote?
Most of the time, all you need is your property address, and our quick quote tool will pull in the important details. You might just need to answer a few simple questions, including:
- Approximate house size (no exact measurements needed)
- Estimated rebuild cost (your “sum insured”)
- Age of the home
- The date you want cover to start
Not sure about your rebuild cost? Our quote tool links to the Cordell SumSure Calculator, which helps you estimate it. You can also read our guide to choosing your sum insured for more details.
How fast can you really get a quote?
This short demo puts our quote tool through its paces to show how fast and easy it is to use.
How do I log in?
If you already have a policy with initio, you’ll have access to your dashboard to manage your insurance. Login details are emailed to you when you buy your policy. Login here
To log in:
- Enter the email address you used when purchasing your policy.
- Enter your password.
- If you’ve forgotten your password, click Forgot my password and follow the steps.
If you’re not sure which email you used, contact our team, we can help.
Logins are only provided once you’ve purchased a home policy with initio.
Calculate your sum insured
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Owning a Holiday Home means you’re a little different. That’s why you need an insurance policy that provides good cover when you’re not there or when someone else is using it.
At Initio we understand that your holiday home could be advertised online, and that on occasion you may have paying guests staying. Or perhaps your holiday home is only used by your friends and family. When you insure with Initio we give you the choice, so you get the right cover for the right price.
Holiday homes are often left vacant for extended periods, we know this and we make sure that the cover continues regardless of when the property was last occupied. We also know that your holiday home is furnished and that some of your personal items may remain at the property, and this is why we provide you with a range of contents insurance options.
[initio_review_rating_total property_type=”holiday-home” get_quote_button=”Get Quote” get_quote_button_classes=”cta-button cta-button–orange”]
Here are some of the great features of the cover:
| Description of Cover |
Limit of Cover |
Excess |
| Full replacement Holiday Home Cover up to Sum Insured |
Your Sum Insured |
Your Choice of $400 / $650 / $1,150 / $2,000 |
| Major Malicious Damage by Guest (Fire & Explosion) |
Your Sum Insured |
Greater of $500 or Your Chosen Excess |
| Deliberate Damage by Guest |
$25,000 |
Greater of $500 or Your Chosen Excess |
| Loss of Rents Cover (following property damage) |
$20,000 – $80,000 |
Nil |
Owners / Landlords Contents
Options for present day & replacement value cover |
$20,000 – $220,000 |
Your Chosen Excess |
| Hidden Gradual Damage Cover |
$3,000 |
Your Chosen Excess |
| Owners Legal Liability Cover |
$2,000,000 |
Your Chosen Excess |
| Unoccupancy exceeding 60 days |
Your sum insured |
$5,000 or $2,000 with intruder alarm** |
| Full Earthquake Cover |
Your sum insured |
$5,000 |
** Where your property is a Holiday Home or Bach your chosen excess will apply if the property is kept in a tidy condition, all external doors and windows are securely locked, all papers and mail are collected regularly, and the home is under regular supervision.
IMPORTANT This is a summary of the policy only. Please refer to the policy wording for full details of cover.
Initio allows you to buy insurance online and enjoy some of the best policy coverage and claims service available for Holiday Home owners.
[initio_quote_calculator title=”Instant free Holiday Home quote & buy online”]
[initio_review_list property_type=”holiday-home”]
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.
Please note: the items below relate specifically to our house & contents insurance policy.
Are my solar panels and EV charger covered?
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.
Ready to protect your house and contents? Get a quote in seconds and cover in minutes
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Scenario:
- An existing client of yours is up for renewal on their House & Contents, Landlord or Holiday Home and needs cover.
- An existing client of yours has purchased a new/additional house and needs cover.
- A new customer has approached you for House & Contents, Landlord or Holiday Home insurance.
Getting your client online is easy with initio
- Use your initio landing page to quote your customer’s house
- Choose the relevant property type (own home, rental, holiday home)
- See instant quote on screen. From the quote screen email yourself the quote
- Select the expected start date of insurance.
- Set the sum insured to the amount discussed with your client, their current sum insured, or leave it as the default sum insured.
- Click ‘Save & email this quote’.
- Enter your client’s name and then your email address.
- Separately email your client the price (and high-level details of the cover) and include the ‘restore quote’ link you received in the email from initio. (copy the link/url)
- If your client would like to proceed with the cover they can click the restore quote link, which will give them the ability to dynamically things like excess, sum insured, contents etc., In this email, you may also like to compare us with other insurance companies.
Please note:
- Initio does not onboard these customers. For compliance reasons, the customer must complete the signup online themselves in order to answer the proposal questions.
- Prices can change so please select the correct expected start date.
- If the property is pre 1935, or in a certain risk zone this may trigger a referral to the initio team. They will need to review the cover, and potentially obtain further info before deciding on whether or not to offer cover.
- Alternatively, simply send your broker landing page link to the customer.
- If your client already has a property insured with initio, then simply refer to login to their own initio dash, click the ‘House Insurance +’ button, and enter the property address.
- Monthly payment is limited to credit cards or Visa/MC debit cards. Annual is a credit card or account2account (real-time bank transfer).
Helpful link:
What does the customer do once they have the restore quote link?
- Click the ‘restore quote’ link or they can re-quote from your broker landing page
- Review and make changes to the quote, eg adjust the sum insured, excess
- Confirm the start date of the cover
- Select the preferred payment option monthly or yearly
- Answer property information questions (e.g insured name, interested party)
- Fill in account details (e.g customer name, contact details)
- Answer proposal and claim history questions (e.g previous claims, convictions)
- Policy may refer at this point, initio will handle and advise.
- Make the payment online for instant cover
Please note:
- Monthly payment is limited to credit cards or Visa/MC debit cards. Annual is a credit card or account2account (real-time bank transfer).
Helpful link:
Wondering how to get your first policy with initio started? This guide outlines the entire process from getting a quote to paying for your policy.
It takes you through the basic steps of quoting, customising and changing your cover, disclosing other information and making payment.
Once you have purchased your first policy with initio, you get access to a personal dashboard where you can modify and manage all your policies online.
Get an instant quote – enter property address
If your address doesn’t come up with the details you have entered, please use the blue option below the address box that then comes up showing as “I can’t find my address”. Clicking on that option will let you enter both the house number and street manually.
If your home is a new build in a particularly new street, potentially our database may not be able to locate the street, if so, please give our team a call to obtain a quote.
Select property use
If you’re uncertain about the type of property insurance that best suits your needs, visit our ‘Choosing Your Insurance‘ support page. There, you’ll find detailed information and guidance to help you make an informed decision tailored to your unique circumstances.
Customise quote
From here you can edit the details of the quote and customise as required. This can also be done from a home quote you have previously emailed yourself using the “restore” button.
Uncertain about the proper amount to insure your property for? We’ve designed a support page that walks you through the essential factors you need to consider regarding the sum insured.
Choosing the right amount of insurance for rebuilding your home is important. This amount should be what it costs to build your home again, not what your home is worth on the market. Don’t forget to include things like fences and swimming pools, and remember that building costs might go up over time. For example, if two neighbors with the same houses insure for too little or too much, they could lose money if their houses are destroyed. The right amount saves worry and money. Tools like the Cordel Sum Sure Calculator can help you figure out how much it might cost to rebuild your house.
If you’re wondering about how much excess you should have on your insurance policy, this support page covers some of the basics. Many property owners choose to cover minor losses themselves, avoiding insurance claims for low-value damages. If this applies to you, consider raising your excess to $1,000 or $2,000 to save on premiums. Think about what you’re comfortable claiming for and your financial risk tolerance when selecting house insurance. Under initio’s landlord insurance, tenants only cover the excess on careless damage, so assess your comfort level with potential out-of-pocket expenses, and set your excess to match your ability to absorb those costs.
Insurance Start Date? Enter the date that you would like the cover to start from should you proceed with purchasing. If it’s a new home, that should represent the sale’s settlement date. If you’re changing from another insurer, use your existing expiry date. Please note that we are only able to provide confirmed quotes for policies with effective dates of up to 30 days in advance. If the effective date you need is more than 30 days ahead, please wait till you are closer to that time to quote/apply.
Once you are happy with your customised quote, you can either;
- Email yourself a copy to save a copy of the quote
- Proceed to purchase the policy by selecting either the “annual” or “monthly” payment option at the bottom of the quote. Then follow the steps below.
Enter property details
A note about selecting start date of cover; ensure its the same date as the expiry/renewal date of your current policy to ensure cover continuity (or the settlement date if purchasing a new house)
Confirm your details
Complete online proposal form
Unsure if something may affect your cover? Disclose it
How to sign your application form
Use the device keyboard to type your name in full (as the person completing the form) in the space provided.
Review and make payment OR Application requires a review?
If the payment option isn’t offered it’s because a human will need to review the application for you. Please continue to submit the application for review and we will aim to come back to you within one business day to let you know the status of the request.
Otherwise, if the payment option is available, you can either
- proceed to purchase the policy OR
- if you’re not ready to commit or haven’t yet bought the property, you can choose to download a “letter of intent” on this page. The letter of intent simply outlines that based on the information provided we are able to insure the property when you’re ready.
ALL DONE! We will instantly email you confirmation documents
Want to add another property? Click “Add insurance”
Need to make a change to your policy?
Refer to our guide here. Our website is informative and the go to for accessing your account. No need for an app, our site is available in a user friendly format on all your devices.
Looking for more information? Our top five mistakes to avoid when insuring property article might help.
If you would like to see how initio compares to other popular New Zealand insurance companies, start here.
Adding or changing your policy
Looking to buy a Motor Vehicle Policy?
Our vehicle insurance is exclusive to our home policy holders. Once you become a home policy holder with initio you can easily add car insurance from your initio dashboard using the “vehicle insurance +” option.
Ready to begin your journey with initio?
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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.
Get Instant House Quote
In some cases, we can’t provide cover
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.
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:
- Accidental or intentional damage by guests
- Theft by guests
- Loss of rent following damage
- Owners liability cover
Learn more about what the Own Home Rented policy covers.
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.
Home and Income Insurance
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.
Key takeaways in this article:
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Being a landlord comes with legal responsibilities.
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Make sure your property meets Healthy Homes Standards.
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Decide early between long-term or short-term renting.
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Set rent based on local market research.
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Screen tenants carefully and keep good records.
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Standard home insurance does not cover rental risks.
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Regular inspections and maintenance help avoid bigger costs.
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Rental income is taxable, so check your obligations.
Renting out your home in New Zealand can be a great way to generate extra income, but it comes with responsibilities and risks.
Before you rent out your home
Get the right advice early
- Refer to Tenancy Services for the latest landlord specific advice such as healthy homes and legal requirements
- You may also want to join your local property investor association for support and advice – New Zealand Property Investors Association have various branches throughout New Zealand.
- Consider whether a professional property manager is right for you.
- Services like myRent can help with advertising, tenant management, and documentation.
Understand Healthy Homes requirements
Landlords must ensure their rental meets Healthy Homes Standards. This includes heating, insulation, ventilation, moisture control, and draught stopping.
Know your legal obligations
Under the Residential Tenancies Act, landlords must:
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Keep the property in a reasonable state of repair
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Lodge the bond with Tenancy Services
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Provide proper notice for rent increases
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Keep accurate records of agreements, inspections, and payments
Choosing the right strategy
Long-term rentals
Long-term rentals provide steady income and greater stability. They generally involve less turnover but require ongoing property management.
Short-term and holiday rentals
Short-term rentals, such as Airbnb, can earn more during peak seasons. However, they require more active management, cleaning, and compliance with council rules.
They also require commercial insurance, which can cost more than standard landlord cover.
Insurance differences to consider
Landlord insurance is designed to protect against tenant damage, loss of rent, and liability claims. Always check policy conditions, including inspection and tenant screening requirements.
Setting up your rental property
Set 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.
Advertising your property
Advertise on platforms such as Trade Me Property, Facebook Marketplace, or use a property manager to find suitable tenants.
Screening tenants
Carry out proper checks before accepting a tenant. This may include:
Use Tenancy Services templates or services like myRent to ensure all legal terms are covered.
Protecting your investment
Why landlord insurance matters
Landlord insurance protects you from risks specific to renting, including malicious damage, loss of rent, and liability.
What standard home insurance does not cover
Home insurance is designed for owner-occupied properties, where the owner lives in the home. It is priced and structured around that lower risk profile. Once a property is rented out, the risk changes. There is less control over how the home is used, and there are additional exposures such as tenant damage, loss of rent, and liability issues.
Because of this, standard home insurance will not cover many rental-related risks. If your property is tenanted, you should have a landlord policy that is specifically designed for rental situations.
Your obligations under a landlord policy
Most landlord policies require reasonable tenant screening and regular inspections. Failing to meet these obligations can affect a claim.
Managing your property day to day
Routine inspections
Regular inspections help you identify issues early. Tenancy Services provides inspection checklists to guide you. myRent also have great resources in that regard.
Maintenance and repairs
Respond promptly to maintenance requests and budget for ongoing upkeep to avoid larger repair costs later.
Tracking rent payments
Use a clear system to track rent payments and maintain accurate financial records. Property management tools like myRent can assist with this.
Ending a tenancy correctly
Tenancy agreements
Ensure tenants sign a legally binding Residential Tenancy Agreement outlining rent, bond, and house rules.
Notice periods and bond refunds
When ending a tenancy, follow the correct notice periods and manage bond refunds according to legal requirements.
Understanding tax responsibilities
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 financially rewarding, but success depends on understanding your legal duties, choosing the right rental strategy, and arranging proper landlord insurance. Taking time to plan now can help you avoid costly mistakes later.
If you’re considering renting your property, take the time to research and seek professional advice where needed to avoid common pitfalls.
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