Loss of rent insurance helps protect your rental income if your property cannot be lived in or your tenant stops paying rent. Under initio’s landlord insurance, loss of rent cover is included automatically. This guide explains when it applies, how much cover you get, and what is not covered. This can also be included in our holiday home cover if you also rent your bach to guests.
Quick summary
Loss of rent is automatically included with landlord insurance.
Standard cover is $20,000, with options to increase to $40,000 or $80,000.
Cover applies if damage makes the property uninhabitable.
Cover may also apply after tenant eviction or abandonment.
Overdue rent before eviction is not covered.
Holiday homes have cover for cancelled guest bookings due to damage.
What is loss of rent insurance?
Loss of rent cover replaces rental income when you cannot collect rent due to certain insured events. This usually happens when:
Damage makes your property unliveable, or
A tenant is evicted for non-payment, or
A tenant leaves without notice.
It helps reduce financial pressure while you repair the property or secure a new tenant.
How much loss of rent cover do I get?
Landlord insurance includes $20,000 of loss of rent cover as standard.
You can increase this to:
$40,000, or
$80,000.
For property damage claims, payments stop when:
Repairs are complete and the property can be rented again, or
You reach your selected cover limit, or
12 months of rent has been paid,
whichever happens first.
When does loss of rent cover apply?
Property damage that makes the home uninhabitable
If claimable damage means your tenants must move out, loss of rent cover replaces the rental income during repairs.
Example: A flood damages carpets and internal walls. Your tenants move out while repairs are completed. Loss of rent cover replaces the rent you would have received during that period.
Cover is paid until the property is liveable again, up to your selected limit or 12 months.
Tenant eviction for non-payment of rent
If a tenant is more than 21 days behind in rent, you may apply to the Tenancy Tribunal for eviction.
Once the tenant is evicted, landlord protection under your policy can pay up to 6 weeks of rent, or until you find a new tenant, whichever comes first.
Overdue rent (arrears) before eviction is not covered.
If a tenant vacates the property unexpectedly and stops paying rent without giving the required notice, the policy can pay up to 6 weeks of lost rent, or until a new tenant is secured, whichever comes first.
Switching your house insurance to initio is quick and easy, but timing is important to make sure you stay covered every step of the way. Here’s what to do and in what order.
1. Get your initio policy lined up first
Before you cancel your current policy, start a quote with initio. You can do this online in minutes. Once you’re happy with the cover and price, set the start date for your new policy.
If you want your cover to roll over seamlessly, choose the day after your current policy ends.
If your old policy ends at midnight, set your new one to start the next day, you don’t want a gap in cover.
2. Make sure the dates line up
Your current policy should stay active until your new one begins. Even a short gap could leave you without cover if something unexpected happens.
Example: If your old policy ends on 14 June, set your initio policy to start on 15 June.
3. Sign up with initio
Once you’ve confirmed the start date, complete the sign-up online. You’ll get instant confirmation of cover and policy documents sent straight to your inbox.
4. Cancel your old insurance
When your initio policy is locked in, contact your old insurance provider to cancel your policy from the day your new cover starts. Most providers will refund the unused portion of your premium if you’ve paid in advance.
Be prepared for them to ask for proof of your new cover (you can email them your initio confirmation).
5. Double-check everything
Before your initio policy starts, check that:
Your start date is correct
You’ve got confirmation that your old policy is ending on the right date
You’ve downloaded and saved your initio policy documents
Tip: If you’re unsure about dates, start your new policy a couple of days before your old one ends — a small overlap is better than no cover.
All our policies are underwritten by IAG New Zealand Limited (IAG). IAG has received a financial strength rating of AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. Learn more about financial strength rating.
We’re constantly working on new and exciting products and features that are designed to improve our customers experiences. We would love to hear your feedback.
When you think about claims, people generally jump to their own worst fear of their property burning to the ground, and that’s exactly why we all buy insurance. Big marketing hypes insurance products as providing ‘peace of mind’, but what you’re literally purchasing is compensation in the event you submit a claim – and a reasonable expectation that any such claim will be processed and paid to you. What do you need to know about claims when it comes to your property insurance?
Don’t sweat the small stuff
Claims are there for the major events – think fire, earthquake, storm damage – but also the slightly smaller but still very costly incidents such as a leaking pipe that damages flooring that your tenant didn’t notice. Insurance isn’t there for the day-to-day maintenance of a property, so don’t use your policy for repairs, ware and tear, and upkeep, as your insurer may deny those types of claims.
What about damage and the new legislation amendments?
The recent amendments to the Residential Tenancies Act provide that a tenant is liable to pay their landlord’s insurance excess or four weeks’ rent – whichever is lesser – but only for careless or intentional damage. Accidental damage, such as spilling a glass of red wine onto fluffy white carpet, may still be the responsibility of the landlord; further Government guidance and future Tenancy Tribunal decisions will provide more certainty on this.
A snapshot of Initio’s last 12 months of rental property claims shows that unexpected events such as house fires and storms take the lion’s share of the number and value of claims:
Type of claim
Number of claims
Cost of claims
Accidental loss (e.g. storm damage, fire, burst pipe)
55%
70%
Accidental damage caused by tenants
14%
5%
Careless damage caused by tenants
7%
1%
Intentional damage caused by tenants (including meth)
16%
23%
Other/third party claims
8%
1%
What types of claims are the most common?
As the insurance provider to over $2.5 billion of Kiwi property, Initio has its fair share of claims – so based on our experience, we can give you an insider’s view on what to look out for. In the last 12 months to end of August 2019, our 4 most common claims in order:
#1 Sudden water leak (eg burst pipe) – average claim value $5,916
#2 Tennant damage (eg malicious damage) – average claim value $2,960
#3 Weather damage (eg storm, flood) – average claim value $5,732
#4 Hidden gradual water damage (eg slow dripping pipe) – average claim value $1,980
The best insurance of all is the proactive management of the risks faced by the property. For example actively keeping an eye on areas where hidden leaks are most likely to occur (under the kitchen sink and in the bathroom) will reduce the likelihood of damage. But should you get hit with a nasty loss – well, that’s exactly what insurance is for.
Take action
Many customers seem to think that they must leave their water sodden carpet festering away until the insurance assessor turns up or their insurer says it can be taken out. This is definitely not the case. My advice is to act and to start the clean-up process; take photos and get on with things. It is important to note that most insurers want you to take steps to reduce any further loss, and taken action aligns with this. The exception here is fire damage, following a fire you will want to take steps to secure the property (eg. boarding up entry doors) but you should leave the property as is so that fire investigators have the best chance of determining the origin of the fire.
Know the process
The process around submitting and receiving payment for claims can be frustrating if you don’t know how long you’ll be kept waiting, and what is required of you as a claimant. So, when choosing an insurer it’s good to take the time to understand this upfront – so if and when you suffer a loss, you know what to expect and can have confidence in the process.
At Initio we’ve worked hard to have some of best rates in the market for rental property and holiday home insurance. As well as offering competitive pricing, the cover is tailored to tenanted properties so that you can be sure to have the correct amount of cover.
There have been some who asked how we are able to provide the same cover as other providers but at a lower cost? We’ve put together a number of ways that we’ve been able to keep costs down, and some tips on how you can apply this to save on your own insurance.
Use technology to save time:
By using technology to do a lot of the legwork, admin overheads can be greatly reduced. You can save both time and money by using online services to arrange for bookings and services, including insurance.
Being an online insurance provider, we rely on technology to make it as easy and efficient as possible, and we can provide better savings because of it.
Pay your premiums annually:
Whenever it comes to paying for the insurance, you will have the option of paying monthly, or for the full year in advance. What may not be clear is that monthly payments generally use a loan company in the middle to pay for the full annual total, and then collect back the loan with interest.
Ultimately, just the choice of paying monthly can increase your insurance bill by up to 10%, and while it may be more convenient, ultimately it’s equivalent to taking a high interest loan to pay a small amount.
Simply switching to annual payments can save you greatly on your insurance bill.
Use specialists to get the right cover:
Going to a specialist provider for the cover you need will generally mean you have better cover, and often better rates. While a standard insurer may be able to provide cover for a high end classic car, going to a specialist underwriter for classic car cover means that they know the cars and have a policy tailored toward that kind of car.
Similar applies across multiple other items such as boats, holiday homes, or rental properties. Using a provider who knows their subject matter and tailors the cover for it means that you will be sure to have the best cover and price for your insurance.
At Initio we’ve taken advantage of the above to ensure you receive great cover at competitive prices. You can take these tips and apply them to your existing insurance, and compare with the other options on the market.
What you need to know about insuring your investment property.
Recently we were approached by the Auckland Property Investors Association to do a brief Q&A on landlords insurance, and some of the risks that landlords face in the modern market.
You can find some of the common questions and answers here. For more specific questions, you can always head over to our FAQ.
Q: Why do property owners take Landlord’s Insurance?
A: We have found that landlords tend to be quite sensible with their insurance decisions. The main driver for getting insurance is basic protection against the big loss risks such as fire, flooding, earthquake, and other natural disasters.
Sometimes current events will motivate landlords to seek cover for specific risks such as meth, or damage by tenants, but the “average landlord” still looks mainly to get cover for those big loss risks.
Q: What is the biggest risk for landlords and property owners?
A: The single most common cause for claims is leaking water pipes, especially in older homes where maintenance has not been carried out or has fallen behind.
Regarding what is costliest, no surprise that fires caused by wiring/electronics is the most damaging source. One of the most common sources is overloaded multi-plugs and wall sockets, especially where the multi-plugs are older/low quality.
Q: Insurance is one of those peace-of-mind expenses that people want to have but don’t want to claim on. What advice is there for investors to manage their insurance costs?
Depending on the provider and type of claims, it is true that too many claims will push up the premium. At the end of the day, insurance is there to be claimed on.
The best approach is to ask your insurer if they have any form of no-claims bonus or increase if a claim is made. While claiming with Initio will not penalise you in terms of premiums, other insurers may have a different approach. If the claim amount is just over the excess, it is worth considering not lodging.
The best advice to manage your costs is to select as high an excess as you can comfortably afford. This means you are protected against the major events, but due to fewer claims, you will end up spending less overall on your insurance bill.
Q: Are NZ landords adequately insured?
Unfortunately, not always. The Initio philosophy is to provide cover that ticks all the boxes right from the get-go. But insurance is a competitive market and some policies, while cheaper, do not include basic covers such as gradual damage, or even deliberate damage caused by tenants. If you are entirely focused on being a price-chaser than you could become underinsured.
If you have any questions or comments regarding the article, you can contact us to find out more.
Your contents cover depends on the type of insurance you have with initio. Some policies include it automatically, while others give you the option to add it. If you’re unsure about your current cover, you can check your initio dashboard.
You can add contents cover anytime. The minimum sum insured is $60,000, but you can choose a higher limit—up to $350,000.
Landlord insurance (rental property)
Your policy automatically includes contents cover for landlord chattels (items left at the home for tenants to use). This provides up to $20,000 of cover, which is a standard part of our landlord policy and cannot be removed. However, you can increase the cover anytime, up to $60,000.
Holiday home insurance (including homes sometimes let out)
Contents cover is included for items usually kept at the holiday home – like furniture, TVs, and general homeware – up to $20,000. This is a standard part of the policy and cannot be removed, but you can increase the cover anytime, up to $220,000.
Note: Personal items you take with you – such as phones, cameras, and handbags – aren’t covered under your holiday home policy. Instead, these are covered under your contents insurance policy for your usual residence.
Making changes to your contents cover
You can adjust your contents cover anytime through your initio dashboard using the “Change” option.
Paying your premium with initio is simple and hassle-free.
Monthly payments can be made using Visa or Mastercard (credit or debit). Annual policies have the additional options of online EFTPOS and Account2Account transfers for easy, secure bank payments.
Please note, initio does not currently offer direct debit OR manual transfers via your banking app or bank website. Our staff will therefore not be able to provide you with bank account information. Payment options are strictly limited to those outlined below.
Payment Frequency – We have options to pay either annually or monthly
Payment is required immediately upon the purchase of any policy. You can choose to either pay annually or monthly at that time. We do not offer other frequencies or payment terms. Paying the annual premium up front is more cost effective, this can be seen in the quoted amounts. Depending upon whether you are paying annually or monthly the following methods of payment are available;
Credit or Mastercard/Visa Debit Card (Monthly or Annual Policies)
Payment can be made online using your credit/visa debit card. We accept both Visa and Mastercard, including credit and visa debit cards.
Monthly policies automatically renew and charge your card on the same day of each month.
On an annual payment you purchase a years worth of insurance upfront (that you can cancel at anytime and get a refund for the un-used portion). Each year we will remind you when your policy is up for renewal and you will need to login to your dashboard to renew and pay for your policy
There is no credit card fee applied to your insurance purchase.
Common Queries for Card Transactions
Can I change from monthly to annual payments after I’ve started my cover?If you would like to change from a monthly renewing policy to an annual renewing policy you will need to set up a new quote from your dashboard and select the “pay annually” option before continuing to fill out your property details again. Unfortunately we cannot switch a monthly policy to an annual policy any other way at this time. After you have set up a new annual policy we can cancel your initial monthly policy and issue you a refund of any overpaid premium.
Can I pay with American Express?No, we do not currently have an option for payment via American Express cards
Do you charge a credit card fee?No, we do not.
What if I need to change the card used for my monthly payments?This can be changed at anytime via your initio dashboard, please login, proceed to ‘account’ in the top right hand corner and then select ‘credit card’ to update.
My monthly payment didn’t go through this month, how can I fix it?You can arrange for the payment to be re-tried by either contacting our support team, or updating your credit card details in your initio dashboard. When card details are updated, the system will automatically try to process any outstanding payment—even if you re-enter the same card details.
Account2Account Transfer (annual policies only)
An additional option is provided for annual policies where you can use your bank account login details to load an automatic transfer payment from your selected account using the Account2Account service. “Account2Account” is an online facility which processes payments directly from your account in real time, it creates a one-off online payment utilising the online banking system. The payment is set up via our policy purchase system, please choose the Account2Account option when you come to the initio payment screen.
To use Account2Account, your banking account must be with one of the following banks:
ANZ
ASB
BNZ
Kiwibank
The Co-operative Bank
TSB
Westpac
For a demo and/or further information of how Account2Account transfers work, please see here.
Online EFTPOS (annual policies only)
Online EFTPOS is a modern payment method that lets you make online purchases through your bank’s mobile app. This secure payment solution connects directly to your bank account without requiring you to share sensitive banking details. Currently available to ANZ, ASB, BNZ, The Co-operative Bank and Westpac customers.
How to make a payment
Choose your bank from the payment options
Enter your mobile phone number
Open your bank’s app and approve the payment notification
Key benefits
Direct account-to-account transfers
No need to share banking credentials
Secure payment process
Simple smartphone-based payments
Frequently asked questions
How secure is Online EFTPOS?
Online EFTPOS is one of the most secure payment methods available today. This is because it doesn’t ask you to enter your bank or payment details directly. Instead, you approve each payment through your bank’s app, adding an extra layer of security.
What is the maximum purchase limit for Online EFTPOS?
The purchase limit for Online EFTPOS depends on your bank:
ANZ: $5,000 per transaction
ASB: $5,000 per day
BNZ: $12,000 per day
Westpac: $5,000 per day (unless otherwise agreed with Westpac)
Co-operative Bank: Flexible daily limit, based on your individual agreement with the bank
How long do I have to approve my payment?
You have 4 to 7 minutes from the time the payment request is sent to approve the transaction in your bank app.
Annual Payment Transaction Not Working?
It can be frustrating when your insurance payment doesn’t go through, especially if there’s money in your account. In most cases, the decline is coming from the bank rather than your insurance provider.
Below are the most common reasons this happens, and what you can do to fix it.
Two-factor authentication (2FA) approval required
Some banks require extra confirmation for payments now, especially larger or less frequent ones like an annual insurance premium. This is known as two-factor authentication, or 2FA. Instead of automatically approving the payment, your bank may pause it until you confirm it’s really you.
How this usually works:
Your bank sends a push notification to your banking app, or
You receive a one-time code by text, or
You’re asked to approve the payment in-app or via internet banking
If the approval step is missed or times out, the payment may be declined. What you can do:
Keep your phone nearby when making the payment
Check your banking app and text messages for an approval request
Make sure your bank has your correct mobile number
If your bank uses an App, open the app and approve the transaction, then try the payment again
If you don’t see any approval request, contact your bank to check whether 2FA is required for this type of payment and whether anything is blocking it. Once the authentication step is completed, payments usually go through without issue.
Insufficient available funds – Even if your account balance looks fine, some of that money may be unavailable. This can happen if:
There are pending transactions
Your account has a hold or overdraft limit
Funds are reserved for another payment
What you can do:
Check your available balance, not just your total balance
Wait for pending transactions to clear
Transfer funds from another account if needed
Daily transaction or payment limits – Banks often place limits on how much can be paid in one transaction or within a day. What you can do:
Check your daily payment or card limit in your banking app
Temporarily increase the limit
Contact your bank for help
Card security or fraud checks – Banks monitor card payments closely. Larger or less common payments, like an annual premium, can sometimes trigger a security block your block. This is one of their methods to protect you from scams. What you can do:
Check for a notification from your bank
Confirm the transaction is legitimate in your banking app
Call your bank to remove the block
Try the payment again once cleared
Expired or replaced card details – If your card has recently expired, been replaced, or reissued, the old details may no longer work. What you can do:
Update your card details in your online dashboard
Use your new card number and expiry date
Make sure the name and CVV match exactly
Online or international payment restrictions – Some banks restrict online payments or certain merchant types by default. What you can do:
Check that online payments are enabled on your card
Ask your bank if any merchant restrictions apply
Enable the payment type if it has been turned off
Temporary bank outages or system issues – Sometimes the issue is simply a temporary banking problem. What you can do:
Wait a short time and try again
Check your bank’s service status page
Try a different payment method if available
What to do if your payment is declined
If your annual premium payment doesn’t go through:
Check your bank account and card details first
Look for messages from your bank
Contact your bank if the reason isn’t clear
Once resolved, log back in and retry the payment
If you are still having issues please give our team a call to assist.
If you’re ever unsure, our team can help guide you on next steps and make sure your cover stays on track. Insurance payments should be simple, and most declines are quick to fix once you know the cause.
Want to switch between Monthly and Annual Payment Options?
For details on how to switch between monthly and annual payments, check out our article on ‘Switching Payment Frequency‘. For details on how to renew an existing annual initio policy and where to find that payment information, please check our this support article “How to renew your annual policy with initio”
Direct Debit?
Please note, initio does NOT currently offer direct debit as a payment option.
Flood risk is becoming an increasingly significant issue for property owners in New Zealand due to the growing frequency and severity of weather events. This risk often translates into financial hardship due to the damage caused and the potential for increased insurance premiums. Certain areas, like Edgecumbe and Westport, for example, face heightened challenges, with insurance becoming harder to secure.
To help you navigate these challenges, this guide combines insights on flood risk assessment and the implications of living in flood zones, using advanced tools like Risk Management Solutions (RMS) and council-provided data.
Measuring flood risk
Flood risk is determined by two key factors:
Frequency: How often floods are likely to occur.
Severity: The potential impact and damage caused by those floods.
Initio is committed to providing transparent and accurate information to help you protect your property.
At initio, we use Risk Management Solutions (RMS) data to assess properties’ flood risk. RMS is a global leader in risk modelling and analytics. They use advanced technologies, scientific data, and sophisticated modelling techniques to assess natural disaster risks, including flooding. RMS determines flood layers by analysing:
Historical flood data
Topographical information (land elevation and shapes)
River systems and water flow patterns
Rainfall data and climate patterns
Soil types and ground absorption rates
Man-made structures like dams and levees
When you get a quote, and the property you’re quoting is in a flood risk zone according to the RMS modeling, we will show you a message detailing what risk has been found. These are as follows:
“Flood Risk – RMS Flood 50 Year Return”: There’s a 1 in 50 chance of a significant flood in any year, or a 2% chance of a flood occurring in any year.
“Flood Risk – RMS Flood 30 Year Return”: This indicates a 1 in 30 chance of significant flooding each year, or a 3.3% chance of a flood occurring in any year.
These year values represent the probability for the scale of flooding that needs to occur for the water to reach this property. So when you hear about “one in a hundred year flood”, or “one in 50 year floods”, that is what those flood risks mean; if a “one in 30 year flood” occurs, water is likely to reach properties that fall in the RMS 30 Year flood model.
The risk information don’t mean that a flood will only happen once in 100, 50, or 30 years. As we saw with the Auckland flood events from 2023, multiple flood events can occur in quick succession.Ultimately these are modeled risks, and real world outcomes may vary, but they are a way to better predict flood risks and keep insurance accessible for New Zealand.
However, it’s crucial to understand that frequency doesn’t always correlate directly with severity. Flood severity refers to how damaging a flood might be, regardless of frequency. For instance, a less frequent flood might cause significant damage if it is severe, while a more frequent flood might have a lower impact.
When you get a quote online, if there is a flood risk associated with the address you have provided we will display the risk found on the RMS dataset based on the location of the property.
This information helps determine whether we can offer immediate insurance cover or if further review is needed. However, it’s important to note that these are probabilistic models and real-world outcomes may differ.
Understanding flood severity
While frequency tells us how often flooding might occur, severity helps us understand the potential impact on your specific property. We assess severity by looking at several key factors that combine to create a complete picture of risk:
Predicted flood water depths (ranging from shallow surface flooding to depths of over 3 meters)
The percentage of land potentially affected
Your building’s position on the property
Natural drainage patterns
Existing flood protection measures
The building’s design and construction
The interaction between these factors can significantly influence the actual risk to your property. Here are some examples:
A property might be in a 30-year flood zone with a predicted 2.5-meter water depth, but if this only affects a small corner of the section where no buildings stand, the practical risk might be manageable.
Conversely, a property in a 50-year zone with a lower 0.5-meter predicted depth could present higher risks if the water would cover most of the land and directly impact the building.
A property with moderate flood frequency but high predicted water depths (3+ meters) covering significant building areas would typically represent a more serious risk which may be outside of our capacity to insure.
Our website continually evolves as data and modeling capabilities improve. The rules we use to evaluate properties are regularly updated to reflect the latest RMS data and our growing understanding of flood risks in New Zealand. This means that assessments can change over time as we refine our approach and incorporate new information about flood risks and their potential impacts.
At Initio, we use this comprehensive understanding of both frequency and severity to make balanced insurance decisions. Our approach is designed to be practical – we can typically provide coverage even when some flood risk is present, however not all properties are able to be insured by Initio, depending on the risks involved.
Understanding Flood Zones and Mapping Tools
In addition to RMS data, tools like the Searise website, local council hazard maps, the property’s history and your own LIM report provide valuable insights into flood risks. These tools help both insurers and property owners understand sea-level rise, vertical land movement, and local flood hazards. With these resources, you can view your property’s flood risk, explore hazards like river overflow and storm surges, and prepare accordingly.
Searise example
Auckland Council flood mapping example
Local councils also play a crucial role in managing flood risk by improving infrastructure, such as drainage systems, which are increasingly under pressure. Ensuring that these systems are up to standard is essential in reducing flood risks for homeowners.
Why might my council’s flood risk assessment differ from RMS data?
It’s possible that your local council’s flood risk assessment may differ from the RMS data we use. This can happen for several reasons:
Updated information: RMS may have access to more recent data or use more advanced modeling techniques.
Different focus: Council assessments might focus on specific local concerns, while RMS provides a standardized national assessment.
Varying methodologies: The methods used to assess flood risk can differ between organizations.
Broader considerations: RMS data may take into account factors beyond what local councils typically consider.
If you have concerns about discrepancies between council and RMS assessments, we encourage you to contact us for further clarification.
How Does Flood Risk Impact Insurance?
Suppose your property falls within a high-risk flood zone. In that case, initio uses all information available to help decide whether immediate insurance cover can be offered or if custom terms would be required.
While insurance can help protect against flood-related damage, it’s important to manage the risks proactively. This might involve flood-proofing your property, improving drainage, or making structural changes to better withstand flood events.
Flood risk can vary across properties depending on:
Specific property location within a flood zone.
Local topography and elevation.
Drainage systems and recent land developments.
What If I’ve Reduced My Flood Risk?
If you’ve taken steps to reduce your property’s flood risk, such as installing barriers or improving drainage, let us know. These improvements would be considered when assessing your property’s flood risk for insurance purposes.
Summary
With the growing threat of severe weather events, understanding flood risk and using available resources is essential for property owners in New Zealand. By leveraging data from tools like RMS and local flood maps, you can make informed decisions, better protect your property, and ensure you are adequately insured.
For more information or help understanding your property’s flood risk, reach out to our support team at initio. We’re here to provide the transparency and guidance you need to manage these risks effectively.
Remember, understanding your flood risk is the first step in protecting your property. Stay informed and prepared!
This report, and the analyses, catastrophe modelling results and predictions contained herein (“Information”), are based on data provided by Initio Limited, and compiled using proprietary computer risk assessment technology of Moody’s Analytics, Inc. and its affiliates (“Moody’s”). This Information is a single copy, copyright protected work of Moody’s that contains confidential and proprietary information of Moody’s. As with any model of physical systems, particularly those with low frequencies of occurrence and potentially high severity outcomes, the actual losses from catastrophic events may differ from the results of simulation analyses. Furthermore, the accuracy of predictions depends largely on the accuracy and quality of the data used by Initio Limited. The Information is owned by Client or provided under license to Initio Limited and is either Client’s or Moody’s’ proprietary and confidential information and may not be shared with any third party without the prior written consent of both Initio Limited and Moody’s. Furthermore, this Information may only be used by the recipient in connection with, as applicable, (i) Initio Limited’s imminent placement of insurance or reinsurance; or (ii) the recipient’s 3 regulatory activities in relation to Initio Limited; and always for internal purposes only and for no other purpose, and may not be used under any circumstances in the development or calibration of any product or service offering that competes with Moody’s. You are not authorized to use, copy, modify, disclose, and/or distribute this Information in whole or in part in any form, except as expressly and specifically permitted under a written agreement signed by Moody’s. Any unauthorized use, copying, modification, disclosure, or distribution of this Information will constitute an infringement of Moody’s intellectual property and your agreement to pay list price for the use of the product or application associated with this Information, in addition to any applicable penalties or damages or other remedies available under applicable law. The recipient of this Information is further advised that Moody’s is not engaged in the insurance, reinsurance, or related industries, and that the Information provided is not intended to constitute professional advice. Moody’s including its parent, subsidiary and other affiliated companies are all beneficiaries of this disclaimer. MOODY’S (AND ITS PARENT, SUBSIDIARY AND OTHER AFFILIATED COMPANIES) SPECIFICALLY DISCLAIMS ANY AND ALL RESPONSIBILITIES, OBLIGATIONS AND LIABILITY WITH RESPECT TO ANY DECISIONS OR ADVICE MADE OR GIVEN AS A RESULT OF THE INFORMATION OR USE THEREOF, INCLUDING ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL MOODY’S (OR ITS PARENT, SUBSIDIARY, OR OTHER AFFILIATED COMPANIES) BE LIABLE FOR DIRECT, INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES WITH RESPECT TO ANY DECISIONS OR ADVICE MADE OR GIVEN AS A RESULT OF THE CONTENTS OF THIS INFORMATION OR USE THEREOF.
Insurance premiums can be a complex subject, influenced by a variety of factors. Whether it’s your personal driving record or larger market trends, it’s essential to understand how these elements may affect your cost of insurance, especially in New Zealand’s dynamic environment.
General factors impacting premiums
Weather events
New Zealand’s weather is becoming more erratic, with significant impacts on vehicles. For instance, North Island floods in 2023 led to a high number of vehicles being written off due to water damage.
Advances in technology & materials
Newer cars come with advanced technology like backup cameras and sensors. The materials used, such as aluminium, although beneficial for fuel efficiency and safety, are harder and more costly to repair.
Inflation & economic factors
With New Zealand’s inflation at a 32-year high and increasing labour costs, the overall cost of vehicle repairs is rising.
Claims cost inflation
Driven by the increasing frequency and costs of claims, the average cost for vehicle parts has surged by 8-10% over the past year. Labour costs have also seen an increase, now ranging between $115-$160 per hour.
Insurer’s data
Between September 2022 and February 2023, our underwriter, IAG NZ, recorded a rise in claims, especially due to weather events like North Island floods and Cyclone Gabrielle. The Insurance Council New Zealand reported that Cyclone Gabrielle had already resulted in costs of around $1.5 billion*
Personal factors impacting premiums
Location & past claims
Where you live, your past vehicle claims, the sum insured, and the type of car you drive all contribute to your premium rate.
Changes to cover
If you alter the agreed value, excess, main driver, or permit drivers under 25 years to use the vehicle, this will affect the cost.
Driver grades
If the main driver incurs an ‘at-fault’ claim, this changes the driver grade, affecting the premium. Learn more about driver grades here.
Government levies
A segment of your car insurance goes towards the Fire & Emergency NZ (FENZ) levy. This rate will increase to $10.96 (incl GST) per vehicle on 1 July 2024.
Why premiums may change
The cost you pay for insurance needs to mirror what it costs your insurance provider to offer the cover. With the various contributing factors outlined above, it’s understandable that premiums may undergo adjustments. Rates usually change annually, aligned with your policy’s anniversary.
Understanding these factors will better prepare you for any changes to your insurance premiums and equip you with the knowledge to make informed choices.
Diving into the next part of our series, we’re tackling how to stay one step ahead of Mother Nature’s surprises. As the seasons shift, weather patterns can change rapidly, bringing unexpected conditions right to our doorsteps. Lately, we’ve noticed an uptick in flooding enquiries from our community, highlighting the importance of being alert. We’re all for optimism, but being ready for any weather is just common sense. So, let’s pack our emergency kits and make sure we’re prepared for whatever comes our way. Here’s a quick guide to keeping safe, protecting your property, and getting through any weather challenge.
Make sure you’re ready for Mother Nature’s curveballs
Regardless of the type of natural disaster that might take place, the drill’s pretty much the same. So, let’s tuck this know-how into our mental back pocket – because, let’s face it, it’s always good to have a plan before the weather decides to crash our party. It’s been just over a year since we witnessed the severe impact of the consecutive flooding and storms of early 2023. They were a soggy reminder that while we’d love a year filled with nothing but sunshine and gentle breezes, hoping for the best without preparing for the rest is like wearing socks with sandals – a risky fashion statement in the world of weather.
While we remain hopeful for a calmer year ahead, we wouldn’t be in the insurance game if we didn’t value cautious optimism and thorough preparation for unforeseen events.
Make sure your emergency kit isn’t just a collection of last year’s Halloween candy and a flashlight with dead batteries. The following simple steps can lessen the impact of future major events and help make your recovery just that little bit smoother:
Stay Safe and Informed
Listen to updates from official channels like Civil Defence and emergency services. Keeping you, your family, and your fur babies out of harm’s way is priority number one.
Gather essential items like your emergency bag and a lockbox with important documents.
Secure and Document
If your home is safe, make temporary repairs to secure it. Take photos of any damage for insurance purposes.
Move valuable items to a safe place if possible. Your insurance might cover the cost of storing these items.
Communicate and Manage
If your home is damaged but livable, contact your insurance provider for advice on urgent repairs. Keep all documentation and receipts related to the damage and repairs.
Be aware of repair scams. If the damage is serious or your home is not safe, get in touch with your insurance provider for prioritised support.
Cleanup and Claims
Begin cleanup for flood damage by removing affected items, and document everything with a list and photos. Keep damaged items for assessment.
Arrange for emergency repairs to prevent further damage, knowing these costs can be covered by your insurance claim.
This guide ensures you know the steps to take for safety, protecting your property, and efficiently handling insurance claims during emergencies.
Christmas is the busiest time of year …. for burglars. House insurance is just one part of managing your house and contents risk. Heres a guide on protecting your property.
It’s coming into that time of year where we like to take a load off – relax for a couple of weeks, put the feet up at the bach, or even head off overseas – but it’s also the time of year when burglars tend to be more active. Leaving houses empty for periods of time can be risky in several ways, and among other factors, result in an uptick of property insurance claims. We’ve all seen Home Alone!
Holiday homes are particularly vulnerable as they are often left unoccupied for extended periods of time, but even our own homes need to stay secure and damage-free over the silly season.
Burglary prevention is equally important for holiday homeowners, landlords, and people with a single main residence. Importantly, burglary isn’t only about having your contents stolen, but also the fact that thieves can cause significant damage to other possessions and the property itself whilst trying to gain access.
Property insurance cover is designed to protect you if the worst should happen, but as a property owner there are several steps you can take to avoid having to deal with the heartache and distress of someone illegally entering your property, and ultimately having to make a claim on your policy.
Prevent opportunistic burglars from targeting your property by:
Keeping all valuables out of sight. Gifts under the tree are tempting for thieves so make sure they, and other valuables, can’t be seen from the outside the home. Also be careful when disposing of any tell-tale packaging
Checking window joinery, and promptly replacing or repairing any loose latches
Installing security stays on windows
Fitting deadlocks or deadbolts to all external doors, especially older doors and ranch sliders which can be more easily broken into
Installing a burglar alarm and advertising the presence of an alarm
Installing exterior sensor lights, and checking any existing lights are working correctly
If possible, make it difficult for someone to break into your home. Trim trees and shrubs so there are no places for burglars to hide and move wheelie bins and other large objects away from fences, ledges and drop-offs wherever possible. Lock your shed and put away any tools, to remove the temptation of them being used to aid access.
Something else to consider is not advertising that you are away: keep your lawns mowed, gardens tidy, the mailbox clear and avoid leaving messages on social networking sites and answering machines with dates and other specific details of your absence. Let your neighbours know if you’re going to be away, give them your contact phone number, and have if you a good relationship with your neighbour – ask them to clear your mail, or park in your driveway to keep up the ruse.
Good security makes people feel safe; it also has the added benefit of retaining good and long-term tenants – and for holiday homes, a reputation for a safe and secure property.
Gradual water damage claims are not always straightforward.
Home insurance protects you from sudden damage like a burst water pipe. But gradual damage over time generally isn’t covered. There’s an exception to this. Most house insurance policies in New Zealand have a extension for Hidden Gradual Water Damage.
However, there’s certain conditions that need to be met to make a claim for this cover.
When can I make a Gradual Water Damage Claim?
Damage needs to be hidden, and caused by an internal water pipe or tank.
Essentially the water damage or leak needs to be hidden from the naked eye. If the leak isn’t hidden there won’t be cover as the damage could have been prevented.
Cover is specific. The source of the water damage needs to come from a tank, hot water cylinder or water/waste pipe.
Examples of Hidden Gradual Damage Claims:
Sink waste pipe behind kitchen bench top was leaking which damaged and moulded below cabinets.
Shower’s pressure pipe behind wall was leaking and slowly rotted wall lining and floorboards.
Broken valve on hot water cylinder leaks water down the inside wall and swells the wooden flooring.
How much cover do I get?
Most house insurance policies have cover for this but with a limit. The limit can range from $1,000 to $5,000 and your excess is taken from the limit.
The conditions are narrow. Any damage from a leak you can see, or one that doesn’t come from a pipe or tank is unlikely to be covered.
Examples that won’t meet the conditions for a Hidden Gradual Damage Claim:
Leaking window frame causes rain to leak onto the window sill and rot.
Water leaking onto the floor from a faulty washing machine (unless the leak was from a hidden pipe).
Damage to the carpet caused by moisture from a potted plant.
What if I’m not sure what type of damage it is?
It’s hard to know exactly how the damage has occurred or where it’s coming from. If you’re not sure we recommend getting a repair quote from a tradesperson ask them to include their opinion on how the damage happened.
Is the leaking pipe itself covered?
Your insurance cover will protect you for the damage that results from the leak.
The cost to fix the leaking pipe itself; or the actual cause of damage won’t be covered. Insurance will pay to repair the resultant damage, but fixing the faulty pipe or equipment will be your responsibility as a homeowner. In most cases this cost is a small part of the total repair costs.
A tenant discovers the kitchen floor is spongy under the lino where the water pipe for the cold tap had been slowly dripping. Over time the kitchen cabinet swelled causing the particleboard to deteriorate. The landlord gets a builder to quote the cabinet repairs and a plumber to fix the leaking pipe.
Item
Amount
Claimable?
Sink Cabinet Panels
$866
Yes
Fixing, Screws, Glues
$63
Yes
Particle Board Sheet
$110
Yes
Builder’s Labour
$590
Yes
Relaying of Lino
$783
Yes
Piping Replacement
$25
Not included in cover
Plumber’s Labour
$100
Not included in cover
Total Repair Costs
$2,500
Less costs not claimable
$125
Total Claimable Costs
$2,375
Your standard policy excess will then be taken out of your payout.
It can be common to claim for fallen trees and branches after a severe weather event, for the damage caused to houses and guttering, fences, cars and neighbouring properties.
In general, a home insurance policy doesn’t cover trees themselves; but you may be covered if a fallen tree has damaged your insured structures (cars, buildings, fences, special/recreational features) within the boundaries of your home. In these situations, we’ll cover the costs to remove the sections of the tree required to enable safe repairs – and you’ll need to arrange the tree’s disposal.
Some common examples;
1. A tree has fallen and damaged your car or living room
If the fallen tree has damaged your insured property, we’ll cover the cost of repairing the damage as part of your claim, including removing specific sections of the tree required to enable safe repairs. The insured is responsible for arranging and paying for the tree’s disposal.
2. A tree has fallen over on the lawn or driveway
If the tree has not caused damage, cover for the cost of cutting up or disposing of the tree does not apply.
3. A tree has partly fallen against my house, but it hasn’t caused any damage – am I covered?
If there is no damage to the house, then the cost of removing the tree is not covered. You should take reasonable steps to remove the tree to protect your property and prevent future damage. If you discover damage after removing the tree, then please let us know.
4. My tree has fallen onto my neighbour’s property – am I liable?
A homeowner will generally not be held liable for damage that their trees cause to other people’s property in a severe weather event. However, if it can be proven that they were negligent in not removing rotten trees or had ignored requests for removal, then they may be held liable.
5. Tree roots have grown and caused the underground pipes to block – is the removal of tree roots covered?
Our automatic additional benefit ‘water or sewage pipe blockage’, will pay a limited annual amount toward unblocking pipes. But, the cost to remove the tree roots is not covered.
Tips for tree maintenance
Got a tree or two around your property? Taking care of them is one way to reduce the risks of damage when bad weather strikes. Here’s the lowdown on how you can keep them in tip-top shape:
Give ’em a good look: Assess the trees around your place before and after severe weather. Spot anything weakened or damaged? They might need a trim or even removal.
Chat with the Council: Check with your local council about the rules for chopping, pruning, or trimming a tree on your, your neighbour’s, or council land. And don’t forget to see if the tree has any special protection.
Spotted something? Speak up! If you notice a problem with a tree on council property, don’t be shy. Report it to your council pronto.
Know your limits: Trimming a branch is one thing; taking on a big project that could damage a house or hurt someone is another. For the bigger stuff, it might be best to bring in a professional arborist.
Think before you plant: Before you get that tree in the ground, think about how it’ll grow. Steer clear of planting large-growing trees too close to your house or other property. Know how your trees will grow above and below the ground before you plant them, and avoid placing ones that will grow large and too close to your house and other property.
For more information, please refer to your full policy
Life can be full of surprises. This year, our clients’ experiences range from the utterly unexpected to the charmingly chaotic. We understand the need for comprehensive property insurance that covers these unforeseen events.
This year, initio has processed a record number of claims, almost doubling from last year. Our payouts have increased significantly by over 230%, a substantial rise compared to the 45% increase from 2021. The major storms and flooding we saw at the beginning of the year (along with other significant events) meant more people needed help from their insurance provider, which in turn pushed up the cost of insurance premiums. The intensity and frequency of these events have been steadily increasing, with 2023 being off the chart, as shown in the graph below:
It’s worth noting that the above figures are across all New Zealand insurers and were calculated in August 2023, these numbers will be even higher now.
The growing number of Kiwi homeowners choosing initio has also influenced these increased numbers. We’re delighted that many have selected us as their insurance provider, indicating our ongoing growth and success. A heartfelt thank you to those who have recently joined us and to our loyal customers who have continued with us this year.
As we wrap up the year, let’s explore the lighter side of insurance with a look at some of the most unique claim trends we’ve encountered in 2023:
Nature is wild
Nature can be unpredictable, and it certainly was for a few of our clients this year. In one instance, a drone was unexpectedly taken out by a seagull, while in another, a bird decided to make a home in a client’s chimney, causing a mess and eventually meeting an untimely end. Nature’s surprises can sometimes be costly! Domesticated pets also caused their fair share of claims this year, the majority of which were caused by them not making it outside in time to use the bathroom. These types of claims alone caused thousands of dollars worth of damage.
The artistic and the audacious: Children at play
Children bring joy and, occasionally, a bit of chaos. From a child’s artistic scribblings using foundation makeup that unfortunately left lasting marks on furniture and décor, to the regrettable incident where a backpack met its fate under the blades of a lawnmower, and those inventive yet ill-fated attempts at cleaning up spills with a vacuum cleaner, the innocence and spontaneity of children can sometimes come at a cost. Not to mention the numerous TV and tech accidents involving toy hammers, building blocks and balls, all leading to thousands of dollars of damage.
Another client unexpectedly went into labour while at home, an experience filled with surprise and natural wonder. But when her water broke, it soaked the carpet in the process.
CHILDREN VS HOUSEHOLD ITEMS 2023:
Tesla tales: The perils of parking
This year, our Tesla owners have navigated various challenges, notably a rise in claims for windscreen damage and parking incidents. Even the most advanced vehicles aren’t immune to the quirks of daily life. One advantage of owning a Tesla is the reduced petrol costs, coupled with comprehensive camera coverage. This feature ensures most incidents are recorded, providing valuable evidence. It’s important to remember if you accidentally collide with a parked Tesla, chances are, it’s on camera.
Candles and pianos don’t mix
Coincidently we saw two cases of candle wax melting onto pianos this year, making them unplayable. These two incidents alone cost thousands of dollars of damage (pianos are expensive!). While they might create a beautiful ambience, the takeaway lesson would be perhaps don’t have lit candles on top of your piano.
At initio, we’ve seen it all, from feathered fiascos to technology tragedies. These stories showcase the unpredictable nature of life and the essential role of comprehensive property insurance. Whether it’s a mischievous child or a parked Tesla, we’re here to ensure that when life happens, you’re covered. Discover the ease of getting a quote and the simplicity of insuring with initio for yourself.
Insurance premiums don’t increase simply so the insurer can make more money – they increase so the insurer can afford to pay claims and stay in business. These are just some of the reasons why initio has seen premium increases in recent years.
WHERE DOES MY PREMIUM GO?
In this example we have used a typical house insurance premium of $997.28 inc GST to depict the actual levies and taxes paid, and the approximate distribution of the remainder of the premium.
METHAMPHETAMINE
IAG pays out $14 million in methamphetamine claims on residential properties each year. IAG receives up to 80 new Methamphetamine claims each month. The average decontamination claims costs $25,000. With detailed testing ranging from $3,000 to $10,000, and house decontamination costing between $2,000 and $50,000.
NATURAL DISASTERS AND WEATHER EVENTS
2 Days of wild weather in March 2016 cost insurers $30 million, with 687 House and Contents Claims, costing over $2 million.
12 months later in March 2017 a months’ worth of rain fell in 24 hours that costing insurers another $42 million. This time the effect was greater on homes with 5824 House and Contents Claims that costing $24.5 million.
GOVERNMENT LEVIES
Government imposed Fire Service Levies increased from 1 July. If you are renewing cover after this date the additional cost to you is $41.40. The annual cost of Fire Service Levies is $146.28.
Government imposed Earthquake Commission Levies are increasing from 1 November. If you are starting your cover on or after this date the cost of you insurance will increase by $69. The annual cost of Earthquake Commission Levies is $276.00.
EARTHQUAKES AND REINSURANCE
Before the Canterbury 2011 earthquakes, reinsurance costs made up about 7% of total cost of house insurance, now that amount has tripled to about 20%. The risks associated with natural hazards were grossly underestimated before the 2011 quakes.
The Natural Disaster Fund has paid out $9.5 Billion so far in claims to people affected by the Canterbury Earthquakes. It is expected another $550 Million will be paid out for claims relating to the 2016 Kaikoura Earthquake.
INCREASED CLAIM COSTS
The Health and Safety at Work Act 2015 has meant increased compliance costs for all building repairs and more on site safety requirements. For example, a single tradesperson is no longer able to access a roof via a ladder; now there must be two tradespeople on every job, and they must use a scaffold.
In April 2016, the Asbestos Regulations came into force, as a result, the cost of removing Asbestos Containing Material has increased significantly. For example, a straightforward textured ceiling removal that may have cost $1,000 in 2015 would now cost over $5,000 to remove.
INCREASES IN BUILDING COSTS
Strong demand and not enough supply has seen the average cost of building a new home in New Zealand’s four largest cities rise by 21.09 percent since the previous peak, (and last building boom), in 2007.
There is more to building cost inflation than simply labour and material cost escalation. Other significant cost increases can be found in health and safety compliance and higher levels of specifications being imposed such as higher seismic loads.
In this edition of the Smart Moves series, we tackle a question some seasoned investors eventually ask: should I self-insure? Graeme Fowler shares why, even with decades of experience, it’s not a gamble he’d take.
Have you ever seriously considered not insuring?
“Not once. Even if I owned 500 houses outright, I wouldn’t do it. The risk is just too big.”
Graeme says the idea of not insuring, or ‘self-insuring’ – where you skip traditional insurance and rely on your own reserves to cover any potential loss – might sound appealing to confident investors. But in reality, it’s a dangerous bet.
From initio: Some landlords toy with self-insurance after years of no claims. But it only takes one event – a fire, a major flood, an earthquake – to wipe out years of progress. Comprehensive cover isn’t just peace of mind, it’s smart protection for your property and future income.
Why do you think some landlords consider it?
“Usually because they haven’t had a big claim yet. It gives a false sense of security. You think, ‘I’ve never had to claim – why am I still paying?’ But the day you need it, you’ll be glad you did.”
Graeme compares it to health insurance – you don’t buy it hoping to use it, but you definitely want it when things go wrong.
What kinds of events make insurance non-negotiable?
“Fires are the big ones for me. I’ve had a few over the years, and they’re expensive – repairs, temporary accommodation, loss of rent. Without insurance, I would’ve taken a massive hit.”
He also points out that natural disasters like floods and earthquakes are unpredictable and can affect multiple properties at once – something no reserve fund can reliably cover.
From initio: Our policies cover comprehensive replacement for accidental fire, storm, flood, and more. And with loss of rent included when a claim makes the home uninhabitable, your income is protected too.
But it’s more than that, insurance is what steps in when the stakes are highest. A fire or natural disaster doesn’t just damage property – it disrupts lives. You might need to relocate tenants, pause income, and navigate months of rebuilds or repairs. That’s not something most landlords can self-fund, especially if multiple properties are impacted at once.
That’s where we come in. The purpose of insurance is to absorb those risks on your behalf. You pay a premium so that when the worst happens, you’re not left scrambling. You’re backed by a provider that’s prepared to step in with cover, support, and real financial backing when you need it most.
And because disasters don’t give you notice, our policies are designed to respond fast. Claims can be lodged online in minutes, and we’ve built a digital-first platform to speed things up – so you’re not stuck waiting around when time matters most.
What would you say to investors who feel overinsured?
“You’re not. You’re covered. That’s a good thing.”
Graeme says insurance isn’t about trying to beat the system – it’s about protecting what you’ve built. “I’d rather have cover and never use it than need it and not have it.”
From initio: With the right cover in place, you’re not throwing money away – you’re protecting your investments from the risks you can’t predict or prevent.
Coming up next in the Smart Moves Series:
Looking ahead: what does the future of insurance for landlords really look like?
Want the quick version?
We’ve pulled together the key takeaways from this series into our Landlord Insurance Fundamentals Guide—including a bite-sized version of our interview with Graeme Fowler. It’s a great place to start if you’re after a practical overview of insurance essentials for NZ landlords. Read it here
If you have home and contents insurance with initio and your home suffers water damage, here’s what you need to do:
Get the water turned off or at least isolate the leak to stop water flowing to it. You might need to get a plumber to do this for you.
Make sure the house is safe. If the wiring could be wet, turn the power off and get an electrician to check it.
Get the house dry quickly. Call a professional drying company such as ChemDry or JAE and get them to install some commercial dryers and blowers as soon as possible, they’ll also know if carpets need to be uplifted, walls opened and insulation removed etc.
Log in to your dashboard on the initio website and click on Make a Claim, fill in the form and send us any photos you’ve taken. We’ll email or call you within 1 business day.
Black water alert
As a precaution, where homes have been contaminated by black water (sewage or storm water), extra care must be taken. See our guidelines on black water and cleaning up after a flood.
FAQs
Will Initio send an assessor?
An assessor won’t be able to do anything until the property is dry. If there is significant damage to your home afterwards, then we can get an assessor to go to site.
Can I use any plumber, electrician, drying company, or do Initio have approved companies that I must use?
You can use any repairer or supplier you like. So long as their costs are reasonable and you are happy with the standard of work, then we’re happy. Please be aware that in some instances the cost of the tradesman’s work may not be covered under your policy, that may still need to be determined.
What is my excess?
This amount is chosen by you when you buy the insurance, if you can’t remember, just check your policy schedule (you’ll find this document on your dashboard).
Our plumber has told us that the leak was caused by a rusted nail in a pipe in the wall, it’s been slowly leaking for the past few weeks but we’ve only just noticed it. Is this covered?
Because the damage has been happening over a long period of time, we need to claim under the ‘Hidden Gradual Damage’ benefit of the insurance policy. This benefit covers leaks stemming from internal water pipes and tanks that are hidden from site and have been leaking over a long period of time, the cover is capped at $3,000 and your excess will be deducted from that limit.
“All claims are different and they are assessed on their own merits and facts. The above does not imply a guaranteed approach to all such claims”
An initio customer returned from a holiday overseas to discover a sudden burst pipe had resulted in almost $8,500 worth of damage. Initio paid the claim efficiently, straight to the customer’s bank account.
Accidental damage is irksome, someone or something has damaged your property and it needs to be made right. Don’t worry, that’s what you’ve got home and contents insurance for and we’re here to help.
IMPORTANT: If your house is unsecured, unsafe or vulnerable to more damage, get a professional to make the house safe and we can work through the costs together later.
If you think your claim will be under $5,000, here’s what you need to do:
Take photos of the damage.
Get a quote to repair any damage.
Log in your dashboard on the initio website and click on ‘Make a Claim’. Fill in the form and attach your photos and quotes.
We’ll email or call you within one business day.
If the damage is severe, we might need an assessor’s opinion, here’s what you need to do:
Log in to your dashboard on the initio website and click on ‘Make a Claim’. Fill in the form and attach any photos you’ve taken.
We’ll email or call you within one business day.
FAQ’s:
Can I use my own repairer or do initio have approved repairers that I must use?
You can use any repairer you like, as long as their costs are reasonable and you’re happy with the standard of work, then we’re happy.
Who will pay my excess: me, or the person who damaged my house?
This is case-by-case. If a tenant caused the damage accidentally, then we cannot hold them responsible. However, if a neighbour accidentally drives through your fence, then we’ll probably be able to get the money back from their insurance company and your excess will be reimbursed to you.
“All claims are different and they are assessed on their own merits and facts. The above does not imply a guaranteed approach to all such claims”
A stranger accidentally reversed their car into this garage door, damaging not only the door, but block work too. Initio worked with the property manager and repairer to get the door replaced and brickwork repaired efficiently and with as little fuss as possible to the tenants. Best of all, Initio didn’t charge an excess and recovered the costs from the driver.
IMPORTANT: If your house is unsecure, unsafe or vulnerable to more damage, get a professional to make the house livable and we’ll work through the costs together later.
After ensuring the house is secure and everyone is safe, here’s what to do if you have home and contents insurance with Initio:
Take a photo of the damage.
Complete any urgent repairs ie glazing, tree removal etc
Get a quote to repair the remaining damage.
Log in to your dashboard on the initio website and click on make a claim
Fill in the form and send us the photo and quote.
We’ll email or call you within 1 business day.
Black water alert
As a precaution, homes that have been inundated with flood waters from the street or rivers should be treated as contaminated (black water) and extra care taken. See our guidelines on black water and cleaning up after a flood.
FAQ’s:
Can I use my own repairer or do Initio have approved repairers that I must use?
You can use any repairer you like. So long as their costs are reasonable and you are happy with the standard of work, then we’re happy.
My holiday home has potentially been damaged by a storm, but we’re not going there for another month, can I claim that late after the date of the storm?
You can claim for damage after the loss; however, it is an absolute requirement that you do everything you can to ensure any damage is kept as minimal as possible. If you are not able to get to your holiday home yourself, then you’ll need to get someone else to go and check it to make sure that no urgent repairs are needed.
What is my excess?
This amount is chosen by you when you buy the insurance, if you can’t remember, just check your policy schedule (you’ll find this document on your dashboard).
Will Initio send an assessor to look before I fix anything?
An assessor may be appointed to your claim if the loss looks to be substantial. Please note that you don’t have to wait for an assessor, to complete urgent repairs like smashed windows and doors.
“All claims are different and they are assessed on their own merits and facts. The above does not imply a guaranteed approach to all such claims”
Initio were on site for this client within 24 hours following a tornado in the National Park.
At initio, we focus on simplicity, efficiency, and adding a touch of fun. That’s why we’re excited to introduce you to Chatbot Chad, our cutting-edge insurance chatbot that’s here to make your life easier. But why is Chatbot Chad better than all the other generic chatbots out there? Let’s dive in!
The heart of everything we do
Chatbot Chad is more than just a chatbot; he reflects our commitment to excellent customer service and innovation. With his ability to provide quick, accurate answers, access to human support, and continuous learning, Chad is truly a cut above the rest.
Even with powerful AI, the human element is still crucial. At initio, we always put people – our customers – first, no matter how advanced our technology becomes. All our innovations, from our smart claims platform and 5-second quote process to Chatbot Chad, are developed with a people-first philosophy. This commitment also extends to how we nurture our staff culture, ensuring we prioritise human connections in every aspect of our business.
At initio, we’re all about combining the best of technology with irreplaceable human value, making sure you always feel supported and valued.
Expertly trained and constantly updated
Before launching Chatbot Chad, our team spent countless hours training him to ensure he could handle a wide range of queries. But we didn’t stop there. We check Chad’s answers daily to ensure they’re accurate and up-to-date, providing you with the best advice possible. This continuous improvement process means Chad is always learning and getting better.
Decades of expertise at your service
We’ve spent the last decade dedicating time and resources to developing our online support materials. These articles are the backbone of Chad’s responses. When you ask Chad a question, he’s mining through years of expertise and knowledge to find the best answer for you. This wealth of information ensures you’re getting reliable and comprehensive support.
Speak to a human anytime
When you need advice on house insurance in New Zealand, we’re here to help. At any point in your conversation, you can choose to speak to a human. While AI is impressive these days, sometimes you need personalised advice or just need to talk to a person and we’re always ready to provide it.
Your personal research assistant
Think of Chatbot Chad as your very own initio-specific Google. Ask him a question, and he will dive deep into our extensive support articles to find the answer for you. It’s like having a personal research assistant at your fingertips 24/7. Chad’s ability to quickly sift through our resources means you get the information fast. When it comes to house insurance in New Zealand, Chatbot Chad is your go-to expert. Whether you’re looking for information on home insurance policies, understanding coverage options, or help with common terms and processes. Chad has got you covered. He can guide you through the the ‘how to’s of insuring your home on our initio site.
What Chad can do
Help with general questions about our products and services
Point you to relevant pages, FAQs, and support articles
Help explain common terms and processes
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In a boarding house, each tenant rents a room rather than the whole house. They then share facilities such as the kitchen with the other tenants, and in many cases each tenant has their own bathroom.
We can insure boarding house’s with five or less rooms (tenants). If your boarding house has five or less rooms you can get a insurance quote here.
If there are more than six rooms we consider this to be a commercial building risk and we are unable to provide cover.
The hot recent housing market has seen Kiwis buying and selling houses at some of the highest rates ever.
While the effects of FOMO (fear of missing out) may make it tempting to dive into the market, we’re here to remind potential home-owners the importance of due diligence before buying, particularly dealing with meth contamination.
We’re seeing signs of complacency creeping in, as people look to ‘hurry up’ the process, or start reaching for houses that aren’t in the best nick.
If you’re buying a rental property it’s essential you consider that it could be contaminated with meth.
The seller must disclose to potential buyers if there is contamination over 15 micrograms (μg) per 100 square centimetres of meth contamination. This is considered a material property defect.
However, the seller only needs to disclose contamination below 15μg per 100cm2 if they are specifically asked by the prospective buyer (or where the buyer has shown a clear interest in meth contamination).
Your first takeaway should be that if nothing is provided, simply ask the seller about meth contamination at the very least. This is an easy win.
No meth information provided by the seller?
Disclosure is only required if the seller knows about the contamination. In reality, people often don’t know their property is contaminated as there’s no legal requirement to keep testing your rental. Meth often flies under the radar, especially at lower levels.
Therefore you should always have some form of confirmation it isn’t contaminated. See first if anything is disclosed on the real estate listing (ask the agent!). If not, ask the seller if they suspect there could be any contamination (preferably in writing).
If neither can provide any confirmation, you should arrange a test yourself. You can easily do a composite test with a self-testing kit for less than $50. This won’t tell you the level of contamination – it’s simply to tell you whether meth is present or not. It will only put a small dent in your budget, and point out if a more expensive professional composite test is required to find the exact levels.
A swab test is well worth the money.
What if you buy a contaminated house unknowingly?
In short, you could be in for a cleaning bill in the tens of thousands. We paid out an average of $22,000 per meth claim in 2020.
Unfortunately we’ve seen more examples of people buying new houses, and quickly finding contamination. They then enquire about lodging a meth contamination claim.
It’s a painful conversation we never want to have, as in most cases it won’t be covered.
If there’s no record of the house being clean when purchased, insurance companies generally won’t pay for meth discovered within 90 days of your policy beginning. This is because they don’t know the culprit who is responsible, and chances are the contamination happend before the period of cover.
So please take a moment to enquire, ask, and test for meth where necessary before buying. It could save you thousands!
Initio are the pioneers of online house insurance in New Zealand.
Transacting your insurance online does not get much better than with initio. We just want to make it as easy as possible; no unnecessary forms to fill out or paper wasting documentation to clutter your house. Judging by the number of policies the website is transacting it certainly looks like people are enjoying our approach.
You will notice that one of the major benefits of this online approach is that we can provide our exceptional cover at very very competitive prices. Online rental property insurance is just the beginning; we hope to bring you domestic house insurance and contents insurance soon. And all online as they should be.
Finding out your property is contaminated with meth can be scary. Here’s a quick few tips to helping you through making and managing a claim.
Step 1: Get a detailed composite test
If you’ve detected meth at your property it’s likely this was from a base-level composite test, or with a self-testing kit. After a positive preliminary test you’ll need to get a full detailed test. This is a room by room test that take sample wipes in accordance with the IANZ accredited NISOH testing method.
When you receive this test back check that any part of the house has a reading above the 1.5 μg MOH level. Usually this is the case, and means you can make a claim on your policy.
Step 2: Lodge a claim through your dashboard
If the detailed test shows levels over 1.5 μg then login to your dashboard to make a claim. We’ll also need the following documents which you can upload along with the claim:
Composite test result and invoice
Test report from the testing company that includes photos and details of samples
Invoice for detailed test
Tenancy agreement
Tenancy reference checks
Written inspection reports
Remember that you need to meet your landlord obligations to have cover for meth contamination.
Step 3: Get a cleaning quote
You will need to get a meth decontamination company to give you a quote for cleaning the property back below 1.5 μg. They’ll use your detailed test results to put this together.
When you receive this send us a copy to [email protected]. We will then advise you about going ahead with the cleaning.
If you need any assistance or support during the process please do not hesitate to contact us.
Protect your rental with initio’s landlord insurance
2 Days of wild weather in March 2016 cost insurers $30 million, with 687 House and Contents Claims, costing over $2 million.
