Landlord, or Rental Property Insurance is an insurance policy that specifically covers the property owner (Landlord) for their Rental Home and some of the risks associated with being a landlord.

Owning and insuring a rental property is a bit different from owning and insuring your  own home. That’s why it’s so important to get the right insurance cover in place. Initio want to be able to take care of the unknowns and the what ifs for you.

So what are the insurable risks?

To find out check out our latest article.

What is Landlord Insurance?

(just ask our team)

We’re stoked to share that initio has been named one of the Top Insurance Employers of 2025 in Australia and New Zealand. This recognition is awarded by Insurance Business to the best insurance providers to work for, and we made the cut in the “less than 100 employees” category.

It’s a bit of a big deal. Mostly because it’s based on what our people think, not just what we say in job ads or onboarding packs.

So, how do you win?

It wasn’t just about who has the best snacks (although, shout out to our endless supply of choccy biscuits). The process involved our team anonymously rating initio across things like:

• Company culture
• Flexibility and autonomy
• Personal and professional development
• Genuine inclusion and wellbeing
• Whether people feel heard (and whether it actually leads to change)

Long story short: if you don’t walk the talk, you don’t make the list.

What this means for us

We’ve always believed that doing great work starts with enjoying where you work. That doesn’t mean ping pong tables and bean bags, it means feeling trusted, supported, and free to be yourself. It means flexibility that actually flexes. And it means being able to grow without having to shout for attention.

The fact that our team rated us so highly means the world. We’re not perfect (we’re still figuring out how to keep the office plants alive), but we’re committed to making initio a workplace that’s safe, empowering, and – dare we say it – fun.

Why it matters

At the end of the day, great insurance isn’t just about technology or pricing, it’s about people. People who care about customers, push boundaries, and back each other every day. That starts with culture. So this award isn’t just a nice badge, it’s a reflection of what we’ve built together.

Thanks to our team for making initio what it is. Let’s keep doing it differently.

Related articles

Meet some of our team

My first three months at initio

Change is as good as a holiday they say, so after nearly a decade at my previous company, I made the leap, dusted off my CV, stumbled my way through the interviews and signed the contract with initio. But now I had to actually meet new people – ugh.  And then there were the considerations around what to wear. Nothing screams that you’re a giant dork like being the only person wearing corporate attire when everyone else is in trendy sneakers & tee’s. The first morning of my new job, after a restless night worrying about everything and nothing probably ranked a solid eight on my anxiety scale. About the same as when I’m not sure whether someone is going for a handshake, high-five, hug, or kiss on the cheek, and I guess wrong.  But the good news is that I’ve gotten through the first three months here at initio and I’ve now been here long enough to gather my thoughts about what it’s like to work here and the way it operates. So here are my first impressions;

They have some incredibly smart people working here. 

When I say smart, I mean IT smart, which means they’re right at the top of the intelligence pyramid and they keep using words I don’t understand.  This is because one of initio’s strengths is digital technology, so we have a very switched-on ‘dev’ (developer) team. They are responsible for keeping our frictionless digital insurance platform in tip-top shape by performing constant updates as well as upgrades.  This has meant that I’ve learned I didn’t know quite as much as I thought I did when it comes to the IT realm. To quote a classic movie; ‘You keep using that word. I do not think it means what you think it means’. Yes, that actually happened to me. That experience also ranked pretty highly on my anxiety scale. 

Additionally to our talented IT team, our claims and support departments also have smart and savvy team members. Their skills, knowledge and all-around commitment to providing the best service out there are second to none. In fact, I’m surrounded by awesome people who have accepted me into their fold and made me feel right at home.

Positive vibes in spades

I can honestly say that I’ve never worked for a company that’s more committed to creating a healthy company from the inside out. By this, I mean that staff are provided with an incredibly generous and supportive environment which then means that as an employee, we are more willing to go the extra distance for initio. This positive internal culture is nurtured by weekly yoga, a strong social game and rewarding our staff when initio achieves various goals we set for ourselves. This is all great news for our customers who then talk to happy, helpful initio team members.

We’re focused on why we do business

I’ve heard repeatedly since I started working here that initio wants to turn what people think about insurance on its head. Some of the giants in the insurance industry can make their customers jump through hoops when it comes time to pay claims. Initio believes that we should be able to pay (uncomplicated) claims out just as quickly as we get paid for the premium.  We’re proud of the fact that we’ve been able to deliver on this for a few simple claims already.

Don’t be suspicious of their affordable pricing.

Talking to my friends and family about my new job would usually lead to us jumping on initio’s website to generate a quick house insurance quote (… which because of those uber-smart people I mentioned, only takes about 5 seconds).  They would always ask me ‘why is it cheaper?’ and I initially didn’t actually have a good answer. I’ve since learned that initio is on a mission to offer affordable insurance but with the essential bells and whistles homeowners need. In a nutshell, they save costs by keeping everything online. Customer policies, invoices and all communications are all managed online via the client dash. This in turn means no humans quadruple handling things, not to mention unnecessary printing or postage costs.  These efficiency savings are passed on to their customers through their affordable pricing structure.  

So there you have it, my first few months in a nutshell. All of the above points are just my humble opinion of course, but I can honestly say that my friends have asked me ‘are you glad you changed jobs?’ and my answer has been an emphatic ‘Yep, so much happier!’.

By Megan Fisher,  initio Marketing Manager

With Winter well and truly upon us, the heaters have come out. Not surprisingly most residential house fires occur during winter. Kitchen fires make up about a quarter of all house fires – they commonly start from unattended cooking and can quickly spread. As a landlord there are steps you can take to improve the safety of your tenants and home against fire:

• Consider removing curtains from kitchen windows as these provide an excellent fuel source for fire.
• Recommend tenants use camping type gas cookers outside only. When used indoors, these are both a fire hazard and health risk.
• Test smoke alarms at each property inspection. If tenants are removing the batteries considering replacing with a newer model that has a 10 year sealed battery and hush button.
• To reduce the risk of electrical fires, check power points for overloading. Where necessary consider installing additional power points. Faulty power boards are a common cause of fire.
• If your house has downlights installed prior to 2012, check that the ceiling insulation has the correct spacing around the lights to prevent overheating and fire.
• Consider installing safe and efficient heating sources. Tenants may even be happy to pay more rent in exchange for installing a heat pump.
• Clean chimney flues annually and make sure heat pumps are serviced and cleaned regularly to prevent fires and ensure heating sources are operating efficiently.

Rental properties generate income and grow in value over time, but they can also come with unique risks and costs.

One common question for landlords is, “What damage is most likely to occur at my rental property?” Knowing the risks and how to reduce them is key to protecting your investment.

A shift in claim trends: weather makes its mark

In 2023 we experienced exceptional circumstances, notably the Auckland Anniversary storms and Cyclone Gabrielle. Our, and industry, data shows a 10x increase in weather-related claims in the past year. Damage from floods and rain saw a substantial rise in claim payouts compared to 2022, while wind and storm-related claims also showed a notable increase.

Now, more than ever, natural hazard risks such as flood susceptibility, land stability, coastal surge and slope failure (all of which are being identified by local councils) are key to determining a property’s insurability.  For existing properties, and for those you intend to purchase, it is essential that you do your research and this could affect future costs, and even saleability.  

Outside of natural hazards, other risks still exist, and focusing solely on weather-related issues might leave you unprepared for other landlord challenges.

A closer look at 2023 rental property losses

Flood & rain damage: 

For initio in 2022, this category of damage represented 9% of the total number of claims lodged. However, in 2023, this has increased to 21% of the total number of claims. This underscores the substantial financial impact of flood and rain events. The damage to rental properties ranged from minor ceiling leaks to total destruction of the property.  

Wind & storm damage:
Unsurprisingly payouts rose by just over 50% compared to the previous year. While the number of claims lodged was similar between the two years, the severity and cost of damage was significantly higher, partly due to rising construction costs.  

Other water-related damage:
These are typically problems like bursting pipes and leaking hot water cylinders. In 2022, these made up 22% of claims lodged, dropping to 16% in 2023.  The most common water damage claim in both 2022 and 2023 is hidden gradual water damage (HGWD), such as pipes leaking under the kitchen sink, and blocked sewage pipes.  HGWD is often excluded from standard rental property insurance policies, but some policies like initio’s offer limited cover (usually $2,000 – $3,000) through a special extension.  The key to proactively managing this risk is regular property inspections and educating tenants to notify as soon as they see something damp.  

Accidental damage:
We’ve seen a wide range of claims in this category. These usually include unexpected incidents like broken windows, damaged cooktops and carpet stains. Accidental damage made up 13% of claims lodged in the 2023 period.  Not every accidental damage loss allows the landlord to hold the tenant responsible for the insurance excess.  Understanding where your responsibility as a landlord ends and the tenant’s begins will guide your communications with tenants following any damage.   

Other rental property incidents (by number of claims, not value):

• Malicious damage from tenants (3.8%) 
• Fire (accidental and arson combined) (1.8%).   
• Meth contamination (1.7%) 
• Problems with keys and locks (2.7%) 
• Impact damage, typically involving vehicles (2.5%). Eg, car versus garage.

While fire is a relatively rare type of loss, its severity is substantial when it does occur. The average value of a fire claim in 2023 is just over $50,000.

Loss of rent:
Loss of rent applies when damage occurs and the house can no longer be lived in. The floods in early 2023 displaced many tenants, resulting in loss of rent payments to landlords.  During the floods insurers needed to be practical and work with landlords in situations where the property was partially damaged and still able to be lived in.  

In situations where a tenant can no longer reside at the property due to an event like a fire or flood, the tenant must pay for their own relocation and temporary accommodation. It is not your responsibility as a landlord.  If a tenant has their own contents insurance this will usually cover these displacement costs.  

Some policies, like initio’s, also cover rent in scenarios where there is no physical damage to the house.  So this includes eviction or tenant abandonment. These situations made up 2.7% of total claims lodged in the past year.

Final word

Taking a proactive and sensible approach to managing risks as a landlord is its own kind of insurance. From what we observe in daily claim reports, landlords who prioritise choosing the right tenants, conducting thorough tenant checks, carrying out regular property inspections, installing fire extinguishers in kitchens, and keeping up with routine maintenance such as clearing gutters, plumbing and electrical work, have fewer damage issues and don’t add to the above statistics.

Selecting an insurance provider well-versed in landlord risk and that offers tailored policies for rental property owners complements a comprehensive strategy to reduce the risks you face as a landlord.

The statistics presented in this article are based on analysis of claims data from initio. The annual period being  October to October.  Please note that all figures are rounded and in some cases, where the claim type is embedded within a larger loss type, have been calculated to provide a representative view of the claim trends during this period.  Data from the Insurance Council of New Zealand was also utilised.  

Welcome to our newest blog series, where we delve into the essentials of readiness and resilience, covering everything from crafting a solid emergency plan to ensuring your sum insured is spot-on, and streamlining your insurance for the holiday season and beyond. However, before we explore these topics, we’re turning the spotlight on ourselves. 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.

Join us as we kick off this series by demonstrating our commitment to continuous improvement and meticulous preparation, paving the way for a discussion on how you can do the same.  It’s the first step in a series dedicated to empowering you with the knowledge and tools to protect what matters most.

We’ve got our house in order

Behind the scenes, we’ve been busy beefing up our infrastructure and services. Why, you ask? Because we want to be rock-solid for our customers when they need it. It’s all about making sure we’re ready with a helping hand, especially in those critical moments. By bringing in some of the coolest tech and smoothing out our processes, we’re not just hitting the mark; we’re aiming to soar way past it. Our mission? Building a stronger, niftier initio that’s ready to tackle whatever twists and turns come our way, giving our customers that awesome feeling of being in good hands. So, how exactly have we been doing this? Let’s dive in:

• Smart Claims upgrade: We’ve upgraded our smart claims system for quicker, more efficient processing. This ensures easier claims lodging and faster assistance in a crisis.

How to claim

• More team members: We want to make sure we’re always ready to help. So, we’ve brought more people into our team. This means when things get tough, you’ve got more friends at initio to support you when you need it most.

About us

• Location adjustments: We now use more detailed data in our location-based risk assessments. This helps us offer advice and solutions tailored to the unique risks of different New Zealand regions.

• Website upgrades: Our development team recently completed a 4-month platform refresh project to help us go faster and make your insurance even more seamless.

• Continuous learning: Following the 2023 events, we’ve refined our policies and practices to stay ahead in disaster preparedness.

No system can be entirely foolproof against the forces of nature. However, by taking these steps, we aim to enhance our resilience and readiness, providing our customers with the assurance that we’re better prepared to support them through any future challenges. Remember, being prepared is not just about having insurance; it’s about having the right support when you need it most.

The choices you make now can significantly impact your peace of mind and financial security in the future. Our team are always ready to assist you in making informed decisions about your insurance. Feel free to reach out with any questions, or visit our website for more information and resources.

Visit our FAQ pages for more insights and updates on how to manage your insurance effectively. Our goal at initio remains to make insurance easy.

Rental properties not on non town water (bore water, trickle feed, tank water, all of the above) can now be insured online through initio.

If this is you just click ‘No’ to the town water question on the quote calculator.  Initio insurance just keeps getting better.  Providing you quick and easy quotes without the need for time consuming paperwork and questions.

Insure your non town water property online with initio rental property insurance.

Initio is pleased to announce that it has teamed up with Bookabach to provide insurance for holiday homes and baches that are rented out on occasion.   Our specialist rental property insurance policy has been tailored to meet the needs of properties with long term tenants and also those properties which are rented out on a short term basis (eg holiday homes).

If you own a holiday home and this sounds like you…. Even if you don’t rent it out that often, our policy is for you.

The main question is do you have the right covers.  Your existing insuring may take exception to the fact that your property is let our on occasion.  Get it right from the beginning and insure with initio.

See the recent bookabach article for some great things to think about: Got insurance (no, Really)

As winter approaches in New Zealand, ensuring your home is ready to handle the colder months is crucial.

Not only can a well-prepared home offer more comfort, but it can also help you avoid common winter hazards, reduce your energy bills, and prevent potential damage. Here’s a practical checklist for homeowners to get their homes winter-ready.

1. Maximising home insulation and warmth

Enhancing your home’s insulation is key to staying warm and efficient during winter. Here are crucial updates to consider:

• Quality curtains: Choose thermal or lined curtains to significantly reduce heat loss through windows, a common escape point for warmth.
• Flooring insulation: Add rugs or carpets over hardwood or tile floors for extra warmth. Consider investing in underfloor insulation for long-term benefits.
• Roof insulation: Ensure your roof insulation is sufficient and in good condition to prevent heat from escaping upwards, thereby maintaining a warmer home environment.
• Draft excluders and door stops: Use draft excluders or door stops to seal gaps under doors, particularly external doors or those leading to infrequently used rooms.
• Keeping doors closed: Keep doors shut to unused rooms to help contain heat in occupied areas, making heating more efficient.
• Additional sealing and weatherstripping: Seal any cracks or gaps around windows and doors with weatherstripping or caulking to further prevent heat loss.

2. Fireplace safety

If you have a fireplace, ensuring it is safe and ready for use is essential:

• Chimney cleaning & inspections: Have your chimney inspected and cleaned to prevent chimney fires and carbon monoxide buildup.
• Keep your wood dry: Store wood in a dry, covered area to avoid moisture, which can lead to more smoke and less efficient burning.
• Use a wood moisture meter: To ensure your firewood burns efficiently and safely, use a wood moisture meter. Firewood should ideally have a moisture content of less than 20%. Properly prepared wood reduces the risk of chimney fires, thereby preventing potential damage and insurance claims.

3. Smoke alarms and CO2 monitors

Smoke alarms and carbon monoxide detectors are vital year-round, but especially during winter when the use of fireplaces and heaters increases:

• Test and replace batteries in all smoke alarms and carbon monoxide detectors.
• Install carbon monoxide detectors near any fuel-burning appliances.

Ensure that there’s at least one smoke alarm on each level of your home, including the basement and near sleeping areas. Regularly testing and maintaining these devices can be a lifesaver, preventing catastrophic events and the associated costs and claims from fire or gas-related incidents.

4. Managing slippery decks and concrete

Slippery decks and walkways can be a hazard as frost and moisture accumulate. Here are some tips to prevent slips and falls:

• Apply anti-slip coatings to decks.
• Use sand or salt to improve traction on concrete paths and steps.
• Regularly clear away leaves and debris, which can become slippery when wet.

These measures not only ensure safety but also help prevent accidental damage to the property, reducing the need for repairs.

5. Maintain a healthy indoor temperature

Keeping your home at a healthy temperature during winter is essential for comfort and health. The World Health Organization recommends a minimum of 18°C in living areas, with higher temperatures advisable for homes with elderly residents, children, or anyone with health issues. Consider the following to maintain a healthy indoor temperature:

• Use timers on heaters to warm the house before you get up or before you return home.
• Seal gaps and drafts in windows and doors to keep warm air inside.
• Consider using a programmable thermostat for better temperature control.

Maintaining a proper temperature helps prevent issues like burst pipes and the structural damage caused by freezing and thawing, which are common winter insurance claims.

Additional tips

• Inspect your roof: Check for any damages or leaks and repair them to prevent water damage.
• Gutter cleaning: Clear your gutters and downspouts to ensure water can freely flow away from your home, preventing icicles and ice dams.
• Prepare an emergency kit: Winter storms can come unexpectedly. Have an emergency kit with essentials like flashlights, batteries, water, and non-perishable food.

These proactive steps not only make your winter more comfortable but also protect your home from potential damage, reducing the likelihood of having to file an insurance claim.

Useful links

• Minimising fire risks all year round
• Is my house insured for fire?
• Is the cause of damage covered?

Each year initio sees a significant rise in claims during the winter months. Traditionally winter is time of the year when we see the most storms, flooding and water damage. Winter is also when we spend the most time indoors. Not surprisingly most residential house fires occur during winter.

Kitchen fires make up about a quarter of all house fires – they commonly start from unattended cooking and can quickly spread. Use our handy checklist to improve the safety of your tenants and rental house from storm damage and house fires this winter.

• Clean the guttering and keep it clear of debris.
• Ensure any outside structures, such as trampolines and children’s play structures are secured to prevent them flying into your house during a storm.
• Keep trees trimmed and remove any overhanging branches. This will help to keep the gutters clear and prevent branches breaking off and damaging your home.
• Check window joinery and replace or repair any loose latches.
• Check the roofing, and arrange for loose tiles or iron to be secured
• Clean chimney flues annually and make sure heat pumps are serviced and cleaned regularly to prevent fires and ensure heating sources are operating efficiently.
• Consider installing safe and efficient heating sources. Tenants may even be happy to pay more rent in exchange for a heat pump.
• Consider removing curtains from kitchen windows as these provide an excellent fuel source for fire.
• Insist that tenants use camping type gas cookers outside only. When used indoors, these are both a fire hazard and health risk.
• Test smoke alarms at each property inspection. If tenants are removing the batteries considering replacing with a newer model that has a 10 year sealed battery.
• To reduce the risk of electrical fires, check power points for overloading. Where necessary consider installing additional power points. Faulty power boards are a common cause of fire.
• If your house has downlights installed prior to 2012, check that the ceiling insulation has the correct spacing around the lights to prevent overheating and fire.

While having good landlord insurance is an essential ‘safety net’, it is always best to be proactive in protecting your investment. Be sure to implement this checklist so that you can look forward to a trouble free winter.

A landmark Court of Appeal ruling means landlords are now unable to recover the cost of any damage accidentally caused by tenants

AMI Insurance had been attempting to recover a $216,413.28 repair bill since March 2009, after a house it had insured was gutted by fire when a pot of oil was left unattended on high heat.  Initially AMI applied to the High Court, but the tenants Kenji & Tieko Osaki argued successfully that the case should be heard by the Tenancy Tribunal.

When the Tenancy Tribunal ruled for AMI, the case went back to the District Court which reversed the decision, saying that the Property Law Act 2007 applied in this case and that the Osaki’s were not liable.  Consequently, the High Court (in August 2014), and yesterday the Court of Appeal upheld this finding.

Under the Property Law Act, commercial tenants have immunity if there is inadvertent damage, and in this case the court ruled that this immunity applied to residential tenants as well.

The decision leans toward a “consumer protection” angle, in that:

• The court’s approach was to evaluate the “source of money” used to pay the premiums, reasoning that the insurance premiums form part of the market rent.
• The court also noted the imbalance of negotiation between an ordinary tenant (without a solicitor to advise) and a commercial lease where both parties will have legal advice.

Comment

Does this create a precedent? 

It may do, but it is difficult to say without knowing if the judgement will be appealed or seeing any more similar cases before the courts.

Will insurance premiums for Landlords increase?

Probably, but not by a lot.  Firstly, it is hard to say how many of these claims are concluded with the insurer recovering from the tenant, as usually the insurer only attempts recovery where the tenant was negligent, reckless or malicious in some way.

How will this impact the cover I have for my property?

The decision means that the excesses and any underinsurance will not be recoverable from the tenant, so it’s a good reminder to check that your sum insured is sufficient for your properties.

Note also that as the Initio is effectively insuring the tenant, the tenant is unknown, and the general market may require more information on the tenants before providing cover, or require a more robust tenant vetting process.

We understand that most landlords who have taken the steps to insure their property will have good practices in place, but another reminder to take care when selecting tenants.

As a Landlord how should I respond?

It is interesting that the Court of Appeal noted that insurance premiums form part of market rent.  The obvious conclusion is that the tenant should pay the increased premium (and bear in mind that the tenant’s insurance premiums will reduce as they have no need to cover their liability to the landlord).

Alternatively, the commercial model could be applied, whereby the tenant pays the premium in addition to the rent as a condition of the lease.  This approach is yet to be tested in the courts.

Will be there be an appeal?

AMI responded to the media: “At this moment we are still considering the significance of the outcome, most importantly for our customers, and are establishing a working group to look at the consequences.

While we must accept the Court’s decision we find this difficult to reconcile with the powers in the residential Tenancies Act for the Tribunal to order a tenant to pay a landlord money by way of damages or compensation for any breach of the tenancy agreement.

This is now a matter for parliament to address, and we are also considering how we can raise the matter into that arena.”

This article includes some of our opinion based on technical experience in the insurance market, we recommend you seek formal legal advice if you are seeking advice on how this impacts your specific situation and risk.