This guide answers common questions about landlord insurance, tenants, and property use — including how family arrangements or business activities can change your cover.

Do I need to notify you when my tenants change?

You don’t need to notify us every time a new tenant moves in. But to stay covered under your landlord insurance, you must meet the landlord obligations:

• Choose tenants carefully
• Keep records of pre-tenancy checks
• Complete inspections at least every 3 months, and at every change of tenants (with written records and photos kept on file)

You can review these in more detail on our landlord obligations guide.

“Tools like myRent can help with tenant checks, tenancy agreements, and ongoing property management — it’s a handy way to stay organised and meet your landlord obligations.”

If the change involves a different type of tenancy – for example, switching to short-term guests or another arrangement that could affect your cover – please let us know so we can check you’re on the right policy wording. You can also compare our options on the ‘help me choose’ page

My family member ‘rents’ the house – what kind of policy do I need? 

If a family member lives in the home and pays rent under a tenancy agreement, you’ll usually need landlord insurance. This gives you cover for things like loss of rent or intentional damage by tenants. Read more on our landlord insurance page.

If it’s a second dwelling on your property that a family member lives in permanently and you don’t want/need specific landlord benefits such as loss of rents , this usually requires a separate own home policy for each dwelling. More details are here: second dwelling – family lives in it.

Examples:

• Your brother pays rent and you want to cover that rent income → landlord insurance
• Your parents live in a granny flat rent-free → own home insurance

What if my tenant wants to run a business from my rental?

Your tenant is responsible for arranging their own commercial insurance to cover their business activities. This is separate from your landlord insurance and not something we provide. See our guide: When do I need commercial insurance? 

If the business changes the way the property is used (for example, a salon, office, or childcare), it could affect whether we can provide cover.  Get in touch with us if you’re unsure – we’ll be happy to review your situation with you. 

Ready to make the switch to initio? Start with a quote

Related articles

• When do you need commercial insurance?
• Landlord obligations
• Have a second dwelling that your family lives in?
• Help me choose the right insurance
• Landlord insurance for multiple rentals

We currently offer Landlord insurance, Landlord insurance for multiple attached units, Own home and contents insurance, House flip insurance, Car insurance, Holiday home insurance and we also have an add-on for Short term paying guests insurance (e.g. Airbnb) for your home or holiday home.

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.

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Related Articles:

• How property use affects your cover
• How to switch from your current provider
• Liability cover in initio’s house and contents insurance

Navigating the intricacies of insuring a home with an attached flat in New Zealand, especially one that is rented out part-time, can be overwhelming for landlords and property investors. At Initio, we are dedicated to helping you make sense of these complexities, equipping you with the tools needed to make the right insurance choices for your unique situation. This article is specifically designed to assist you in understanding the process for homes with attached flats rented out occasionally.

Guidelines on Insuring Your Home and Attached Flat in NZ

If you happen to own a home with an attached flat rented out occasionally, you may find yourself unsure about how to secure the right insurance coverage. This situation differs from one where both units are exclusively used as long-term rentals (which are catered for by our multi-unit policy). Insuring a property where you live and have an attached flat rented out part-time necessitates a more nuanced approach.

Here’s what you need to know:

• Own Home policy: This policy has been crafted to cover the portion of the property that you inhabit.
• Landlord/Rental policy: This policy needs to be put in place to provide coverage for the attached flat when it’s rented out. Even if the rental isn’t full-time, coverage for the times when the flat is tenanted is ensured by the landlord/rental policy.

Should a significant claim arise, both policies would be engaged, with the combined sum insured being applicable to the whole property.

Why do I need Two Policies?

Each policy is designed specifically to cover one self-contained home/unit only and for the risks associated with the type of occupancy. The Own Home policy provides coverage for the main house/unit where you live, while the Landlord/Rental policy covers your rental home/unit including the legal liabilities and other specific risks associated with renting.

Conclusion

The process of insuring a home with an attached flat, rented out on occasion, needn’t be a difficult one. With an understanding of how Initio’s insurance products can be strategically combined, comprehensive protection of your property is ensured. Additional information on this topic, as well as other insurance solutions offered by Initio, can be found here.

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Useful links

• What counts as a self-contained unit?
• Can you insure a rental property and attached unit under one policy?
• Can I insure my house that’s rented to guests?
• What’s a multi-unit rental property?

You can buy a policy today, and for a future effective date within the next 30 days.  We’ll ask you to enter a cover start date on the initial quote page before proceeding to the application form.

Purchasing a new house

If you’ve purchased a house, you should set the cover start date as the same day as the settlement date for the purchase. This means your insurance will start when you own the house.  We are unable to provide cover prior to the day you become the legal owner.

Changing your insurance company

If you’re changing to initio from another insurer, it’s a good idea to set the cover start date on your new initio policy to the day that your existing policy expires. This way, there is no period where you are not insured.

Ready to get your journey started with initio?

Get a quote

Related articles:

• How to cancel your old insurance
• How to buy your first policy

Found intentional damage at your rental property? Don’t worry, your Initio landlord insurance policy covers up to $25,000 of intentional damage by tenants. If you’ve found holes in walls, smashed windows, graffiti etc, please follow our below steps.

What you need to do

1. Take photos of the damage – it helps us if scale is provided in the photos, take both close up and pulled back photos
2. Get a quote to repair any damage – a room-by-room- itemised quote will speed up the settlement process
3. Login to your initio dashboard and select ‘Make a Claim’ on the property. Complete our smart claims process and attach your photos and quotes.
4. Hold tight. We will email or call within a business day to tell you what happens next.
5. Consider applying to the tenancy tribunal for vacant possession, and to recover any uninsured losses. 

Remember the more information the better. We will require other documents such as:

• Tenancy agreement
• The most recent 3 inspection reports
• Tenant references & application
• Or anything you might think is relevant

This can help us determine when damage occurred, and speed up our claims process for you.

What will we cover?

The intentional damage caused by the tenant is covered. However, bear in mind that insurance is designed to help you recover from unexpected sudden losses, but does not cover damage that has occurred throughout the tenancy. Like all insurance, an excess will apply to each damage incident.

If there has been damage from one event – such as an out of control tenant party – all the damage could be covered under one excess. However, if any of the damage has occurred throughout a tenancy, multiple excesses will apply.

What won’t we cover?

House insurance covers sudden and unexpected events. We understand that there can be other areas of damage or neglect to your property. Unfortunately, insurance cannot cover everything! 

• Rent arrears
• Wear and tear
• Rot or other gradual deterioration
• Rubbish removal
• Cleaning costs
• Gardening costs
• Repairs under excess
• Removal of tenants belongings
  

Some of your ‘uninsured losses’ can be claimed back via the tenancy tribunal. 

FAQ’s

Am I covered for loss of rent? 

If the home is so badly damaged that it is deemed ‘uninhabitable’, you might be entitled to loss of rent. ‘Uninhabitable’ means unable to be lived in. For example, no access to kitchen or bathroom facilities, water or electricity. There is no cover for loss of rent if the repairs are just cosmetic (carpet/painting/plastering etc). 

Will initio send an assessor?

If damage is significant and needs further examination we may get an assessor to your property. Usually, if the damage is likely to be under $5,000 then we are happy to proceed based on photographs and formal written quotations.

What is my excess?

Your standard policy excess will apply. This amount is chosen when you first purchase your policy. If you can’t remember, check your policy schedule which you can find on your dashboard.

Can I use my own repairer or does initio have companies I must use?

You can use any repairer or supplier you like as long as their costs are reasonable. Please make sure you are happy with the standard of work they provide.

Related Articles:

• How to make a claim
• Loss of rent FAQ’s
• Are you thinking of becoming a landlord?

For many people, insurance is the ultimate grudge spend. Along with council rates it typically represents one of the most significant expenses associated with home ownership.

Because of the intangible nature of insurance, and its status as everyone’s most hated expense, the insurance industry often gets a bad reputation from the public. Currently, the insurance industry in New Zealand is facing all-time lowest levels of trust among the general public. Here at initio, we are challenging this and the traditional practice of insurance by making insurance easier and more accessible.

To help increase the trust we thought we would break-down the top house insurance myths we encounter:

1. “I have paid my premium, why do I have to pay an excess?”

A common grievance towards insurance companies arises from the customer’s responsibility to pay their excess come claim time. It may seem unreasonable to have to contribute the excess cost towards your claim when you have already paid for your premium. However; there are good reasons that insurance companies will charge an excess:

a) To avoid small claims

If there was no excess on insurance policies then people would rightfully be able to lodge small claims (think $80, $50 or even $10) that would make up a significant portion of total claims. Management, payment, and processing of claims is one of the largest operating costs of an insurance company.  For example, for most clunky insurance companies to process a $150 claim, is more than the value of the claim itself.  A high volume of such small claims would bloat the expenses for the insurance company, ultimately resulting in higher premiums for customers. Charging a minimum excess is the insurance company’s way of keeping premiums down while making sure they are covering the important stuff – not every broken toy or sock lost in the washer.

b) As a measure of self-insurance.

Insurers also give the option to customers of a higher excess above the minimum. This is a means of self-insurance where those that are more willing to cover additional costs towards a claim can get a reduction in premium via an increase in their excess.  Initio for example provides the option of a $2,000 house insurance excess – which was as a result of customer feedback.

2. “Insurers will screw you over with the fine-print”

Whether it’s from a bad claims experience, or a general distrust for insurance companies – people often hold a grudge against insurers. Customers often think insurers are looking for a way out of paying  claims and that they will use the fine-print to do it. This may reign true, however will usually reference back to conditions included in the policy wording – and hence the insurance agreement.

The problem isn’t the fine print, the policy wording didn’t change from when the cover was started.  The argument is more around the interpretation of the policy and we are the first to agree that this isn’t always straightforward.  Policy wordings need to get rid of the jargon and be written in plain english.

At initio, we are taking the Reserve Bank’s (New Zealand’s Financial Regulator) recommendation for clearer, more understandable insurance very seriously. We have prioritised easy to understand policy wordings, compiled to clearly show details of our customers cover, and published real life examples of claims we have paid and scenarios that are not claimable.

Whilst we don’t expect everyone to read each policy wording back to front, there are parts of our policy that are very important to be known to the customer. Therefore it is important for people to take time to get familiar with the useful policy information we provide so that they are not left surprised with unexpected conditions in the event of a claim.

To read our full Home and Contents policy wordings please visit the following links:

Home Insurance

Contents Insurance 

For a useful comparison between our policy wording and other covers across popular insurers in New Zealand, visit https://initio.co.nz/#comparison

3. “Insurance companies are just there to make profit not friends”

Perhaps the most truthful stereotype we hear is that people believe insurance companies are there to make money. While this is true; companies have an obligation to shareholders to return a profit, they also have an obligation to pay claims. If insurers were forced to pay out the same amount that they received in premiums and were essentially not there to make money, no insurance companies would exist. Like any business there are various operating costs for an insurance company that include managing claims, administration costs, reinsurance (insurance for insurance companies) and many more.

An insurance company will aim to adjust their price and policy so that the amount paid out for claims is less than that received in premiums. The proportion of this is called the insurer’s ‘loss ratio’. Historically, a domestic house insurer might set up their strategy and pricing to aim for a loss ratio of 60%. Then once the costs of operating the company (including significant re-insurance costs for widespread earthquake losses) are deducted, an approximate profit margin of 3-8% on the original premiums received might be earned by the insurance company – although this varies based on good and bad years.

When you purchase insurance you are buying a product that gives you peace of mind that you are covered when disaster strikes. Like any other product you buy, the seller needs to make a profit to survive.  Effectively with insurance you are pooling your premiums with other customers to receive protection should something go wrong.  The insurance company is the administrator of these funds and takes the risk (and the margin) of doing so.

4. “You’re better off not bothering with insurance and having your own emergency fund”

Perhaps a myth popular with those who most distrust insurance companies is that you are better off forgetting about insurance completely and putting away the money you save on premiums each year into your own ’emergency fund’. This is the most extreme case of self-insurance. This could certainly be a practical solution for the most disciplined people with a comprehensive approach to reducing their risk. However, there are some obvious pitfalls and major challenges to this approach.

You are likely to experience several years where you are effectively un-insured while you build up your fund. After a number of years have passed you might have saved enough to adequately cover minor losses. However, it will take many many years; if not your whole life, to accumulate enough for a worst case scenario loss.  If you put aside $1,500 a year for 50 years at current interest rates you would save $127,000, which seems reasonable, but when you adjust for inflation, that $127,000 only represents $47,000 of todays money.   Would that be enough to replace your home and contents in a total loss fire? And could you trust yourself not to ‘borrow’ from the fund? The decision to take out insurance can have a life changing effect on you in the event of a disaster – for the better or the worse.

Remember that when you purchase insurance, not only are you buying cover when things go wrong – but you are obtaining piece of mind to enjoy a less stressful life.

Useful articles

• Top five mistakes to avoid when insuring property
• Five fundamentals of house insurance

Most people do not have the time, or the expertise, to sit down and work out exactly what it could cost to rebuild their home from scratch. If you are looking at your house insurance options, an online house insurance calculator can be a helpful place to start.

It does a lot of the heavy lifting by using property details and current building cost data to give you an estimated rebuild cost. Most of the questions are things a homeowner can usually answer themselves, such as the size of the home, how many levels it has, and what materials it is built from.

Online calculators do not provide advice, and they may not capture every detail that could affect the rebuild cost of your home. Instead, they use the information entered, along with property and construction data, to provide an estimate. If you would like a more tailored assessment for your specific property, a builder, architect, quantity surveyor, or insurance valuation service may be the best option.

It is also important to remember that your sum insured should reflect the cost to rebuild your home, not what you paid for it, what it might sell for, or what the land is worth.

Key takeaways in this article

• A house insurance calculator helps estimate rebuild cost, not market value
• Your sum insured should reflect the cost to rebuild your home to its current size and standard
• Land value, purchase price, rates valuation, and QV are not the same as rebuild cost
• Renovations, unusual features, and non-standard materials can affect the estimate
• Demolition, professional fees, and site-related costs should also be considered
• Reviewing your sum insured regularly can help reduce the risk of underinsurance

What is a house insurance calculator?

A house insurance calculator, also called a sum insured calculator, is an online tool that helps estimate how much it could cost to rebuild your home after a total loss.

It is designed to provide an estimate based on typical building replacement costs. It is not intended to provide personal advice, and it may not allow for every detail that affects the rebuild cost of your home.

For many people, it is a practical and straightforward way to get started.

Rebuild cost is different from market value

One of the most important things to understand is that your insurance should be based on rebuild cost, not market value.

The price you paid for your home can include the land, location, school zones, and housing market demand. A rates valuation or QV can also include land value and broader market factors. None of those figures tell you what it would cost to physically rebuild the house itself.

That is why your sum insured should not be based on:

• the purchase price
• the market value
• the rates valuation
• the QV
• the land value

Instead, it should reflect the likely cost to rebuild the home to a similar size and standard using today’s building costs. See ‘Why does my rebuild value change?‘ for more information.

What your sum insured should cover

Your sum insured should reflect the full cost to rebuild your house to its current size and standard.

That can include:

• demolition and clearing the site
• rebuilding the house itself
• current material and labour costs
• architect, engineer, or consent-related costs
• site access or complexity that may make rebuilding harder

Not every property is simple to rebuild, so it is important to think beyond just the floor area.

What can affect your rebuild cost estimate?

A calculator is a helpful starting point, but it may not reflect every detail of your home. That is why it is worth reviewing the result carefully, especially if your property is more complex than average.

Renovations, unusual features, and non-standard materials

The estimate may need a closer look if your home has features that are not typical, such as:

• renovations or extensions
• high-spec finishes
• unusual design features
• detached structures or other improvements
• older homes with non-standard construction

If you have made improvements such as building a deck, installing a swimming pool, adding a new room, or upgrading your kitchen or bathroom, those changes may affect your rebuild cost.

Size, layout, and standard of finish

Rebuild cost is not just about floor area. Two homes of the same size can cost very different amounts to rebuild depending on their design, layout, and level of finish.

Things that can affect the estimate include:

• ceiling height
• kitchen and bathroom quality
• custom joinery
• roof shape
• cladding type
• number of storeys
• architectural design

Site access and demolition costs

The site itself can also affect rebuild costs. For example:

• steep sections can be harder to access
• tight urban sites can increase labour and delivery costs
• retaining walls or complex foundations can add cost
• demolition and debris removal may be more expensive on some sites

House and contents cover are different

A house insurance calculator estimates the rebuild cost of the home itself. It does not calculate the value of the belongings inside it.

If you also want to know what your contents are worth, that should be worked out separately. House cover and contents cover are designed for different things, so it is important not to mix the two.

Why it is important to review your sum insured regularly

It is important to review and revise your sum insured regularly to help make sure it still reflects the likely cost to rebuild your home.

A good time to review it is when your policy is up for renewal, but you can check and update it at any time.

This matters because building costs can change over time, and your home may have changed too. While your policy may include a general inflation adjustment at renewal, that will not usually account for significant improvements, extensions, or alterations you have made.

If you do not review your sum insured from time to time, you could find yourself overinsured or underinsured at claim time.

When should you get a more detailed estimate?

For many homes, a calculator gives a useful estimate. But you may want a more detailed assessment if your home:

• has been heavily renovated
• is architecturally designed
• has unusual materials or features
• is very large
• is older and more complex to rebuild
• is on a difficult site

In these situations, a builder, architect, quantity surveyor, or other valuation expert may be able to give you a more tailored estimate.

Why this matters in New Zealand

In New Zealand, sum insured matters because house insurance is generally based on the amount you choose as your cover limit.

That means it is important to choose a figure that feels realistic for your home and its likely rebuild cost. If the amount is too low, it may not go far enough in a major claim. If it is too high, you may be paying for more cover than you need.

Final thoughts

A house insurance calculator is one of the easiest ways to get started when working out your sum insured. It saves time, uses relevant property and construction data, and helps give you a practical estimate without having to calculate everything yourself.

But it is still only a starting point. The most important thing is to check whether the estimate reflects your home, its features, its level of finish, and the likely cost to rebuild it. If you are unsure, getting a more tailored assessment from a builder, architect, quantity surveyor, or insurance valuation service may give you more confidence in the amount you choose.

You might also be interested in:

• Own a lifestyle block or rural property?
• Top 5 mistakes to avoid when insuring your property
• How do I add contents insurance to my policy?
• Understand the differences between contents cover options
• How does excess work?
• What contents items are automatically covered under your insurance policy?

Frequently asked questions

How do I calculate my sum insured?

You can use an online house insurance calculator to estimate what it may cost to rebuild your home to its current size and standard using today’s building costs. If you want a more tailored assessment, you could also speak with a builder, architect, quantity surveyor, or valuation expert.

Should my sum insured be the same as what I paid for the house?

No. Your sum insured should reflect rebuild cost, not purchase price or market value.

Does my sum insured include the land value?

No. Your sum insured is about the cost to rebuild the house, not the value of the land.

Is a rates valuation or QV the right figure to use?

Not usually. These figures do not necessarily reflect what it would cost to rebuild your home.

How often should I review my sum insured?

It is worth reviewing it regularly, especially at renewal time or after any renovations, extensions, or major improvements.

Written by Toby Pudney – Initio’s Support Team Lead

Toby has been with initio since 2023 and is the Support Team Lead. He brings more than six years of experience in the insurance industry, giving him strong knowledge of general insurance. He has studied with ANZIIF and holds a qualification in New Zealand Compliance for Advisers (General Insurance Broking).

When you have had claims you may have to pay more premium on your insurance. Don’t be offended, insurance companies are just trying to automatically place a price on the risk of the driver. In insurance driving this is called ‘pricing risk’.

Car insurance is a bit different to house insurance in that when you claim on your house insurance the vast majority of the time it is something outside of your control, like a storm blowing your roof off or a burst water pipe.

However, the typical car insurance claim does have something to do with the driver of the car. While it’s not always the case, the driver (and policyholder) can be at fault if they lost control of the car and crashed.

Naturally, some drivers are more likely to have accidents. For example, young inexperienced drivers are more likely to crash than a middle aged driver in say their 40s. Insurance companies will price this difference into their base premium rate calculation.

Even within these groups (i.e. under 25 year old drivers) there are subgroups of drivers that are more prone to accidents.

In general insurance companies try to balance long term claims payment trends between good and bad drivers. If someone uses their policy more and is paid out 1 more insurance is it fair that they pay the same premium as someone that has never made a claim?

The way insurance companies try to gauge this is by assigning a Driver Grade to the person applying for the cover.

This is what they are trying to do when they ask you to disclose how many car insurance claims you have had in the last five years.

Why do we only care about claims in the last five years?

Don’t worry, we (and most insurance companies in general) know and expect that the average driver is going to have a car insurance claim in their lifetime.

People’s driving habits change over time so how you drove 20 years ago is not likely to be reflective of how you drive today. Insurance companies realise it’s unrealistic too look too far back into the past. Someone that had three accidents all over 10 years ago does not reflect their driving today.

Therefore you will only be asked about claims in the last five years. If someone has had 3 accidents or claims in the last five years there is a good chance the driver is more dangerous than the average.

Do I pay an excess when I am not at fault?

If you are at fault for an accident, or admit liability you will need to pay your policy excess on your insurance payout.

If you are not at fault, and you have the details of another party who caused the crash and who admits liability its unlikely you will have to pay an excess.

Some particular items of your policy may not have an excess that applies to the cover. Examples include theft, or windscreen damage. You should check your policy for these.

In all other cases it’s most likely that you will have to pay your excess even if you’re not at fault. If you have a crash with another driver, but you are unable to get their details there’s no definitive proof of who was at fault, and you will generally have to pay the excess on your policy.

How do Insurance companies apply the Driver Grade?

Some insurance companies will ask you to only disclose claims where you were ‘at fault’. We ask you to disclose any claims where you were either at fault, or paid the excess on the policy. We are not saying that every claim where you have paid the excess is one that is your fault, but we are trying to offset and balance premiums between those that have used their policy for payouts, and those that have not. It’s only fair.

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Related Articles:

• Am I still insured if I crash without a warrant?
• How do I buy my first vehicle policy with initio?
• What is driver grade?
• Is your windscreen damaged?

Meth Contamination is one of the largest loss leaders for landlords in New Zealand. Cleaning costs for a well-contaminated house can easily cost over $10,000.

Do I need to test for meth before renting out my property? 

Regular meth testing isn’t a requirement under initio’s landlord insurance. However, we recommend testing at key times – such as between tenancies, when buying a property, or if you suspect drug use or manufacture.

With initio’s landlord cover:

• Meth testing and cleaning are covered up to $30,000 if a positive reading over 1.5 μg occurs during the insured period.
• Loss of rent may also be covered while the property is being decontaminated.

For Unlawful Substances liability cover specifically, you must test before and after each tenancy to have that liability protection in place.

For more details, see our guidance and claims info:

• Is meth testing required?
• How meth contamination claims work

When do we cover meth testing and cleaning costs?

If you have our landlord cover and you get a positive reading over 1.5 μg from an event during the insured period, our meth cover applies.

We’ll pay up to $30,000 for testing and cleaning the house back to a level below 1.5 μg. A higher $2,500 excess applies to meth however in most cases this cost comfortably exceeded.

Loss of Rent

It can take several weeks, or even months for a property to be fully cleaned for meth. During this cleaning your property won’t be able to be rented.

Our landlord insurance will also cover the lost rents during this period, over and above the $30,000 limit for meth cleaning. We’ll cover the rents until either the property is cleaned (and can be rented again), or the loss of rent limit you selected on your policy has been reached (usually $20,000).

What do I need to do to have meth cover?

To have meth contamination cover you’ll need to meet our landlord obligations. Please make sure you’re doing these so you’re not caught out when you need to make a meth claim.

For details on when meth testing is required, see here.

What do I need to do to insure a home which already has meth contamination?

At initio, we are unable to provide cover for a home that is already contaminated above 1.5μg/100cm2.  If you want to insure a home with contamination above that level, you’ll need to arrange for a professional clean and a subsequent report from the provider confirming the property has been cleaned to below those levels.  We can then consider cover for you.

Protect your rental with initio’s landlord insurance

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Related articles:

• Understanding the Gluckman meth report
• What to do after a positive meth test
• How do meth claims work?

Insurance made simple when you change homes

Congratulations! You’ve found your new dream home and the day has come for the big move to your new property. But what if something falls off the back of the truck during the move? Does your insurance still cover it?  Moving house can be stressful at the best of times, so here are a few simple steps to ensure that at least your insurance is under control.

Firstly, it’s important to remember that your house and contents insurance cover is for a specific address. When you’re moving into a new house and have sold your old house, it’s important to note that you will need to cancel the house and contents policy for your old address and create a brand new policy for your home and contents. 

Cancel the home you’ve sold from the sale settlement date and insure the new home from the purchase settlement date.  Our system will automatically provide a refund for the unused portion of the cancelled policy.

The new cover will require updated details about your new address, and in some cases these may need to be reviewed by our team. It’s a good idea to apply for cover early – even before you go unconditional – so you know there won’t be any issues insuring the new property. This is especially important for homes that are older, in higher hazard zones, or have unconsented work.

What about contents during the move?

Contents in transit is usually covered by specialty insurance, but your standard owner-occupied contents policy does provide some limited cover.

With initio, your contents are covered for sudden and accidental loss from specified events while being moved from your insured home to another permanent residence in New Zealand. This cover only applies if the loss happens within your insured period.

• Fire, lightning or explosion
• Theft following violent and forceful entry to a motor vehicle or building
• Storm or flood
• Natural disaster
• Aircraft or other aerial or spatial devices, or articles dropped from them
• Impact by motor vehicle 

It’s important to know this cover does not apply to accidental breakage or damage – for example, if a box is dropped, something tips over in the truck, or items shift and break in transit. We also don’t offer an option to extend the cover beyond these listed perils.

If you’re making a big move (like between cities) or have valuable items you want extra protection for, we recommend checking the wider insurance options provided by professional moving companies. These can give you peace of mind for risks outside the limited cover in your initio policy.

We’re in between homes, do you offer contents insurance by itself?

We don’t currently offer stand-alone contents insurance. Contents cover is only available when it’s paired with an active house insurance policy for the same property.

If you just need contents cover for a short time (for example, a few days between settlement dates), get in touch with our support team. In some cases, we can help with very short periods of cover.

If you don’t have plans to purchase another home right away but still need contents insurance, you’ll need to arrange this with another provider.

What if your OLD house catches fire and is destroyed on the day you move out?

In this scenario, it’s the new owner’s responsibility to ensure the address on their insurance is up to date. It aligns with the handover date on your sale agreement.

Maybe something was to happen to your NEW house before your official settlement date?

This remains the responsibility of the people you’ve bought the house from. The insurance officially becomes your responsibility from the date of your settlement agreement.  You are unable to insure the home for the period prior to the settlement date.  On the other hand, if something were to happen to your new house on the day of your official handover, insurance cover becomes your responsibility.

With a self-service platform like initio, making changes to your cover is simple. Start a new policy or cancel old cover in just a few clicks.

That’s it! Just remember, the day you take over the keys is when your new house needs to be insured from.

This guide is intended to be a quick reference when moving house. We recommend reading the full policy wording for the full details of your house and contents coverage.

Related articles

• How do I get a quote with initio?
• Why do I need house insurance?
• When do I need house insurance?
• What does initio not cover?
• Insurance for when you are buying your first house

Calculate your contents

As a landlord, you work hard to provide safe and comfortable homes for your tenants. But were you aware that a significant portion of rental-related claims stem from criminal activity?

In 2023, 14% of the claims we processed at initio were related to criminal actions, such as malicious damage, methamphetamine contamination, and burglary. These incidents not only cause stress and financial strain but also unexpected expenses for landlords.

Burglary and theft

As a part of the criminal activity, 30% were related to burglary and theft. This can be a common issue, especially when a rental property is occasionally vacant, making it an easier target due to the absence of people within the home. 

Your property being empty for over 60 consecutive days will change your policy terms, and a higher excess of $5,000 will apply if you need to make a claim. If you’re expecting your property to be vacant for reasonably long periods – beyond 60 days, get in touch with us.

Just over 41% of burglary-related claims we received last year were related to theft of copper piping, plumbing, or hot water cylinders! 

Not only does this result in stress for landlords to replace these items, it also results in a hefty bill to cover, as well as a potential loss of rent. The average cost for the accepted claim, relating to repairs for our clients last year was just over $8,000.

Our policy offers an automatic benefit for malicious damage, or theft by tenants. 41% of rental-related claims were paid out through our automatic benefit.  You can enhance property security with locks and lighting to deter burglars. Consider installing surveillance cameras or alarm systems and maintaining your property adequately. This will help it look lived in as well as deterring unwanted activity. 

Malicious damage

Of all the rental-related claims we received throughout 2023, 24% were related to malicious damage. Such damage can occur throughout a tenancy, but we saw 31% of these claims stemming from eviction.  In this stressful scenario, landlords face the dual challenge of evicting a tenant as well as addressing significant property damage. These types of claims result in an average claim cost of just over $9,000 – an expensive, and unexpected type of bill! 

Fortunately, our landlord cover offers an automatic benefit of $25,000 per event, for claims resulting from malicious damage caused by tenants. Make sure you conduct thorough tenant screenings through reference checks, credit checks and tenancy tribunal history. Also, establish clear lease agreements to minimise risks of eviction-related damage.

In the event that a key is lost or stolen, you can take action and replace it, and initio’s policy has a benefit designed exactly for this! This will help minimise the risk of someone returning while it might be vacant. With our landlord policy, we offer an excess-free keys and locks benefit – where we cover up to $1,000 for the replacement of keys and locks.

Methamphetamine contamination

While not common, this is a costly issue. Across all the criminal activity-related claims that occurred in rental properties in 2023, just over 11% of these claims were related to methamphetamine contamination. While this represents a small percentage, it is the most costly and widespread type of incident to affect your rental property, with an average cost of just over $20,000. Since your property cannot be tenanted when this sort of situation occurs, you as a landlord, will also suffer from loss of rent, another cost that heavily affects you. 

Initio’s landlord cover includes an automatic benefit of $30,000 for methamphetamine contamination which will cover the testing, and cleaning costs in the event of a contamination taking place. We also offer an automatic benefit of $20,000 for loss of rent, which can be increased. We are prepared to cover you for this criminal activity as we understand the costs – and time it can take until your property is thoroughly cleaned.

Regular property inspections can help detect early signs of drug-related activity. Also performing reference checks, as well as tenancy tribunal history will help determine in the early stages if they will be good tenants. 

Arson

While we only saw one claim relating to arson last year, it can also be the most expensive rental crime-related claim we pay for. This is because a house fire causes extensive damage, which can affect the overall structure of your property. To mitigate this risk, install smoke detectors and fire extinguishers. You could also provide a fire blanket, an invaluable tool for smothering fires. It’s a good idea to have fire safety equipment easily accessible, offering tenants a quick solution to douse flames before they spread.

Check your sum insured

In tough times, lowering your sum-insured to reduce your premium might seem appealing. However, this could lead to ‘under-insurance,’ a risky strategy that could backfire if significant damage occurs. Insurance is there to put you back in the position you were in before any mishaps, and cutting corners on your sum-insured might leave you short when you need support the most. We have seen the occasional customer not having their property fully insured for the right amount. This creates large amounts of stress, so we always recommend reviewing your sum-insured yearly, at the renewal of your insurance policy. 

Initio, your partner in landlord insurance

Initio is dedicated to helping New Zealand landlords safeguard their rental properties against unforeseen events. By understanding the potential criminal activities, or accidents, that can impact your investment, you can take proactive steps to protect it. With our comprehensive landlord cover, you can enjoy peace of mind knowing that your property, and your financial well-being, are protected.

Let initio be your partner in navigating the challenges of rental property management. Our goal is to provide the protection and support you need to ensure your rental homes remain safe, secure, and profitable.

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FOR MORE INFORMATION

• IAG article about sum insured
• Canstar article about building costs in New Zealand

ARTICLES OF INTEREST:

• Calculate your sum insured
• What are my obligations as a landlord?
• Is my house insured for fire?
• Minimising fire risks in rentals year-round
• Can I hold my tenant responsible for damage?
• Is my rental property covered for meth?

The statistics presented in this article are based on a comprehensive analysis of claims data from initio for the calendar year of 2023, spanning our entire rental claims portfolio. Please note that all figures are approximate and have been calculated to provide a representative view of the claim trends during this period.

Understanding your cover with initio when you own a lifestyle block or a rural property

Owning a lifestyle block in New Zealand offers the best of both worlds – the comfort of a home and the freedom of rural living. Knowing your insurance policy well is key to ensuring you’ve got the cover you need. Here’s some things to consider when insuring your lifestyle block home(s) with initio. You can get insurance for your home if it’s on a lifestyle property with our standard house and contents cover. However, be aware of a few things, especially if it has extensive fencing, you run a business, or farming activities from your property.

What IS covered

Regarding your home, your policy outlines what is included in the definition section of the policy document.  It includes (but is not limited to) the following items, providing they’re used solely for domestic residential (not commercial use, which includes farming) use;

• Outbuildings within residential boundaries*, such as a garage, woodshed, utility shed.
• Driveways of permanent construction that provide access to your home (gravel or shingle driveways are not covered).
• Patios, decks within residential boundaries*.
• Immediate fencing around your dwelling (and alongside the main driveway to the home) – please note that it does not include fencing outside of the residential boundary.  In addition, a fence that borders a neighbouring property is covered for your share only (as determined by the fencing act).
• Walls including garden and retaining walls up to $25,000 (can be specified for a higher limit).
• Swimming pool and/or tennis court up to $45,000 (can be specified for a higher limit).
• Permanently sited water storage tank or septic tank.

We also include the following items so long as;

1. they’re owned primarily for domestic use, 
2. but which may also have limited use for rural lifestyle purposes and
3. they are not valued above the amounts shown below. If the items do have higher values, then there is no cover unless otherwise agreed and stated on your policy schedule:

• outbuildings that have limited use for rural lifestyle purposes such as for the storage of tools, animal feed, uninstalled equipment, or  machinery and vehicles.
• private utility plant and associated equipment, including, but not limited to, wind or water mills, or diesel generators, with a replacement cost of no more than $10,000.  
• Any bridge or culvert, permanent ford or dam, with a replacement cost of no more than $15,000.
• Any well or borehole including its pump, lining or casing, with a replacement cost of no more than $10,000.

* Within residential boundaries: In the context of lifestyle blocks, a “residential boundary” refers to the specific area of your property that surrounds your dwelling and is distinct from agricultural or paddock areas.

What’s NOT covered

• Farmer’s liability – Liability arising from farming activities, eg. stock/farm animals escaping and causing damage to third parties.
• Farm fencing (that’s not within residential boundaries*).
• Land outside of what’s provided under the NHC cover (see the link for land NHC will cover).
• Buildings used for business/commercial use (other than a home office).
• Live plants/trees. 
• Stock/farm animals. 
• Tractors. 
• Farm bikes. 

Key takeaways

Initio’s policy covers a residential home on a lifestyle block, including some limited farm use of buildings and contents. However, it doesn’t cover liability for farming activities or farming equipment. It’s important to know the exclusions, especially those related to farming activities, natural disasters, and specific property features. Always check your policy details and reach out if you have any concerns.

If you have specific questions, feel free to contact us. We’re here to help you understand and maximize your coverage where we can.

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Other articles of interest: 

• Choosing the right insurance
• Can you insure a tiny home?
• Do you cover self contained units?
• Recreational features and retaining walls

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.

Our home insurance includes $3,000 of cover.

What will not be a Gradual Water Damage Claim?

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.

Learn more about the cause of damage here.

Hidden Gradual Damage Claim Example

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.

Your standard policy excess will then be taken out of your payout.

Related Topics:

• Is the cause of damage covered?
• How to claim for water damage
• What is covered and was it not with initio insurance?

Making a claim is easy.

All our claims are lodged online via your dashboard login.

A ‘Make a Claim’ option appears on the right-hand side menu of each policy. Select this, then follow the prompts that appear to complete the questions.

How long will initio take to settle my claim?

The time it takes to settle a claim depends on the type of claim and the complexity involved.

The good news? We process straightforward claims quickly – often within just a few days. To help us move even faster, please include as much information and supporting documentation as possible when you lodge your claim.

While some claims may take longer due to their nature or third-party involvement, our experienced team has seen it all. We’ll keep you informed every step of the way and work hard to get your claim resolved as soon as possible.

How do I follow the progress of my claim?

Once you lodge your claim, our team will get in touch to let you know what happens next.

You can track your claim through the Claims page in your dashboard, which reflects the same updates you’ll receive via email from your claims manager.

You can also use this page to upload additional documents, such as photos, quotes, or invoices, to support your claim.

If you need an update and there’s no new information on your dashboard, please give our claims team a call on 0800 763 929 or send us an email to [email protected].

What if I want to withdraw or cancel my claim?

To withdraw or cancel your claim, please reach out to the person you have been dealing with by phone or email.

You can learn more about our claims service here.

Watch our quick guide to making a claim

Related pages

• Explore our video library
• Can more than one excess apply to a claim?
• Claims – what is and isn’t covered?
• How to claim for accidental damage