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NZPIF and Initio have teamed up to provide Members with an extensive insurance offering that is specifically designed for rental properties. It covers the property itself and landlord risks
As a member of NZPIF you receive discounted pricing. Complete the property details below to get a quick quote. You can start the cover online with payment by credit card or bank transfer. The policy confirmation will be instantly emailed to you. It’s easy, which is the same approach Initio takes to claims.
Owning multiple properties can sometimes make insurance decisions tricky, especially for New Zealand homeowners who use their homes differently throughout the week. For example, you might have one home you stay in during the weekdays and another you visit mostly on weekends.
Understanding the right insurance policy for each property is crucial to ensure you’re fully covered.
The main difference between holiday home insurance and own home insurance lies in the occupancy and associated risks. Own Home insurance is for your primary residence where you would reside the majority of the home, not generally suitable if you leave it vacant for periods of 60 consecutive days or more. Holiday homes are not primary residences and are often empty for reasonable periods, increasing risks such as break-ins. Therefore, holiday home insurance has specific conditions and coverage tailored to these unique risks. If you aren’t using your holiday home all year round, you might rent it out between stays.
The following is a list of cover specific to each type of policy to help you determine which is the best policy for your property:
Holiday home insurance specific cover:
- Optional – Guests: Cover for damage, theft, and loss of rent if you host guests.
- Fixed contents: $20,000 standard cover for fixed contents at the home, with options to increase. This covers furniture that stays in your home permanently (not personal belongings). Cover is limited to the property address.
- Blocked pipes: Up to $1,000 to unblock an underground pipe, with no excess.
- Keys and locks: Up to $1,000 for replacing keys and associated locks, with no excess.
- Legal liability: $2 million legal liability costs if an accident damages other property or people.
- Optional – Loss of rent: Up to 12 months or $20,000 following damage to your house.
Own home insurance specific cover:
- Personal contents (available as an add-on to any Own Home policy): Replace or repair lost or damaged belongings, majority of items are insured on a new-for-old basis. Includes cover for contents including personal effects whilst at the property and temporarily removed anywhere in New Zealand.
- Temporary accommodation: $20,000 of alternative accommodation if your damaged house can’t be lived in.
- Reduced glass breakage excess: Reduced $250 excess for glass breakage claims.
What if you split your time equally between two homes?
If you divide your time equally between two homes, each property may require different insurance considerations. The home you use during the weekdays might need a standard home insurance policy, while the one you visit on weekends could be classified as a holiday home, or potentially you may need two Own Home (owner occupied) policies. It’s crucial to assess the specific usage patterns of each property to ensure you have the appropriate coverage. This should also take what belongings you use the majority of the time at each property into consideration.
Holiday home or rental?
Provided you use the home as your holiday home we can also offer the option of including short-term rental cover for you. If this describes your situation, select ‘Holiday Home – sometimes rented’ from the dropdown menu, and initio’s clever software will do the rest. If you’re not sure which cover is best for you – we’re here to help.
What special terms apply (regarding vacancy) on each policy?
Holiday Homes:
If no one has been living or holidaying at the home for a period of more than 60 consecutive days, and the home is recorded as a holiday home, expectations are that the following criteria can be met:
- the home is inspected inside and outside by you or a nominated person at least every 60 days, and
- the home and its grounds are adequately maintained, mail is cleared regularly and
- the water supply is turned off and
- all doors are locked and windows secured
If you are unable to meet those conditions, cover will continue with a higher standard excess of $5,000 applying to any claim. If however, a loss results from a break-in or attempted break-in at the home while it is fitted with an active, professionally-installed alarm or security system, then an excess of $1,000 applies.
Own Homes (primary residence):
If no one has been living at the home for a period of more than 60 consecutive days, we will only pay for loss that is:
- caused by fire, explosion or lightning, or
- covered under the ‘Natural disaster’ automatic additional benefit.
These terms can be reviewed upon request for special circumstances.
What if I only use the house for guests?
Under our cover, you need to use the house at least occasionally yourself over the course of a typical year. If you;
- don’t use the house yourself as your holiday home and as such also
- don’t keep personal items at the home, and
- it is only rented to short-term guests,
it is considered a commercial operation, similar to a motel. Our cover is domestic-based house insurance, and cannot be used if the above requirements are not met.
Are my personal contents covered under a holiday home policy?
Your personal contents items, like phones, jewellery, and laptops, won’t be covered under your holiday home cover as they should be protected by your contents cover at your main home. Belongings that remain at your holiday home, like furniture, TVs, and glassware, are covered. You can only insure your personal contents with initio as an add-on to an owner-occupied home you also insure with us.
What else can you do to ensure you choose the best insurance provider for your needs?
When researching and comparing insurance providers, it’s essential to evaluate them based on their reputation, customer satisfaction, and claims processing efficiency. Reading customer reviews and testimonials can provide valuable insights into real-world experiences with different insurers. Additionally, carefully reviewing policy details, such as coverage limits, exclusions, excess amounts, and additional features, is crucial. Don’t hesitate to ask questions or seek clarification on any confusing terms or conditions.
Key takeaways
- Tailored insurance coverage: Ensure each property has the appropriate insurance policy based on its usage, whether it’s a primary residence or a holiday home.
- Personal belongings: Secure and appropriately insure personal belongings at both properties, ensuring valuables are covered and managed efficiently.
- Maintenance and security: Maintain regular upkeep and robust security measures for both homes to prevent risks associated with extended vacancies.
- Be aware of policy restrictions/conditions relating to how long a home is vacant for.
- Thoroughly research and compare to make an informed decision.
USEFUL LINKS
Wondering how to get your first policy with initio started? This guide outlines the entire process from getting a quote to paying for your policy.
It takes you through the basic steps of quoting, customising and changing your cover, disclosing other information and making payment.
Once you have purchased your first policy with initio, you get access to a personal dashboard where you can modify and manage all your policies online.
Get an instant quote – enter property address
If your address doesn’t come up with the details you have entered, please use the blue option below the address box that then comes up showing as “I can’t find my address”. Clicking on that option will let you enter both the house number and street manually.
If your home is a new build in a particularly new street, potentially our database may not be able to locate the street, if so, please give our team a call to obtain a quote.
Select property use
If you’re uncertain about the type of property insurance that best suits your needs, visit our ‘Choosing Your Insurance‘ support page. There, you’ll find detailed information and guidance to help you make an informed decision tailored to your unique circumstances.
Customise quote
From here you can edit the details of the quote and customise as required. This can also be done from a home quote you have previously emailed yourself using the “restore” button.
Uncertain about the proper amount to insure your property for? We’ve designed a support page that walks you through the essential factors you need to consider regarding the sum insured.
Choosing the right amount of insurance for rebuilding your home is important. This amount should be what it costs to build your home again, not what your home is worth on the market. Don’t forget to include things like fences and swimming pools, and remember that building costs might go up over time. For example, if two neighbors with the same houses insure for too little or too much, they could lose money if their houses are destroyed. The right amount saves worry and money. Tools like the Cordel Sum Sure Calculator can help you figure out how much it might cost to rebuild your house.
If you’re wondering about how much excess you should have on your insurance policy, this support page covers some of the basics. Many property owners choose to cover minor losses themselves, avoiding insurance claims for low-value damages. If this applies to you, consider raising your excess to $1,000 or $2,000 to save on premiums. Think about what you’re comfortable claiming for and your financial risk tolerance when selecting house insurance. Under initio’s landlord insurance, tenants only cover the excess on careless damage, so assess your comfort level with potential out-of-pocket expenses, and set your excess to match your ability to absorb those costs.
Insurance Start Date? Enter the date that you would like the cover to start from should you proceed with purchasing. If it’s a new home, that should represent the sale’s settlement date. If you’re changing from another insurer, use your existing expiry date. Please note that we are only able to provide confirmed quotes for policies with effective dates of up to 30 days in advance. If the effective date you need is more than 30 days ahead, please wait till you are closer to that time to quote/apply.
Once you are happy with your customised quote, you can either;
- Email yourself a copy to save a copy of the quote
- Proceed to purchase the policy by selecting either the “annual” or “monthly” payment option at the bottom of the quote. Then follow the steps below.
Enter property details
A note about selecting start date of cover; ensure its the same date as the expiry/renewal date of your current policy to ensure cover continuity (or the settlement date if purchasing a new house)
Confirm your details
Complete online proposal form
Unsure if something may affect your cover? Disclose it
How to sign your application form
Use the device keyboard to type your name in full (as the person completing the form) in the space provided.
Review and make payment OR Application requires a review?
If the payment option isn’t offered it’s because a human will need to review the application for you. Please continue to submit the application for review and we will aim to come back to you within one business day to let you know the status of the request.
Otherwise, if the payment option is available, you can either
- proceed to purchase the policy OR
- if you’re not ready to commit or haven’t yet bought the property, you can choose to download a “letter of intent” on this page. The letter of intent simply outlines that based on the information provided we are able to insure the property when you’re ready.
ALL DONE! We will instantly email you confirmation documents
Want to add another property? Click “Add insurance”
Need to make a change to your policy?
Refer to our guide here. Our website is informative and the go to for accessing your account. No need for an app, our site is available in a user friendly format on all your devices.
Looking for more information? Our top five mistakes to avoid when insuring property article might help.
If you would like to see how initio compares to other popular New Zealand insurance companies, start here.
Adding or changing your policy
Looking to buy a Motor Vehicle Policy?
Our vehicle insurance is exclusive to our home policy holders. Once you become a home policy holder with initio you can easily add car insurance from your initio dashboard using the “vehicle insurance +” option.
Ready to begin your journey with initio?
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Useful articles
There can be unfortunate scenarios where you may have to pay your excess more than once when you make a single house insurance claim.
We try to make insurance transparent for everyone, but there are insurance conventions that we have to work with. Applying an excess per incident can be particularly annoying if you’re not aware of it, so here’s some help to mitigate any future frustration.
Firstly, what does house insurance usually cover?
You might already be familiar with this. House insurance covers sudden and accidental events – something unexpected that results in physical damage. This will extend to intentional damage by tenants if you have landlord’s insurance.
Your house insurance won’t cover gradual damage over time such as rotting weatherboards. Like humans, houses need maintenance to stay in working order. There is no sudden (or unexpected) event that’s causing the rotting, so there’s no insurance claim.
If you have some unexpected damage, you’ll then need to pay your excess before your insurance kicks in. However, it’s not as straightforward as it sounds – because the excess applies to each insurance ‘incident’ and not just to each claim.
So, what’s considered an ‘event’?
The ‘incident’ is the time and place the damage or loss occurred.
For example, if something caused a hole in the wall on two different days, and in two different rooms of the house, then those would be seen as different ‘incidents’ – even if the landlord found all the damage on the same day and lodged a single claim.
Each separate incident could result in a separate excess being payable on each. Which can be a nasty surprise.
Why does this have to apply?
Trust us, this is something we want to avoid, but there is a reason it applies.
If a landlord could group all bits of damage over a tenancy into a single claim with a single excess charge, you could claim on any little dents and damage around the house. House insurance would begin to look like a property maintenance cover, and ultimately the premiums and volume of claims would become astronomical, and make insurance unaffordable for everyone.
What does a ‘multiple incident’ claim look like?
The most common example we see is when a tenant moves out, and the landlord discovers they’ve left behind a lot of unreported damage – holes in walls, stains in carpets, doors with broken hinges etc.
The landlord then files a single claim for recovery of all the damage. However, if it’s clear the damage was from multiple ‘incidents’ over the course of the tenancy, an excess is applied to each one.
This means the insurance payout is either much lower, or the claim will not proceed if all the excesses exceed the repair costs.
Stains in carpet – a sight all too familiar for landlords.
Exceptions to the rule
It isn’t always the case that an excess will apply to each piece of damage. This is where it can become a little technical, and on a case-by-case basis.
Multiple bits of damage at the same time
Sometimes multiple incidents are considered to be the result of a single source event, and only one excess will apply.
- For example, if a tenant is given eviction notice, and decides to take this out on walls in anger before they leave; or if a party gets out of control, with predictable damage to doors, windows and carpets.
In these examples there is a single source that caused the event in an approximate time period. The interpretation of the source can be subjective, and every claim has its unique circumstances and will be considered on its own merits.
One excess per room
Policies are designed to cover damage resulting from a single event. When a ‘single event’ cannot be confirmed, most insurers apply an excess to each incident, meaning each stain/dent etc. However, at initio we believe this approach can be unfair, so we endeavour to apply one excess per room, per item of damage (one excess for wall damage in a bedroom, one excess for carpet damage in a room).
What about those ‘one excess’ advertisements?
Paying an excess per incident is standard practice. When insurers advertise that they charge only ‘one excess’, they are usually referring to a single event that causes damage across several policies.
For example, if a flood soaks your garage, car and some loose contents, you might only have to pay one excess – usually the highest. It’s one of those ‘check the fine print for the asterisk’ sort of promises.
What you can do to manage this risk
The best way to avoid all of this is to keep on top of the condition of your property with regular inspections. This will help identify bits of damage before they become widespread. If you’re recording the house’s condition for each inspection, you’ll also have a better idea of when damage was caused.
The best form of risk management is being a proactive landlord. Most landlord policy wordings include requirements, called landlord obligations – that you should get yourself familiar with.
Meeting these are a great way to reduce your risk; like screening tenants, monitoring rents, doing regular inspections and collecting a bond at the beginning of a tenancy.
Insurance is a two way agreement. The more you do to manage your risks, the better chance you have of avoiding an ugly multiple excess claim.
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Digitally savvy, human touch; The heart of initio
Since 2011 we have been redefining insurance. We are creating an insurance experience that customers love! At initio, we are all about creating better digital experiences for buying and managing insurance exclusively online. We’re best known for being the first insurance provider in New Zealand to quote and bind an insurance policy online. We consider ourselves to be the challenger brand to the domestic insurance market in New Zealand and as such we are on a mission to redefine the way insurance is managed and delivered to customers digitally.
At initio, we’re not just hiring; we’re on the lookout for thinkers, creators, and lively souls eager to influence the next chapter of insurance for our clients. If you’re brimming with creativity and ready to make an impact, you’re in good company.
Award-Winning Workplace
Yes, you read it right; we’ve got a brand-new accolade. initio has been named one of the Best Insurance Companies to Work for in Australia and New Zealand in 2023! If you want to be part of a company that’s officially recognised as a brilliant place to work, one that truly looks after its staff, then look no further. Come join our award-winning team and let’s transform those brilliant ideas into something that shines even brighter.
Open Positions
Here’s a sneak peek at our roles currently on offer. Can’t find the perfect role just yet? Keep swinging by – new opportunities land faster than you can say “Cheeseburger Fridays.”
You know some items need to be specified, but what about everything else that might already be covered?
We’ve put together a list of common “am I covered?” questions our customers often ask. It’s not a full list, so it’s always best to check your policy wording for the full details. If you’re still unsure, you can reach out to us directly – or even use an AI chat tool to quickly search your policy for specific items – just remember to always double-check the results.
Please note: the items below relate specifically to our house & contents insurance policy.
Are my solar panels and EV charger covered?
Yes — if they’re permanently installed at your home, your solar panels and EV charger are covered under your initio house insurance as part of the building. They’re insured for sudden and accidental loss or damage, subject to your policy’s standard terms and conditions.
If you have a portable EV charger that isn’t permanently wired in, it may be covered under your contents insurance instead, as long as it’s for personal use. Equipment used for business or income-earning purposes isn’t covered under standard house or contents policies and may require commercial insurance.
Do you cover outdoor sports equipment (like snowboards, skis, or surfboards)?
Yes — outdoor sports equipment such as snowboards, skis, and surfboards is covered under your initio contents insurance for sudden and accidental loss or damage, but payment limits apply. The policy has a maximum of $2,000 for any surfboard, windsurfer, paddleboard, kite surfer, surf ski, dinghy, kayak, or canoe (including their parts and accessories), unless the item is listed as a specified item on your policy.
If you have high-value gear, it’s a good idea to specify it on your policy to make sure you’re covered for its full replacement value.
If you own equipment worth more than the standard policy limit, it’s a good idea to specify it on your policy. This ensures the present value of that item is fully covered, rather than being capped at the policy limit.
Are my lawnmower and gardening equipment covered?
Yes, if you have initio contents insurance, your lawnmower, robotic mower and other domestic gardening equipment are covered as part of your “contents,” as long as they’re for personal use only. The policy specifically includes domestic garden appliances (such as lawnmowers, hedge trimmers, and similar tools) and their parts or accessories. They’re covered for sudden and accidental loss or damage, subject to your policy’s standard terms and conditions.
If your gardening equipment is used for business purposes — for example, if you run a lawnmowing service — it won’t be covered under your standard home contents policy. In that case, you’ll need commercial insurance to make sure you’re protected.
Is my home office equipment covered?
If you use a room in your home (or an outbuilding) solely as a home office for clerical work, our home policy covers that space, and your contents cover will extend to office furniture and equipment used for earning income—up to $10,000 at home and $1,500 while temporarily elsewhere in NZ. Learn more about when you need commercial insurance.
What about my spa pool or outdoor furniture?
Yes — if they’re portable and for personal use, your spa pool and outdoor furniture are covered under your initio contents insurance for sudden and accidental loss or damage, subject to the policy’s standard terms and conditions. Portable spa pools are included in the definition of “contents,” but fixed or built-in spa pools are considered part of the home and covered under your house insurance instead.
Outdoor furniture is also treated as contents, so it’s covered while at your home. However, like all contents, it won’t be covered if it’s used for business or income-earning purposes.
Is my medical equipment (including hearing aids) covered?
Personal medical equipment like hearing aids, mobility aids, and insulin pumps are automatically covered under our Own Home Contents policy. Learn more
If you’re ever unsure about whether something is covered under your policy, the safest option is to check your policy wording or get in touch with us. Our team can walk you through the details, explain any limits that might apply, and help make sure you have the right cover in place for your needs.
If you’re ready to start your journey with initio, you can get a quote online in just a few minutes — see your price, choose your cover, and get protected straight away. And if you ever need to make a claim, our simple online process through your customer dashboard means you can get it lodged quickly, without the usual paperwork headaches.
Ready to protect your house and contents? Get a quote in seconds and cover in minutes
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Liability cover in house and contents insurance protects you if you are legally responsible for accidentally injuring someone or damaging their property. In New Zealand, house insurance is not just about covering fire, natural disasters, or theft. The liability section can help pay legal costs and compensation if a claim is made against you. Understanding how liability cover works, what it includes, and when it applies can help you avoid significant out-of-pocket expenses.
Key takeaways in this article:
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Liability cover in house and contents insurance protects you if you are legally responsible for accidental injury or property damage.
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It can cover compensation payments and legal defence costs if a claim is made against you.
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Cover can apply at your home and, in some situations, anywhere in New Zealand.
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ACC covers medical treatment for injuries, but liability insurance may respond to other related claims.
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Liability cover is automatically included in initio house and contents insurance policies.
What is liability cover in home insurance?
Liability insurance covers legal costs and compensation if you are legally liable for unintentional damage to another person’s property or for injuries they sustain due to your actions or negligence. It typically includes:
- Personal liability: If someone is injured at your home and you are responsible.
- Property damage liability: If you accidentally damage someone else’s property.
- Legal defence costs: If a claim is made against you, your policy may also cover legal expenses.
When might you need liability cover? Here are some common scenarios:
1. A visitor is injured on your property
If a guest trips over a loose step, slips on a wet floor, or is injured by a falling object in your home, they may seek compensation from you. The New Zealand ACC scheme typically covers injury-related costs, but it has gaps, such as claims for pain and suffering, property damage (e.g., clothing or personal items), and mental injury. In these cases, your home insurance liability cover may help with costs and legal fees if legal action is taken.
2. Your tree falls on a neighbour’s property
New Zealand’s strong winds and storms can cause trees to fall. If a tree from your property damages your neighbour’s home, car, or fence, you could be held responsible if you failed to take reasonable care.
3. Your kids or pets cause damage
If your child accidentally kicks a ball through a neighbour’s window or your dog escapes and damages someone else’s garden, liability cover can help pay for repairs or compensation.
4. You run into a vehicle while riding your bicycle
If you cause damage to other vehicles or property whilst navigating the streets on your bike, liability cover will cover those costs.
5. Water damage to a neighbour’s property
If a plumbing issue in your home causes water to leak into the adjoining unit or property, damaging walls, floors, or belongings, you may be liable for the cost of repairs.
6. You accidentally cause a fire that spreads
Fires can quickly get out of control, whether from a kitchen accident, an unattended candle, or a backyard BBQ. If a fire originating from your home spreads to neighbouring properties – damaging fences, homes, or belongings – you could be held responsible. If a neighbour makes a claim against you for repair costs or compensation, your liability cover may help cover the expenses, especially if negligence is a factor.
7. You accidentally cause damage while staying elsewhere
You’re visiting a friend’s house, and you accidentally knock over an expensive vase or damage a piece of furniture. Or, while browsing in a shop, you accidentally break a fragile item. You might be charged for the damage, but your liability cover may help cover the cost.
What’s typically not covered under the Home/Contents liability section?
While liability insurance provides broad protection, there are exclusions, such as:
- Intentional damage: If you deliberately cause damage, you won’t be covered.
- Business-related liability: If the incident occurs as part of a business activity, you would need separate business liability insurance.
- Liability due to unlawful activities: Any damage or injury resulting from illegal activities is not covered.
- Liability due to operating a motor vehicle (is covered under the vehicle’s insurance)
Conclusion
The liability section of a home insurance policy in New Zealand is crucial for protecting you from unexpected legal and financial consequences. Whether it’s accidental property damage, injury that falls outside ACC cover, or an unforeseen incident, this cover ensures you won’t face costly legal battles or compensation claims out of pocket.
All initio products automatically include liability protection.
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House insurance protects you financially when the unexpected happens to your home, like a fire, flood, or sudden water damage. Without it, you’d need to pay the full cost of repairs or rebuilding yourself, which can be extremely expensive.
Most New Zealand homes are worth hundreds of thousands of dollars. Rebuilding or repairing after a disaster is not something most homeowners can afford out of pocket, and these expenses often come without warning.
That’s why it’s important to set the right sum insured – the maximum amount your insurance will pay to rebuild your home. You can learn more about how to work this out in our guide to calculating your sum insured.
Tempted to skip it to save money?
In tough financial times, it can be tempting to look for areas to cut back, and insurance can feel like an easy one to drop, especially if you haven’t made a claim in years. But it’s worth asking yourself:
If disaster struck tomorrow, could you afford to recover without insurance?
A single fire or flood can destroy years of financial progress. Even minor repairs can cost tens of thousands, and that’s before factoring in things like temporary accommodation. When you don’t have cover, you’re gambling with your biggest asset.
When you pay for insurance, you’re not just buying cover, you’re paying a provider to take on the financial risk for you, so you’re not left to carry it alone if something goes wrong.
Insurance isn’t about being pessimistic; it’s about being prepared.
You can reduce your premium without losing cover
If you’re looking for ways to keep your costs down, one of the most effective options is to increase your excess. This is the amount you agree to pay if you make a claim.
By choosing a higher excess, you’re taking on a bit more risk upfront, but it usually means you’ll pay a lower premium year to year. It’s a good option for homeowners who:
- Want to keep their cover but lower their premium
- Haven’t made a claim in a while
- Could comfortably pay a higher excess in the rare event they do need to claim
At initio, our quick quoting tool makes it easy to adjust your excess when you get a quote, so you stay protected, without paying more than you need to.
Insurance is about protecting what matters most
Your home is likely your most valuable asset. House insurance is designed to shield it from things you can’t plan for: fires, floods, storms, and earthquakes.
With initio, you’re covered for sudden and accidental damage, and you can lodge a claim online in minutes. It’s fast, flexible protection, backed by real people.
The bottom line: why you need house insurance
- Because disasters can happen to anyone at any time
- Because the cost to rebuild or repair is high
- Because insurance offers security when you need it most
- Because there are smart ways to stay covered without overspending
Still thinking it through? Get a quote online in minutes, or learn more about what our house insurance covers
Get a quote
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The answer is, it depends. There are circumstances where a tenant is considered liable, but this can be a little murky.
Let’s have a quick look at some key parts of the 2019 Residential Tenancies Act for insights into how you may experience it as a landlord.
Three things in the act that seem clear on paper.
1. A tenant can be held fully responsible for intentional damage
A tenant who intentionally causes damage can be held liable, and the landlord can ask them to pay for the damage. This seems like common sense.
If the landlord has insurance cover for deliberate damage, they can lodge a claim with their insurance company. The insurer will pay for repairs, and try to recover the costs from the tenant later down the track (if it’s possible).
2. A tenant can be held partially responsible for careless damage
If a tenant has ‘carelessly’ caused damage they can be held responsible, but only up to a maximum of the landlord’s insurance excess, or four weeks of rent (whichever is less).
But what is considered careless? We’ll get to that shortly.
In this case, the tenant can share in with the benefits of the landlord’s insurance cover.
3. A tenant cannot be held responsible for accidental damage
If a tenant accidentally causes damage the act considers that sometimes; these things just happen, and the damage is the landlord’s responsibility.
However, this falls into the same problem. It’s often not crystal-clear whether damage is ‘careless’ or ‘accidental’, nor is it something the landlord and tenant may easily agree on.
Many things that would ‘sensibly’ be considered careless, have been ruled by the Tenancy Tribunal as accidental – such as knocking over and leaving a hot iron to melt into the carpet.
So it’s a good idea to read through some recent Tribunal decisions – this may be helpful for future tenant discussions.
A case of melted carpet
The 2019 changes to the act are still relatively fresh and we could still see its interpretation change. This 2020 example gives an indication of the Tribunal’s approach to the difference between careless and accidental damage.
Braziers v Guttman 2020
A landlord (Braziers) took their tenant (Guttmann) to the Tenancy Tribunal to recover damage.
The landlord alleged a patch of carpet was melted, and claimed the cost of carpet replacement from the tenant for $772. The tenant admitted the carpet was melted when they accidentally knocked over a hot clothes iron.
To avoid any liability the tenant needed to prove that they didn’t carelessly or intentionally cause the damage, and that it was a reasonable accident.
The tribunal decided the carpet damage was accidental in nature, and did not have enough ‘careless’ elements to render otherwise. There was no liability against the tenant for repair costs or excess, and the landlord would need to pay for the repairs themselves, or through their insurance (and pay the excess).
Full details of the case: Braziers Ltd v Guttmann [2020] TT 4251455
Accidental Tenant Damage vs Careless Tenant Damage
As we’ve mentioned, the Act’s definition of the difference between accidental and careless damage could be better, and we are now seeing the results of this coming through the Tenancy Tribunal process. Here’s our overview:
Accidental damage is something caused by the tenant, but outside their control (for example, tripping and putting a knee through a wall).
Careless damage is caused through lack of attention or concern for the consequences (for example, leaving a stove on while you go to do something else).
But ultimately these guidelines will be up for subjective judgement. We expect to see more disagreements between tenants and landlords over who’s liable for damage. If you’re a landlord that’s applying to the Tenancy Tribunal to see what they think, you should be prepared to prove that damage was caused intentionally – or at least carelessly to avoid paying an excess.
What’s our position on all this?
We believe a clearer division between what is accidental and careless tenant damage is needed. If no clear interpretation can be made then ideally all tenant damage – whether careless or accidental – should be treated as the responsibility of the tenant (up to the smaller of the excess or four weeks rent).
This will save a lot of time and arguments. However, based on recent cases the Tenancy Tribunal doesn’t quite see it the same way.
Why can’t the tenant use their own insurance to pay for the damage?
That’s a good question.
In the past tenants were considered completely responsible. If the tenant had their own contents insurance the landlord could rely on this to pay for damage by the tenant. Almost all contents insurance policies will include the tenant’s liability to at least $1 million for accidental damage.
For many landlords, confirmation of contents cover became a condition of tenancy; if the tenant accidentally burnt the house down, the landlord’s insurance company could get the money back from the tenant’s insurance company.
Then a couple of big things happened.
1) Court of Appeal decision on Holla v Osaki
This landmark ruling established that landlords and their insurance companies could no longer recover the costs of damage from tenants. In this case, it was $216,000 worth of damage caused by the careless action of the tenant leaving an unattended pot cooking on the stove.
2) Residential Tenancies Act 2019
This act reversed the effects of the Holla vs Osaki decision and brought back some responsibility for tenants who cause careless damage. Responsibility, however, was limited to the lesser of the landlord’s insurance excess or four weeks rent.
It established that the tenant is fully responsible for intentional damage and that the tenant cannot rely on the landlord insurance policy for this. Remember that; as you would expect, a tenant’s contents insurance won’t provide cover for damage that’s intentionally caused.
Related Articles
This is a question we’re asked all the time.
To make it easy, we’ve built custom policy comparison tools so you can do a side-by-side comparison to other popular New Zealand insurance companies.
If your insurance company isn’t included or there’s something you want us to add, let us know.
Compare house insurance
House Insurance Comparison
What makes good house cover?
Policy benefit limits will be different between insurers. You should look out for benefits like Alternative Accommodation and Hidden Gradual Damage and see if they are enough for you.
Conditions between policies also vary, but are less obvious. For example, different conditions will apply to unoccupied houses.
Extra benefits like no-excess glass cover can add value to your policy. These are often optional benefits, so you should check they are included when comparing price and cover.
Price versus cover
Choosing the cheapest premium is not always the best option.
A bare-minimum policy may save you money now, but you might be disappointed by the cover when you need to make claim.
You should compare how much cover you are getting, with the premium you are paying.
Understanding your house insurance policy will ensure you are getting the right cover at the best price.
Compare landlord insurance
Landlord Insurance Comparison
Landlord protection
A landlord insurance policy will typically have additional cover that a standard house insurance policy does not include. These are often called a Landlords Extension or Landlords Protection.
This provides cover for loss of rent, accidental and intentional damage by tenants, meth contamination and landlord contents cover.
These are designed to minimise the risks of renting your property. For example if your property is smashed up by the tenants there is malicious damage cover. If your house is flood damaged and can no longer be rented there is further loss of rent cover.
The level of loss of rent, meth contamination and malicious damage cover is very important to consider when comparing landlord insurance policies.
The house itself
You should also consider the level of cover provided by a policy for the physical house itself.
Almost all policies will fully cover the big risks like natural disasters, floods and fires. The difference of a more comprehensive policy will be in the additional extensions on top of the basic cover.
Extension limits vary between policies. You should check that they are adequate for your requirements. Common extensions include Hidden Gradual Damage, Keys & Locks, Retaining Walls, and Pipe Blockage.
Comparing conditions of policies are also important. For example, you might need cover for pet damage at your rental.
Related Articles:
Smart Moves. Part I
Welcome to Smart moves: Insurance insights for property investors – a straight-talking series built from an in-depth interview with seasoned investor Graeme Fowler.
With decades of experience and a sizable rental portfolio under his belt, Graeme shares how he approaches insurance as a key part of successful property investing. From managing risk to avoiding costly mistakes, each article offers practical, no-fluff advice for landlords who want to protect what they’ve built.
The first article in the series explores why insurance isn’t just a checkbox – it’s a must-have for every property investor, no matter the size of their portfolio.
Why do you think insurance is essential for rental properties?
“Insurance is a must-have. I’ve been investing in property for years, and over that time, I’ve had to make a handful of serious claims, usually for accidental fires. A couple of those meant tenants had to move out for months. Without insurance, the financial hit would’ve been huge.”
Graeme says he always makes sure each of his rental properties is covered with a standard insurance policy. While some landlords opt to include extras in their cover, it’s not something he prioritises.
From initio: All our rental property policies come with full replacement cover for sudden and accidental damage, along with automatic protection for things that many other providers charge extra for. What does this include? Loss of rent, methamphetamine contamination, and liability is part of our landlord insurance automatically.. It’s all included as standard – no add-ons, no need to build your cover piece by piece. Just smart, all-in-one protection that actually reflects how landlords use their properties.
What have you learned from making claims?
“Things can go wrong every few years, and when they do, it’s usually not minor. The biggest issue I’ve had was a fire that forced the tenants out for quite a while. That’s not something you want to try to absorb out of pocket.”
Graeme says it’s important to treat insurance as protection, not just another expense. His advice to newer landlords: “Don’t assume you’ll never need it. Sooner or later, you will.”
From initio: We’re here to protect what matters – because when things go wrong, they can go really wrong. We’ve seen too many Kiwis caught out without the right cover (or any cover at all), left to absorb huge costs on their own. That’s where we come in. You pay us to take on that risk, so you’re not left footing the bill when disaster strikes. Whether it’s fire, flood, or the unexpected, we step in when it counts. That’s the whole point of insurance, and why getting it right from the start matters.
What’s your approach to excess and premium payments?
“I always choose the highest excess I can, usually around $2,000. That keeps my premiums lower. But if you only own a couple of properties, a lower excess might be the safer choice.”
Graeme also avoids monthly payment plans.
“I always pay annually as it tends to be cheaper in the long run. And if I know the earthquake levy’s going up, I’ll renew early and lock in the lower rates. That’s saved me thousands across my portfolio.”
From initio: Our quick quote tool puts you in control. You can clearly see the full cost of your insurance, broken down by annual and monthly payment options, before you commit. Want to tweak your excess or add contents cover? The quote updates instantly, so you can find the right balance for your needs and budget. It’s clever, fast, and designed to make complicated insurance simple.
Do you add extras, like loss of rent cover?
“Only if it’s already included. I don’t usually add it as an optional extra.”
From initio: Our cover is comprehensive from the get-go – we include the things that matter, without charging extra for them. Other providers might treat them as add-ons, but with initio, they’re built in.
Do location risks change how you invest?
“Not really. Natural disasters can strike anywhere. Cyclone Gabrielle caused damage to thousands of homes, but none of mine were affected. That’s just luck.”
Graeme says trying to pick a “safe” region isn’t always practical. “Instead of worrying about where it’s going to happen next, I just make sure I’m covered if it does.”
From initio: Our quick quote tool includes hazard indicators like earthquake and flood risk, so you can go in with eyes open. It draws on trusted data sources to reflect your property’s actual risk. And if something does need a closer look, our team will review it quickly, so your cover is based on expert judgement, not guesswork.
What are the most common insurance mistakes you see landlords make?
“Paying monthly when they could save by paying annually. Choosing a really low excess and then getting stung with higher premiums. And not doing regular inspections – big mistake.”
He recommends inspections every three months, minimum. “That way, if anything does go wrong, you’ve got a clear paper trail and fewer hassles at claim time.”
From initio: Knowing what’s covered under your landlord insurance can save confusion if you ever need to claim. This support article explains the key parts of your cover, so you know exactly what to expect.
Would you ever self-insure?
“Never. Even if I owned 500 houses and didn’t owe the bank a cent, I wouldn’t go without insurance. One fire, one flood, one quake – that’s all it takes.”
Graeme sees insurance as a safety net. “You work too hard to build a portfolio to risk losing it overnight.”
Final thoughts
For Graeme, the value of insurance is simple: it’s peace of mind.
“It’s not about whether something might happen. It’s about being prepared for when it does.”
Coming up next in the Smart Moves Series:
Getting smarter with excess, premiums and payments – how to optimise your insurance spend without cutting corners.
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
Related support articles:
1. About Initio
This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.
Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.
All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating
Contact Details
| Provider: |
Initio Limited |
| FSP Number: |
FSP523166 |
| Website: |
www.initio.co.nz |
| Phone: |
0800 763 929 |
| Email: |
[email protected] |
| Address: |
6 Garden Place, PO Box 319, Hamilton 3204 |
2. Your Financial Adviser
Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.
| Adviser Name: |
Suzanne (Suze) Ferry |
| FSP Number: |
FSP566306 |
| Contact Email: |
[email protected] |
| Qualifications: |
New Zealand Certificate in Financial Services (Level 5) |
| Experience: |
26 years in the insurance industry |
3. Nature and Scope of Our Advice
We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):
- Homeowner’s house and contents insurance
- Landlord and holiday home insurance
- Multi-unit rental property insurance
- Motor vehicle insurance
Limitations on Our Advice
Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.
Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.
Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.
Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.
4. Our Duties
Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:
- give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
- exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
- meet the standards of competence, knowledge, and skill set out in the Code;
- meet the standards of ethical behaviour, conduct, and client care set out in the Code;
- ensure that the information we make available to you is not false, misleading, or incomplete.
A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.
5. Fees, Expenses, and Commissions
Transaction Fees
For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.
Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.
Commissions
Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.
| Product Type |
Commission Rate |
| House and contents insurance |
22.5% of insurer premium portion |
| Motor vehicle insurance |
10.0% of insurer premium portion |
Claims Handling Fees
Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.
Referral Partners
Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.
Adviser Remuneration
All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.
6. Conflicts of Interest
We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:
- Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
- Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
- Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.
- Ownership Interest: Suze Ferry holds a shareholding interest in Initio. This means that Suze Ferry has a financial interest in the commercial success of Initio, including through the sale of Initio insurance products. This ownership interest could be perceived as creating an incentive for this adviser to recommend Initio products, or recommend a higher level of cover, in circumstances where that may not be in your best interests.
How We Manage These Conflicts
Initio manages these conflicts of interest in the following ways:
- Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
- We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
- Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
- All financial advisers undergo training on how to manage and disclose conflicts of interest.
7. Reliability Events
A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.
Neither Initio, nor Suze Ferry, has been subject to a reliability event.
8. What to Do If Something Goes Wrong
Internal Complaints Process
If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:
- Email: [email protected]
- Phone: 0800 763 929
- Post: The Complaints Manager, PO Box 319, Hamilton 3204
When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.
External Dispute Resolution
If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.
Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).
| Scheme: |
Insurance & Financial Services Ombudsman Scheme (IFSO) |
| Phone: |
0800 888 202 |
| Email: |
[email protected] |
| Website: |
www.ifso.nz |
| Post: |
PO Box 10-845, Wellington 6143 |
9. Privacy
We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.
For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.
10. Further Information
You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.
This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.
This information is also available in writing, on request.
This disclosure statement was prepared on: 15th March 2021
This disclosure statement was updated on: 31st March 2026
1. About Initio
This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.
Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.
All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating
Contact Details
| Provider: |
Initio Limited |
| FSP Number: |
FSP523166 |
| Website: |
www.initio.co.nz |
| Phone: |
0800 763 929 |
| Email: |
[email protected] |
| Address: |
6 Garden Place, PO Box 319, Hamilton 3204 |
2. Your Financial Adviser
Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.
| Adviser Name: |
Rene Swindley |
| FSP Number: |
FSP122087 |
| Contact Email: |
[email protected] |
| Qualifications: |
New Zealand Certificate in Financial Services (Level 5) |
| Experience: |
20 years in the insurance industry |
3. Nature and Scope of Our Advice
We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):
- Homeowner’s house and contents insurance
- Landlord and holiday home insurance
- Multi-unit rental property insurance
- Motor Vehicle insurance
Limitations on Our Advice
Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.
Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.
Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.
Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.
4. Our Duties
Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:
- give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
- exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
- meet the standards of competence, knowledge, and skill set out in the Code;
- meet the standards of ethical behaviour, conduct, and client care set out in the Code;
- ensure that the information we make available to you is not false, misleading, or incomplete.
A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.
5. Fees, Expenses, and Commissions
Transaction Fees
For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.
Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.
Commissions
Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.
| Product Type |
Commission Rate |
| House and contents insurance |
22.5% of insurer premium portion |
| Motor vehicle insurance |
10.0% of insurer premium portion |
Claims Handling Fees
Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.
Referral Partners
Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.
Adviser Remuneration
All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.
6. Conflicts of Interest
We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:
- Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
- Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
- Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.
- Ownership Interest: Rene Swindley holds a shareholding interest and directorship in Initio. This means that Rene Swindley has a financial interest in the commercial success of Initio, including through the sale of Initio insurance products. This ownership interest could be perceived as creating an incentive for this adviser to recommend Initio products, or recommend a higher level of cover, in circumstances where that may not be in your best interests.
How We Manage These Conflicts
Initio manages these conflicts of interest in the following ways:
- Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
- We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
- Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
- All financial advisers undergo training on how to manage and disclose conflicts of interest.
7. Reliability Events
A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.
Neither Initio, nor Rene Swindley, has been subject to a reliability event.
8. What to Do If Something Goes Wrong
Internal Complaints Process
If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:
- Email: [email protected]
- Phone: 0800 763 929
- Post: The Complaints Manager, PO Box 319, Hamilton 3204
When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.
External Dispute Resolution
If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.
Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).
| Scheme: |
Insurance & Financial Services Ombudsman Scheme (IFSO) |
| Phone: |
0800 888 202 |
| Email: |
[email protected] |
| Website: |
www.ifso.nz |
| Post: |
PO Box 10-845, Wellington 6143 |
9. Privacy
We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.
For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.
10. Further Information
You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.
This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.
This information is also available in writing, on request.
This disclosure statement was prepared on: 15th March 2021
This disclosure statement was updated on: 31st March 2026
Contents cover with initio protects the things you own inside your property, but what’s included (and how it’s covered) depends on the type of policy you have.
Whether it’s your own home, a rental, or a holiday home, the level of cover and the items it applies to are different.
This guide explains each type so you can choose the right cover and set an accurate contents sum insured.
Own home contents cover (Owner Occupied)
If you live in the home yourself, contents cover protects your personal belongings from sudden and accidental loss or damage – whether they’re inside the home, in transit, or temporarily away from home.
Key features:
- Repair or replacement – Most items are covered on a replacement basis, meaning we’ll repair or replace them with new (if it’s economical to do so). Items like clothing, books, and certain electronics are covered for their present value.
- Coverage away from home – Your contents are covered when temporarily removed, whether they’re in storage with prior approval, travelling anywhere in New Zealand, or on short overseas trips to Australia and the South Pacific (up to $5,000 per trip).
- Extra benefits – Includes cover for things like alternative accommodation, contents in transit, home office equipment, hidden gradual damage, keys and locks, frozen food, and stress payments after a total loss.
- Limits for certain items – Jewellery, watches, cash, and similar items have set limits unless specifically listed on your policy.
See our guide on what’s a specified item and when you should list it for more details.
Landlord contents cover
If your property is rented out, landlord contents cover is for the household items you own that stay at the property for tenants to use – for example, curtains, whiteware, or furniture. Cover is limited to the insured property address.
Key differences:
- Cover type – Items less than 5 years old are replaced with new equivalents; older items are covered for their present value.
- Location-specific – Contents are covered while they’re at the insured rental property or in transit to it (with prior approval if in storage).
- Tenant-related risks – Includes extended protection under your landlord’s policy for intentional acts, theft, or vandalism by tenants (up to $25,000 combined for the home and contents, within which the contents sum insured applies).
Learn more about landlord’s protection and intentional damage cover.
- Meth contamination – Covers loss to contents caused by contamination, within the overall limit for meth claims shown on your schedule.
See our meth contamination cover guide for details.
- Natural disaster – Covered on the same terms as the home, up to your contents sum insured.
Common landlord contents examples:
- Curtains, blinds, and other window coverings
- Carpets, rugs, and floor coverings not permanently fixed
- Light fittings and lamps that aren’t part of the building structure
- Whiteware like fridges, freezers, washing machines, dryers, and dishwashers
- Freestanding stoves or microwaves
- Furniture such as couches, beds, tables, and chairs (if the rental is furnished)
- Heat pumps or portable heaters that aren’t fixed to the property
- Outdoor furniture and BBQs provided for tenant use
- Small appliances like kettles, toasters, and vacuum cleaners
Examples of what’s not covered: Owner’s personal belongings, vehicles, watercraft, pets, or items not kept at the insured address.
Holiday home contents cover
Holiday home contents cover works much like landlord contents cover – it applies to the items you keep at the holiday home for your own use or for guests. Cover is limited to the insured property address.
Key points:
- Similar cover to landlord contents – Replacement for items under 5 years old, present value for older items and certain categories.
- Guest or short-term rental protection – If your holiday home is rented out at times, tenant-related intentional acts or theft may also be covered under the same landlord’s protection and meth contamination benefits.
- Seasonal occupancy rules – To maintain cover while the home is unoccupied, the home must be inspected regularly and basic security and maintenance steps followed.
See our holiday home insurance tips for keeping cover valid.
- Natural disaster – Covered up to your contents sum insured, with the same EQC top-up process as for landlord policies.
Common holiday home contents examples:
- Bedding, linen, and towels
- Kitchenware (pots, pans, utensils, cutlery, crockery, glassware)
- Whiteware (fridges, freezers, ovens, microwaves)
- Furniture for living areas, bedrooms, and dining rooms
- TVs, stereos, and entertainment equipment
- Outdoor furniture, umbrellas, and BBQs
- Hobby and leisure gear typically kept for guest use (e.g. board games, puzzles, books)
- Small appliances like coffee machines, blenders, and toasters
- Décor items like lamps, cushions, wall art
Examples of what’s not covered: Owner’s personal belongings, high-value sporting equipment not kept for guest use, vehicles, watercraft, pets, or items not kept at the insured address.
Tip: When setting your contents sum insured, think about what’s actually at the property. For your own home, this means everything you own. For a rental or holiday home, it’s just the items you provide for tenants or guests.
If you’re unsure where to start, use the CoreLogic contents calculator to help estimate the replacement value of your belongings.
If you’re still unsure, you can reach out to us directly – or even use an AI chat tool to quickly search your policy for specific details – just remember to always double-check the results!
Ready to begin your journey with initio? Start with a quote
Can I get contents insurance by itself?
It’s worth noting that initio does not currently offer stand-alone contents insurance. To get contents cover, it must be added to an active insurance policy for the same property. If you only need to insure your contents, such as when you’re renting or not insuring the home itself, initio is not able to provide contents cover.
Related articles:
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We know house insurance. Initio is NZ’s specialist in house insurance. We can insure your own home and contents, holiday home or your rental property.
Its risky being a landlord. With a policy designed just for property owners, Initio has you covered with replacement home insurance and landlord insurance.
1. About Initio
This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.
Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.
All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating
Contact Details
| Provider: |
Initio Limited |
| FSP Number: |
FSP523166 |
| Website: |
www.initio.co.nz |
| Phone: |
0800 763 929 |
| Email: |
[email protected] |
| Address: |
6 Garden Place, PO Box 319, Hamilton 3204 |
2. Your Financial Adviser
Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.
| Adviser Name: |
Carmen Jones |
| FSP Number: |
FSP1011244 |
| Contact Email: |
[email protected] |
| Qualifications: |
New Zealand Certificate in Financial Services (Level 5) |
| Experience: |
35+ years in the insurance industry |
3. Nature and Scope of Our Advice
We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):
- Homeowner’s house and contents insurance
- Landlord and holiday home insurance
- Multi-unit rental property insurance
- Motor vehicle insurance
Limitations on Our Advice
Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.
Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.
Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.
Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.
4. Our Duties
Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:
- give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
- exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
- meet the standards of competence, knowledge, and skill set out in the Code;
- meet the standards of ethical behaviour, conduct, and client care set out in the Code;
- ensure that the information we make available to you is not false, misleading, or incomplete.
A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.
5. Fees, Expenses, and Commissions
Transaction Fees
For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.
Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.
Commissions
Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.
| Product Type |
Commission Rate |
| House and contents insurance |
22.5% of insurer premium portion |
| Motor vehicle insurance |
10.0% of insurer premium portion |
Claims Handling Fees
Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.
Referral Partners
Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.
Adviser Remuneration
All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.
6. Conflicts of Interest
We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:
- Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
- Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
- Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.
How We Manage These Conflicts
Initio manages these conflicts of interest in the following ways:
- Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
- We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
- Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
- All financial advisers undergo training on how to manage and disclose conflicts of interest.
7. Reliability Events
A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.
Neither Initio, nor Carmen Jones, has been subject to a reliability event.
8. What to Do If Something Goes Wrong
Internal Complaints Process
If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:
- Email: [email protected]
- Phone: 0800 763 929
- Post: The Complaints Manager, PO Box 319, Hamilton 3204
When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.
External Dispute Resolution
If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.
Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).
| Scheme: |
Insurance & Financial Services Ombudsman Scheme (IFSO) |
| Phone: |
0800 888 202 |
| Email: |
[email protected] |
| Website: |
www.ifso.nz |
| Post: |
PO Box 10-845, Wellington 6143 |
9. Privacy
We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.
For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.
10. Further Information
You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.
This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.
This information is also available in writing, on request.
This disclosure statement was prepared on: 31st March 2026
1. About Initio
This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.
Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.
All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating
Contact Details
| Provider: |
Initio Limited |
| FSP Number: |
FSP523166 |
| Website: |
www.initio.co.nz |
| Phone: |
0800 763 929 |
| Email: |
[email protected] |
| Address: |
6 Garden Place, PO Box 319, Hamilton 3204 |
2. Your Financial Adviser
Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.
| Adviser Name: |
Jessica (Jess) Clark |
| FSP Number: |
FSP635990 |
| Contact Email: |
[email protected] |
| Qualifications: |
New Zealand Certificate in Financial Services (Level 5) |
| Experience: |
9 years in the insurance industry |
3. Nature and Scope of Our Advice
We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):
- Homeowner’s house and contents insurance
- Landlord and holiday home insurance
- Multi-unit rental property insurance
- Motor vehicle insurance
Limitations on Our Advice
Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.
Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.
Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.
Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.
4. Our Duties
Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:
- give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
- exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
- meet the standards of competence, knowledge, and skill set out in the Code;
- meet the standards of ethical behaviour, conduct, and client care set out in the Code;
- ensure that the information we make available to you is not false, misleading, or incomplete.
A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.
5. Fees, Expenses, and Commissions
Transaction Fees
For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.
Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.
Commissions
Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.
| Product Type |
Commission Rate |
| House and contents insurance |
22.5% of insurer premium portion |
| Motor vehicle insurance |
10.0% of insurer premium portion |
Claims Handling Fees
Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.
Referral Partners
Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.
Adviser Remuneration
All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.
6. Conflicts of Interest
We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:
- Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
- Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
- Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.
How We Manage These Conflicts
Initio manages these conflicts of interest in the following ways:
- Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
- We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
- Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
- All financial advisers undergo training on how to manage and disclose conflicts of interest.
7. Reliability Events
A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.
Neither Initio, nor Jess Clark, has been subject to a reliability event.
8. What to Do If Something Goes Wrong
Internal Complaints Process
If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:
- Email: [email protected]
- Phone: 0800 763 929
- Post: The Complaints Manager, PO Box 319, Hamilton 3204
When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.
External Dispute Resolution
If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.
Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).
| Scheme: |
Insurance & Financial Services Ombudsman Scheme (IFSO) |
| Phone: |
0800 888 202 |
| Email: |
[email protected] |
| Website: |
www.ifso.nz |
| Post: |
PO Box 10-845, Wellington 6143 |
9. Privacy
We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.
For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.
10. Further Information
You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.
This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.
This information is also available in writing, on request.
This disclosure statement was prepared on: 31st March 2026
1. About Initio
This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.
Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.
All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating
Contact Details
| Provider: |
Initio Limited |
| FSP Number: |
FSP523166 |
| Website: |
www.initio.co.nz |
| Phone: |
0800 763 929 |
| Email: |
[email protected] |
| Address: |
6 Garden Place, PO Box 319, Hamilton 3204 |
2. Your Financial Adviser
Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.
| Adviser Name: |
Marek Smit |
| FSP Number: |
FSP1004895 |
| Contact Email: |
[email protected] |
| Qualifications: |
New Zealand Certificate in Financial Services (Level 5) |
| Experience: |
9 years in the insurance industry |
3. Nature and Scope of Our Advice
We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):
- Homeowner’s house and contents insurance
- Landlord and holiday home insurance
- Multi-unit rental property insurance
- Motor vehicle insurance
Limitations on Our Advice
Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.
Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.
Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.
Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.
4. Our Duties
Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:
- give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
- exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
- meet the standards of competence, knowledge, and skill set out in the Code;
- meet the standards of ethical behaviour, conduct, and client care set out in the Code;
- ensure that the information we make available to you is not false, misleading, or incomplete.
A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.
5. Fees, Expenses, and Commissions
Transaction Fees
For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.
Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.
Commissions
Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.
| Product Type |
Commission Rate |
| House and contents insurance |
22.5% of insurer premium portion |
| Motor vehicle insurance |
10.0% of insurer premium portion |
Claims Handling Fees
Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.
Referral Partners
Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.
Adviser Remuneration
All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.
6. Conflicts of Interest
We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:
- Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
- Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
- Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.
How We Manage These Conflicts
Initio manages these conflicts of interest in the following ways:
- Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
- We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
- Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
- All financial advisers undergo training on how to manage and disclose conflicts of interest.
7. Reliability Events
A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.
Neither Initio, nor Marek Smit, has been subject to a reliability event.
8. What to Do If Something Goes Wrong
Internal Complaints Process
If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:
- Email: [email protected]
- Phone: 0800 763 929
- Post: The Complaints Manager, PO Box 319, Hamilton 3204
When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.
External Dispute Resolution
If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.
Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).
| Scheme: |
Insurance & Financial Services Ombudsman Scheme (IFSO) |
| Phone: |
0800 888 202 |
| Email: |
[email protected] |
| Website: |
www.ifso.nz |
| Post: |
PO Box 10-845, Wellington 6143 |
9. Privacy
We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.
For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.
10. Further Information
You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.
This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.
This information is also available in writing, on request.
This disclosure statement was prepared on: 31st March 2026
1. About Initio
This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.
Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.
All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating
Contact Details
| Provider: |
Initio Limited |
| FSP Number: |
FSP523166 |
| Website: |
www.initio.co.nz |
| Phone: |
0800 763 929 |
| Email: |
[email protected] |
| Address: |
6 Garden Place, PO Box 319, Hamilton 3204 |
2. Your Financial Adviser
Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.
| Adviser Name: |
Tobias (Toby) Pudney |
| FSP Number: |
FSP1004914 |
| Contact Email: |
[email protected] |
| Qualifications: |
New Zealand Certificate in Financial Services (Level 5) |
| Experience: |
11 years in the insurance industry |
3. Nature and Scope of Our Advice
We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):
- Homeowner’s house and contents insurance
- Landlord and holiday home insurance
- Multi-unit rental property insurance
- Motor vehicle insurance
Limitations on Our Advice
Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.
Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.
Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.
Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.
4. Our Duties
Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:
- give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
- exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
- meet the standards of competence, knowledge, and skill set out in the Code;
- meet the standards of ethical behaviour, conduct, and client care set out in the Code;
- ensure that the information we make available to you is not false, misleading, or incomplete.
A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.
5. Fees, Expenses, and Commissions
Transaction Fees
For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.
Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.
Commissions
Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.
| Product Type |
Commission Rate |
| House and contents insurance |
22.5% of insurer premium portion |
| Motor vehicle insurance |
10.0% of insurer premium portion |
Claims Handling Fees
Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.
Referral Partners
Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.
Adviser Remuneration
All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.
6. Conflicts of Interest
We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:
- Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
- Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
- Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.
How We Manage These Conflicts
Initio manages these conflicts of interest in the following ways:
- Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
- We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
- Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
- All financial advisers undergo training on how to manage and disclose conflicts of interest.
7. Reliability Events
A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.
Neither Initio, nor Toby Pudney, has been subject to a reliability event.
8. What to Do If Something Goes Wrong
Internal Complaints Process
If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:
- Email: [email protected]
- Phone: 0800 763 929
- Post: The Complaints Manager, PO Box 319, Hamilton 3204
When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.
External Dispute Resolution
If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.
Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).
| Scheme: |
Insurance & Financial Services Ombudsman Scheme (IFSO) |
| Phone: |
0800 888 202 |
| Email: |
[email protected] |
| Website: |
www.ifso.nz |
| Post: |
PO Box 10-845, Wellington 6143 |
9. Privacy
We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.
For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.
10. Further Information
You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.
This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.
This information is also available in writing, on request.
This disclosure statement was prepared on: 31st March 2026
If you have two dwellings/units on your property and the second one is permanently occupied by a family member or friend who lives separately to you, it’s important to have the right insurance in place to cover both homes properly.
What counts as permanent family use?
If your second dwelling—such as a granny flat, unit, or cottage—is lived in independently by a family member or a friend, then it’s considered a separate household. Even though they are part of your extended family or close circle, the fact that they live there permanently and independently means the second home/unit needs to be insured separately as another home/unit.
What insurance do you need?
For this setup, you’ll need two separate home (Own Home) insurance policies, one for each dwelling. This ensures that:
- Each home/unit is covered.
Begin by getting a home insurance policy for your first property and then proceed to obtain another quote for the second home/unit.
Buy house insurance
If you rely on rent from your family member for the second home/unit, we would recommend considering the Landlord policy for the second home/unit.
Own Home, Partially Rented insurance
To ensure both dwellings are protected with the right level of insurance you’ll need to set up one policy first, then start a new quote for the other. The good news? Getting covered online only takes a few minutes, so setting up two policies is quick and easy. If you already have house insurance with us and need to add a second policy, login to your dashboard and click on the + add house policy to begin the process. While getting a quote and buying insurance online with us might be easy, our cover is anything but basic. We offer comprehensive protection to ensure you’re fully covered.
How to add a policy for a second dwelling on the same title:
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Login to your dashboard and click on the ‘house insurance +’ button
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Search for your home address & ‘see full quote’
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On the full quote screen, click ‘back’ to edit the second dwelling’s details if needed.
.
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Once you go back, edit the property details, then click ‘continue’
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- This will adjust the quote to reflect the correct figures for the property.
Finish the quoting process from here per the usual process – Easy!
Not quite what you’re looking for? Maybe some of these other scenarios suit you better:
Running a business from home has become increasingly common, but knowing when your home insurance is enough – and when you need to look at commercial insurance – can be tricky. Here’s what you need to know.
Initio’s home products cover your residential home and any domestic outbuildings used for residential purposes, so long as they’re within your home’s residential boundaries.
Unless agreed otherwise, your policy will usually not cover any part of the home or any outbuilding used for business or commercial purposes, other than a home office.
Does house insurance cover your home office?
If you have a room in your home or an outbuilding that you use solely as a home office for clerical purposes then your policy will cover that part of the home. This is especially true if you’re simply using a space for paperwork, meetings, or computer-based work – something that doesn’t involve much physical activity or storage of stock.
If you have home contents insurance insured with initio, your own home contents cover is also extended to include office furniture and office equipment that is used for earning income. The furniture and equipment are covered for up to $10,000 whilst at the home and for up to $1500 whilst temporarily removed within New Zealand.
When you need Commercial Insurance;
For your Home
As soon as your home business goes beyond a simple home office or consultancy work, you’ll likely need a commercial insurance solution or special terms. If you’re storing stock, using specialised equipment, or running a business that involves physical labour (even if it’s within a garage or basement), it’s likely that standard home insurance won’t be enough. When you run any business from your residence (outside of a home office) we recommend getting in touch for specific advice. Depending upon the type and extent of the business, you may require commercial insurance. An example of such, would be a wood-working business run from the garage, whereas an occupation such as beauty therapy being run from one room can potentially be included in your home policy by agreement with the insurer.
For your contents
If you use tools or equipment from home to earn income, such as a builder’s or mechanic’s tools, it’s important to know that they are not covered under your standard home contents insurance policy. Even if you use these items for personal reasons, they require commercial insurance if they’re also used for work.
A common scenario is when tools are stolen from a car or home. You make a claim, but the insurer declines it because the tools are classified as income-earning equipment. Some may assume they can claim under their employer’s commercial policy, which often provides for ’employee tools.’ However, these claims are usually subject to a much higher theft excess, typically $2500.
To avoid this, it’s best to organise your own commercial insurance for tools and contents used for business purposes. Keep in mind, commercial policies come with higher excesses. Typically, these might look like:
- $500 standard excess
- $1,000 burglary excess (forced entry or exit)
- $2,500 theft excess (no forced entry or exit)
By getting the right cover in place, you can avoid surprises if something goes wrong.
Your liability
Our owner-occupied home policy covers your liability for activities you undertake as a homeowner and our landlord policy covers your liability for activities you undertake as a landlord or provider of short term holiday home accommodation . There is no cover provided for any liability arising from other business activities. If you own or run a business from home, you would need to arrange separate liability insurance cover through a commercial insurance provider or broker, which may include a public and products liability policy, and statutory liability policy.
Case-by-case
Ultimately, each business is different, and insurers will assess whether your business falls under home insurance or requires a commercial policy on a case-by-case basis. If you’re unsure, it’s always best to check with your insurance provider to make sure you’re properly covered.
In summary, once your business grows beyond a simple home office, it’s time to consider a commercial insurance solution to protect your assets and operations.
Useful links
Covering yourself for an unexpected event that leads to damage and financial loss is exactly what insurance is for. For house and contents insurance, you are most likely to think of your typical risks that might include fire, property flooding or theft of contents. However, insurance goes much further the ‘usual’ losses.
At initio we come across our fair share of unusual claims. As part of our ‘2019 in Review’ we go over our top 5 most unexpected claims – with a few honourable mentions. We are calling this the ‘Annual Initio Claims Awards’
Expect the Unexpected?
#1. Runaway Trailer
Sometimes damage can come from something outside of your control and your property. In late 2019, an initio customer in Te Awamutu was taken by surprise by a runaway trailer. Concrete was being laid at the building site next door and one the contractors loaded trailers became unhitched. The trailer was sent rolling down the hill and ended its journey by colliding the corner of our customers house and garage door.
This resulted in significant damage to the interior lining, exterior cladding and the garage door. Lucky for the insured their vehicles were not parked in the garage at the time, however a shelving unit and set of golf clubs were also destroyed. Saturday golf was put on hold unfortunately.
Total claim cost $19,187. In this instance, the concrete layers public liability insurer was pursued for the costs of this claim.
# 2. Colouring-in competition
When a customer rented their holiday home to short term guests they were not counting on their TV taking part in a kids colouring competition. The guest’s toddler thought they would hone their colouring in skills on the large flatscreen TV.
The artistic crayon drawings were cleaned off but the hard crayons left permanent scratches across the screen that could not be removed. A claim was made under their ‘landlord-holiday home contents’ which meant that the homeowner was able to replace their TV.
#3 . The Phantom Bather
An initio client with a multi-unit rental property was expecting it to be unoccupied for eleven days between tenancies. Two days into the property being untenanted, they received a call from their neighbour to say that there was water coming out of the property. It appeared an intruder had entered the property gone up the stairs and decided to run a bath.
Extensive water damage included saturated carpet upstairs that then seeped through the floor to downstairs. The ceiling in the kitchen and dining room downstairs collapsed, and significant water damage and clean-up was required through the property.
While we don’t know what the motives were for running the bath, we know that the landlord was happy to have an initio landlord insurance policy come to the rescue. With further costs still to come in the claim cost of repairs so far exceeds $32,000.
#4 . Rampant Puppies
After a tenancy had ended at an initio rental property early in 2019, an initio client lodged a claim for damage to the underfloor insulation. When repairers investigated the cause of loss, it appeared that the previous tenants family of puppies had found their way under the house, and shredded the flooring insulation from below.
Unlike many domestic insurance policies in New Zealand, the initio landlord insurance policy does not exclude damage caused by pets. After the landlord’s excess, Initio paid out $2,225.16 to repair and reinstate the insulation.
#5. Clumsy Chopping Board
While renting a holiday home, the guests popped down the road only to return to water running out the front door. They certainly didn’t expect to find water everywhere, a swelling to the kitchen, kitchen bench, cupboards, walls and floor.
It turns out that while they were out of the house a bread chopping board fell from its stand and landed on the sink tap. Not only did this turn the tap on, the awkward way it landed meant it also redirected the water away from the sink, running down the bread board and into the kitchen cabinets.
The aftermath damage resulted in water damage to the kitchen structures, damage to electrical components, and loss of rent payments as the sodden kitchen meant the property could no longer be rented. Total repairs amounted to $21,151.38 and are covered as sudden accidental water damage under the customers initio holiday home policy.
2019’s Honourable Vehicle v House Mentions
From AirBnB guests throwing a party to lightning strikes – we have had some interesting ‘honourable mentions’ lodged throughout the year.
Six claims were lodged with initio in 2019 for vehicle damage to properties – where a member of the public lost control of their vehicle and damaged our customers houses.
Three were involved in a police chase, whilst a further two were caused at the hands of drunk drivers.
Drivers who are responsible for damage caused are liable to cover the costs of repair. However in reality it’s difficult to get those responsible to accept liability (especially where it involves a police chase or drunk driving). Regardless of the driver accepting responsibility or being insured themselves (not that they would have insurance if drunk or in a police chase) initio provides cover for the damage caused to the property. We then pursue the driver.
The average claim for vehicle house damage in 2019 was $4,761.
‘Expect the Unexpected’ – You never know what could happen to your property. This is why it’s best to make sure you are covered for such unexpected and unusual events.
For more information on insuring different types see our insurance covers designed specifically for:
Home Insurance – for your own home, and contents.
Holiday Home Insurance – for the bach and for holiday homes that are also rented out (eg Bookabach, AirBnB)
Landlord Insurance – all in one house and landlord insurance, including loss of rents, malicious damage & more.
About Initio
This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.
Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.
All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating
Contact Details
| Provider: |
Initio Limited |
| FSP Number: |
FSP523166 |
| Website: |
www.initio.co.nz |
| Phone: |
0800 763 929 |
| Email: |
[email protected] |
| Address: |
6 Garden Place, PO Box 319, Hamilton 3204 |
Nature and Scope of Our Advice
We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):
- Homeowner’s house and contents insurance
- Landlord and holiday home insurance
- Multi-unit rental property insurance
- Motor vehicle insurance
Limitations on Our Advice
Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.
Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.
Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.
Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.
Our Duties
Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:
- give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
- exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
- meet the standards of competence, knowledge, and skill set out in the Code;
- meet the standards of ethical behaviour, conduct, and client care set out in the Code;
- ensure that the information we make available to you is not false, misleading, or incomplete.
A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.
Fees, Expenses, and Commissions
Transaction Fees
For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.
Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.
Commissions
Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.
| Product Type |
Commission Rate |
| House and contents insurance |
22.5% of insurer premium portion |
| Motor vehicle insurance |
10.0% of insurer premium portion |
Claims Handling Fees
Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.
Referral Partners
Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.
Adviser Remuneration
All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.
5. Conflicts of Interest
We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:
- Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
- Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
- Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.
How We Manage These Conflicts
Initio manages these conflicts of interest in the following ways:
- Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
- We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
- Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
- All financial advisers undergo training on how to manage and disclose conflicts of interest.
6. Reliability Events
A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.
Neither Initio, nor its financial advisors, has been subject to a reliability event.
7. What to Do If Something Goes Wrong
Internal Complaints Process
If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:
- Email: [email protected]
- Phone: 0800 763 929
- Post: The Complaints Manager, PO Box 319, Hamilton 3204
When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.
External Dispute Resolution
If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.
Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).
| Scheme: |
Insurance & Financial Services Ombudsman Scheme (IFSO) |
| Phone: |
0800 888 202 |
| Email: |
[email protected] |
| Website: |
www.ifso.nz |
| Post: |
PO Box 10-845, Wellington 6143 |
8. Privacy
We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.
For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.
9. Further Information
You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.
This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.
This information is also available in writing, on request.
This disclosure statement was prepared on: 15th March 2021
This disclosure statement was updated on: 31st March 2026
Has your home insurance premium changed recently? Your insurance cost can shift for a few reasons. Let’s break it down:
What makes up your insurance cost?
Your home insurance cost is made up of three things:
The Insurer Premium
This is the main part of your insurance cost. It reflects the level of risk associated with your home and a few key factors, including (but not limited to):
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Your sum insured (the amount your home is covered for)
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The location of the property
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Your chosen policy excess
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Global insurance costs (reinsurance)
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Current construction costs for materials and labour, which influence typical claim costs
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The frequency and severity of past or expected weather events
The Fire and Emergency NZ Levy
The Fire & Emergency NZ Levy is a Government charge that funds emergency response and firefighting services.
The Natural Hazard Insurance Levy
Previously known as the Earthquake Commission (ECQ) levy, the Natural Hazard Insurance (NHI) Levy is for a Government-provided insurance that helps with the cost of repairing or replacing residential homes that are damaged by:
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- Earthquake
- Tsunami
- Landslip
- Volcanic eruption
- Hydrothermal activity
So right now, what’s changed, and how does it affect my insurance costs?
- Rebuild value of your home: Each year, we may raise the amount your home is insured for. We do this to account for the increasing cost of building a house, and we call it indexation. If the insured value goes up, your policy cost will also go up. Remember, you’re the one who decides the final insured value of your home. You can always change or undo any updates we make. Any changes to this value will change the cost of your insurance. Learn more about changes to rebuild values.
- Premium rate changes: Each year, the cost of your policy might change. This happens because the pool of money needed to cover claims can vary. Insurance providers, like us, look at the number of claims made and the likelihood of future events, such as storms.
- If many people make claims, for example, after bad weather, the cost for everyone can go up, even if you didn’t make a claim. The money you pay helps create a fund that covers these claims, ensuring there is enough money to cover losses when needed. So, if there are more claims, the cost could increase for everyone.
- Fire and Emergency NZ levy change: From 1 July 2024, the FENZ levy rate will increase by 12.7%. Being a change from 10.60c per $100 sum insured (capped at $119.50 per house/living unit, and $21.20 for contents) to 11.95c per $100 sum insured (capped at $119.50 per house/living unit, and $23.90 for contents)
- Average Claims Costs: The average cost of each claim has increased in line with local materials and trade costs.
A further explanation on why premium rates are increasing
- Earthquake risks: New Zealand is earthquake-prone, it’s in the ‘ring of fire’, and is considered one of the highest quake-risk countries in the world. This affects premium rates, and reinsurers (the insurers of the insurers) charge more.
- Global insurance costs: It’s not just disasters in New Zealand that affect our premium rates. When something happens on the other side of the world, it impacts the reinsurers that provide cover to the New Zealand market
- Reserve Bank risk charge: Since its 2020 review, the Reserve Bank has applied an extremely high catastrophe risk charge to New Zealand insurers. Most insurers globally have to hold sufficient re-insurance or capital reserves to cover the risk of a 1-200 year catastrophe event. New Zealand insurers have to hold sufficient re-insurance or capital reserves for a 1-in-1000 year catastrophe event.
- 2023 Weather events: Big storms and floods mean more people need help from insurance, pushing up the cost. The quantity and severity have been steadily increasing over the last few years, with 2023 being off the chart. These events tend to have a longer-lasting impact on the amount and cost of re-insurance. As a result, the effects can take longer to reach the local market.
To ensure you have the latest updates on weather events, we’ll regularly update our blog with a link to the IAG Wild Weather Tracker report.
The graphic below, provided by IAG, provides more detail on the average New Zealand house insurance premium. Most of the recent premium increases are the consequence of the 2023 major weather events, reinsurance changes (insurance of the insurer) and increases in government levies:
Will I always be notified of changes?
Yes, you will. If there’s a change to your yearly or monthly insurance cost, we’ll let you know a month in advance. Generally speaking, your insurance cost will change each year.
Remember, you can also check your cover and make instant changes to things like excess and sum insured from your online dashboard.
We also display on your dashboard if there have been changes to your premium rates for any expiring policy, along with a visual cost breakdown specific to your policy. You can find that immediately above any “renew & confirm button” on your dashboard.
We aim to keep you in the loop so there are no surprises.
Will making a claim on my home or contents policy affect my premium?
No. Your premium won’t change just because you make a claim. Our home and contents policies don’t include a “no claims bonus” or discount, so your premium is not directly affected by your claims history.
See how we compare
Useful Links
How are house insurance premiums calculated?
Am I covered for natural disasters?
Why does my rebuild value change?
Top 4 mistakes people make when insuring their house
Why do Premiums Increase?
How to set up an account with a visa debit card
