Buying a home or property is a large part of the classic Kiwi lifestyle, and it tends to be the biggest investment most Kiwis will make in their lifetimes. When it comes to arranging house or landlord insurance, New Zealander’s want peace of mind for their asset – and so some property owners will seek advice from their insurer. However, others don’t – and those investors remain unaware of these avoidable insurance pitfalls. We’ve put together a list of the top five mistakes people make when purchasing house insurance, so you can avoid making them too.
1. Saving money on your premium by reducing the sum insured
On face value, it seems to make sense: reduce the sum insured to pay less premium. You could justify this by calculating the odds of having a total loss are slim… but therein lies the issue: what if you do have a total loss? Would you be able to rebuild the house (and its site improvements, such as driveways and fences) if the insurance proceeds were less than you needed? House insurance is about getting you back on track – replacing like for like, and ultimately, saving you from financial ruin by properly protecting your home and investment. When calculating your sum insured, you need to know you’ll be covered in a worst case scenario. If you are wanting to save on premium, insure the house for its correct replacement value and consider a high excess; which means you’ll still be covered for the big stuff while also saving money on your premium.
2. Not knowing the replacement value of the property
Some property owners assume that insurers know how much it will cost to replace their home. The reality is that while an insurer might provide a guide they don’t actually know your house like you do. Insurers and brokers are not valuers or quantity surveyors and they are not materials cost specialists. When you get an instant quote from initio, the sum insured is based on a standardised per square meter rebuild cost, but it’s important to know that all houses are different as some will cost a lot more than this, and in those cases the sum insured should be increased. It is also important that the property owner or landlord takes account of improvements such as driveways, fences, and pools when calculating the replacement value.
initio guides you to tools, such as online sum insured calculators, to assist property owners with calculating their rebuild value. If you’re still unsure, or you want to be precise consider engaging a quantity surveyor such as Construction Cost Consultants.
A large number of property owners are happy to avoid the claims process by not claiming for smaller losses, and just repairing or replacing low-value losses themselves. If this is you and you have a low excess (of say, $400), we recommend increasing this to $1,000, or even $2,000 to save money on your house insurance premium.
If you wouldn’t bother claiming for anything less than $1,000, why would you waste your money insuring it?
On the flip side, if you wouldn’t be comfortable contributing the first $2,000 each time you claim, then a lower excess will be best for you. It’s certainly personal preference but we encourage property owners to think about their own financial risk tolerance when purchasing house insurance. Remember that under initio’s landlord insurance policy the tenant is only responsible for covering the excess on careless damage claims, so don’t assume they will be paying the excess every time there is damage at your rental property.
Ask yourself; “How much of a dent to my cash flow am I able to cover myself?” This amount is what your excess should be.
4. Choosing the cheapest (or most expensive) policy
Cheap doesn’t necessarily mean good. To ensure your home insurance adequately protects your most valuable asset, you need to make sure that you have the right cover. If for example, where the property is tenanted, an own homeowner’s insurance policy won’t cover you for damage caused by tenants. By the same token, the most expensive policy isn’t necessarily the best either. You could be paying extra for a brand name, its marketing budget, or bells and whistles that are simply not relevant to your to situation and requirements (such as ‘hole in one’ compensation…), or you could be unknowingly paying a middleman to just clip the ticket.
It is recommended that you take the time to understand what you are getting for your money. A good place to start is your insurance policy wording. initio has recently launched a policy comparison tool on our homepage to makes things a little easier for the customer when deciding on their house insurance.
5. Thinking that house insurance should cover everything
There are some losses not covered by a house insurance policy. Some of these are un-insurable, like leaky house syndrome and acts of terrorism. Other risks might require an additional policy, such as a contract works policy if you are doing renovation work (removing the roof or exterior cladding for example). Gradual things like wear and tear are not covered either; an insurable loss needs to be caused by a sudden and accidental event; insurance is not designed to pay out every time the property needs maintenance work done or a tenant leaves the house messy and worn. These things are just part of the risk parcel of being a homeowner or landlord. Consider that if your policy covered every possible loss, the annual premium would be tens of thousands of dollars.
Remember, your insurance policy needs to work for your own peace of mind, so make sure you consider what risks you want covered, and what risks you are comfortable absorbing – keep the above tips in mind when making this decision.
Renovations may or not be covered by our house insurance depending on whether it involves structural or cosmetic work.
Cosmetic Renovations
Cosmetic renovations with no structural changes to your house are covered, and you don’t need to disclose this.
Examples of cosmetic renovations include re-painting, installing new carpet or replacing a toilet. If you’re unsure if your works are cosmetic, send us an email to [email protected] with full details of the works.
Structural Changes
If your renovation involves any kind of structural alterations to the property, construction-related losses won’t be covered by your standard house insurance policy. Any work that involves removing cladding or roofing will not be covered by your initio policy and will require a contract works insurance.
A Contract Works policy is required to insure the work and your home for construction related losses. This might include losses following water leaking in through exposed cladding or structural damage caused by the work itself. For our guide on when Contract Works cover is required, see here.
If you need contract works insurance, we’ve partnered with Builtin to offer you a suitable solution. Like initio, BuiltIn are underwritten by IAG so this means that you will have the same ultimate underwriter for the house and contract works risk, which is important. You should insure the scope of works (and the existing home with built in for construction perils). The contract works cover and your initio policy work together to cover standard and building risks during the period of construction.
Examples of structural changes include re-roofing, removing a load-bearing wall or an extension onto your home. If you’re doing work but you’re not sure if it’s structural, email [email protected] with full details of the scope.
If you own a property with two dwellings and rent them both out long-term (90 days or more per tenant), it’s important to have the right insurance to protect your investment. Whether the dwellings are separate or physically connected will determine the type of insurance you need.
What type of rental arrangement is this?
Two homes, same site
Both rented on long-term residential leases
What insurance do you need?
The right insurance depends on whether the dwellings are physically connected or separate:
If the dwellings are NOT physically connected (e.g., separate buildings on the same section):
If the dwellings ARE physically connected (e.g., one upstairs and one downstairs, or connected by a wall, roof, or garage):
You can use our Multi-Unit Rental policy, which provides coverage for both units under a single policy. you’ll need to state the number of self-contained dwellings at the address. This helps ensure you get the right level of cover for your property setup.
On the full quote screen, click ‘back’ to edit the second dwelling’s details if needed.
If both properties are the same size or the details are already correct, no changes needed.
Once you go back, edit the property details, then click ‘continue’
This will adjust the quote to reflect the correct figures for the property.
Finish the quoting process from here per the usual process – Easy!
You can get a quick quote and buy insurance online in just a few minutes with initio. Make sure you choose the right policy based on whether your dwellings are separate or connected. Getting a quote and buying insurance online with us is easy, but our cover is anything but basic. We offer comprehensive protection to ensure you’re fully covered.
Not quite what you’re looking for? Maybe some of these other scenarios suit you better:
Living near the coast has a lot going for it. Sea views, beach access and a relaxed lifestyle are a big drawcard. But coastal properties can also come with additional risks, which means house insurance is often one of the first questions buyers ask.
If you are buying, owning, or thinking about selling a coastal property, it helps to understand how insurers assess risk, and how to navigate coastal risks with confidence.
Key things you’ll learn in this article:
Whether coastal properties can be insured, and what insurers assess
How flooding, erosion and subsidence affect insurance decisions
Why some coastal homes require a customised solution
What long-term insurability could mean for owners and buyers
How to check if your property can be insured
Can I insure a coastal property right now?
In many cases, yes. Being close to the coast does not automatically make a property uninsurable.
Initio can insure a wide range of coastal properties, provided the risk profile meets our underwriting criteria at the time cover is considered. When assessing a coastal home, we look at factors such as:
proximity to the coastline or waterways
flood history or flood modelling for the area
exposure to coastal erosion
land stability, subsidence and coastal erosion risk
local hazard maps and council information
previous claims or known damage
You can obtain a quote online using the information available at the time and the details you disclose as part of the application. Depending on those details, the application may be able to be confirmed straight away, or it may be referred to our underwriting team for review before cover is confirmed.
In some situations, we may not be able to offer cover through our online model. This does not necessarily mean the property is uninsurable, but rather that it may require a more customised insurance approach that sits outside what initio is able to provide.
Does initio have concerns about erosion, flooding or subsidence?
These are some of the key risks we assess for coastal properties.
Flooding
Flooding is one of the most common risks for coastal homes, particularly where properties are close to estuaries, rivers, low-lying land, or stormwater outlets. Heavy rainfall, storm surge and rising sea levels can all increase flood risk over time. In some coastal areas, king tides can also contribute to higher water levels, particularly when they coincide with storm events.
Coastal erosion can occur gradually over many years, or suddenly during severe weather events. Properties built close to cliffs, dunes, or unstable shorelines can be more exposed to this risk.
Subsidence, land movement and coastal erosion
Coastal land can sometimes be affected by subsidence, erosion, or other forms of land movement, particularly where soils are soft, saturated, or influenced by changing groundwater or coastal conditions.
Subsidence and coastal erosion themselves are not covered under most house insurance policies. However, evidence of either can increase the likelihood of other insured events. For example, land that has experienced erosion or subsidence may be more susceptible to landslip or slope failure during large weather events, which can be covered under a house policy.
For this reason, insurers consider subsidence, land movement and coastal erosion together when assessing the overall risk profile of a property.
These factors do not automatically make a property uninsurable, but they do influence how insurers assess cover, pricing and long-term sustainability.
Why some coastal properties need a customised insurance solution
Initio is an online insurance provider. Our policies, pricing and underwriting are designed to work efficiently for a wide range of homes without the need for one-off or bespoke policy structures.
For most properties, this allows us to offer fast quotes, clear cover and easy ongoing management. However, some coastal properties have risk profiles that sit outside what can be supported through a standard online insurance model.
This can occur where a property has one or more higher or more complex risks, such as:
significant exposure to coastal erosion
repeated or severe flooding history
known land instability or subsidence
reliance on ongoing protective or mitigation works
access challenges that affect emergency response or repairs
Where a property has these characteristics, it may require a customised insurance solution tailored specifically to its risks.
Unfortunately, as an online insurance provider, initio is unable to offer customised or bespoke insurance solutions. This does not reflect the quality or care of the property itself, but rather the way certain risks need to be assessed and managed.
Our focus is on being upfront, consistent and clear, so customers can understand their options and navigate coastal risks with clarity.
Insurance decisions are based on the best information available at the time, including hazard modelling, claims experience and climate data. As this information evolves, insurance settings can evolve too.
For many coastal properties, any changes tend to happen gradually rather than all at once. Over time, this might mean things like:
fewer insurers offering cover in higher-risk areas
If a property already needs a more customised insurance approach today, it can be a sign that the risk profile is more complex than average. This does not mean insurance will suddenly become unavailable, but it is something buyers and owners may want to keep in mind as part of longer-term planning.
For some buyers, insurance is becoming another factor they consider alongside location, price and future maintenance.
If a property is more expensive or complex to insure, that may influence how some buyers assess value. That said, many coastal homes remain highly desirable, and insurance is just one piece of the overall picture.
Thinking ahead about insurability, maintenance and risk mitigation can help support both ongoing cover and future resale appeal. If you are purchasing at auction or under conditional agreement, our guide on obtaining a letter of intent explains how to confirm cover during the buying process.
Things to consider when buying or owning coastal property
If you are considering a coastal home, it can help to:
understand past flooding, erosion or land movement in the area
ask about previous insurance claims
consider how close the home is to the shoreline or waterways
think about any risk mitigation already in place
These steps can help you better understand both current and future insurance implications.
Auckland Council flood mapping example
How to check if your property can be insured
The best place to start is with a quote, or by obtaining a letter of intent.
If it is referred for review, our team will assess the details provided and explain the outcome, so you can decide on your next steps with clarity. When requesting a letter of intent, it is important to disclose all relevant information you are aware of as part of your due diligence, such as flood zoning, coastal erosion exposure, land stability concerns or council hazard classifications.
Insurance does not have to be hard, even when you are navigating coastal risks.
Written by Toby Pudney – initio’s support team lead.
Toby has been with initio since 2023 with 6 years of experience in the insurance industry. Credentials: ANZIIF New Zealand Compliance for Advisers (General Insurance Broking)
Landlord Insurance is designed specifically for rental property owners. It protects not only the house itself, but also the additional risks that come with renting to tenants. Unlike standard house insurance, landlord insurance includes cover for tenant damage, loss of rent and other landlord-specific exposures.
What is landlord insurance?
Landlord insurance is a specialised policy for long-term residential rental properties. It covers the physical building against events like fire, floods, and earthquakes, while also protecting landlords from risks that do not apply to owner-occupied homes.
While standard house insurance focuses on homeowner risks, landlord insurance extends cover to include tenant-related damage, rental income loss, eviction scenarios and other risks unique to renting out your property.
Quick summary
Landlord insurance covers rental property risks not included in standard house insurance.
Includes tenant damage, intentional damage and vandalism.
Covers loss of rent due to damage, eviction or abandonment.
Includes meth testing and cleaning cover.
Provides automatic landlord contents cover.
Designed for long-term residential rental properties in NZ.
Standard house insurance may cover accidental damage caused by tenants, but it does not cover intentional damage.
Landlord insurance protects you against both accidental and intentional tenant damage. This includes vandalism, theft, and deliberate damage such as holes punched in walls or damage from unruly gatherings.
Accidental tenant damage is covered up to your full sum insured.
Intentional damage, vandalism or theft is covered up to $25,000 per event.
Serious fire or explosion damage is covered above the $25,000 limit and up to your full property sum insured.
Cover applies to damage caused by your tenant, paying guests, or anyone occupying the home, including their guests.
Loss of rent cover
Rental income is essential for most landlords. If your property cannot be rented, you may still have mortgage payments and other costs to meet. Landlord insurance includes loss of rent protection in two main scenarios:
Loss of rent due to property damage
If physical damage makes your rental unlivable, we cover:
Up to 52 weeks of rent, or
The loss of rent sum insured you select, whichever comes first.
We automatically include $20,000 of loss of rent cover in all landlord policies, with options to increase this to $40,000 or $80,000.
This applies while repairs are completed following insured damage, such as flood or fire.
Loss of rent due to eviction or abandonment
Loss of rent can also arise when there is no physical damage. If your tenant:
Is evicted for non-payment after falling 21 days behind, or
Leaves without giving the required notice, we cover lost rent for up to six weeks.
This also extends to situations where tenants can legally cease rent payments under their tenancy agreement, such as when access to the property is prevented or essential utilities fail.
Meth contamination cover
Meth contamination is a serious risk for landlords in New Zealand. Cleaning a contaminated property can cost tens of thousands of dollars and may render the home unlivable for months.
Cleaning costs where a positive meth result is confirmed
Meth cover with initio
We provide up to $30,000 for meth testing and cleaning costs.
Loss of rent cover applies over and above this $30,000 limit. We will pay your weekly rent while the property is being cleaned, for up to 52 weeks or up to your selected loss of rent sum insured.
Many rental properties are furnished or partially furnished. This can include appliances, curtains, rugs, heaters and other non-fixed items. Some landlord policies require contents to be added separately. Our landlord policy automatically includes contents cover.
How much landlord contents cover is included?
We include $20,000 of landlord contents cover as standard. This is the minimum level and cannot be reduced.
If your property is more fully furnished, you can increase this to $40,000 or $60,000.
What is covered?
Cover applies to fixtures and fittings and landlord-owned contents included in the tenancy.
Items five years old or less are replaced with new items.
Items over five years old are paid at present value.
This does not cover your personal belongings.
Frequently asked questions about landlord insurance
Can I reduce the $20,000 landlord contents limit?
No. The $20,000 landlord contents cover is automatically included as the minimum under our landlord policy. This amount cannot be reduced. You are covered for landlord contents up to that figure as standard, with options to increase the limit for more fully furnished properties.
Is furnished property covered under landlord insurance?
Yes. Whether your rental property is furnished or unfurnished, it is covered.
Landlord insurance automatically includes cover for landlord contents such as non-fixed appliances, curtains, rugs and heaters. If the property is fully furnished, you can increase the contents limit to ensure everything is adequately protected
Does landlord insurance cover intentional tenant damage?
Intentional damage, vandalism or theft by tenants is covered up to $25,000 per event. In cases of serious fire or explosion damage, cover can extend beyond this limit and up to your full property sum insured.
More information about landlord insurance
Explore these additional articles that may interest you:
There’s a lot of talk about the ‘pitfalls‘ of renting your home out on airbnb or bookabach. Local councils are cracking down on short-term rental property owners, with the result being that your profitability suffers. Like any business, increases in costs can be managed and in many cases have to be passed on. There are also anecdotal claims that the risks associated with rental your home to guests short term are uninsurable. Some risks, and expenses, can be managed by choosing the right insurer and the right insurance policy.
What’s the problem with insurance?
Most insurers will tell you that your domestic house and contents policy isn’t suitable for home sharing situations. Or that inviting strangers into your home for money could invalidate your insurance. Others might tell you that you are insured, but come claim time, you’ll discover there was no cover. For example your standard home contents policy, won’t cover you for items stolen by individuals allowed in the home. And your standard home policy, won’t cover you for intentional damage caused by guests. That means that you’re not covered if anyone who has a key (or their guest) steals, or damages your stuff – including your home.
A landlord insurance policy will usually provide cover for the above, but generally these come with a bunch of landlord obligations. Landlord obligations include things like reference checks, credit checks and written inspections between tenancies. Without upholding your obligations; which are generally impossible for holiday rentals, the insurer could deny your claim.
What’s the solution?
To circumnavigate these issues, most short term holiday accommodation providers recommend a commercial insurance policy. But these can cost thousands of dollars, and are not always necessary. What you probably don’t realise is that there is an insurance policy designed specifically forholiday homes that are rented out. The initio insurance policy for landlord and holiday home owners.
In addition to providing cover for your holiday home and its contents, the policy extends to cover intentional damage and theft by paying guests. Unlike other insurers, when the home is occupied by guests as a holiday home, the landlord obligations do not apply. Loss of rents is also covered, with the policy allowing for the lost income to be calculated using a combination of factors. These include confirmed future bookings, and rent received in the 12 months preceding the loss or contamination damage. As for meth contamination, it is covered in connection with the manufacture or distribution of methamphetamine at the home.
In the past, there has been confusion on whether your holiday rental will be covered for Earthquakes and Natural Disaster. To clarify, provided that it is your intention to live in, or holiday, at the home, then you will be covered under the EQC Act (of which you pay an EQC levy as part of your insurance). If the home is purely a commercial enterprise that is not used personally by you or your family, you will need a commercial insurance policy (which will cost a lot more).
What about liability?
Health and safety legislation applies to short-term rental properties in the same way that it applies to other landlords. You have a duty to make sure your property is safe and healthy. This includes installing smoke alarms and providing protective gear for any equipment that might be used by guests, such as lifejackets for kayaks. It also means that you, as a landlord, could be deemed liable for an injury or accident suffered by a guest suffers at the property.
Some home sharing services will provide property owners with a limited amount of liability cover. However if you are renting your property you should make sure you have adequate public liability insurance in place. The initio policy provides $2 million of cover including bodily injury and defence costs.
What about the provided insurance / guarantee?
The Airbnb Host Guarantee is not an insurance policy. If you do a quick search in google, you will soon see that claiming is not very easy or straightforward.
BookabachOwner Protection provides an actual backup insurance policy, which is locally supported. The policy covers owner’s liability and property damage protection and is underwritten by NZI (IAG New Zealand Ltd). However, for cover to apply, the guest booking must be booked and paid online through Bookabach. A current house insurance policy also needs to be in place for the Bookabach backup policy to apply.
It’s always best to have a proper holiday home insurance policy in place in the first instance. Find out more about the initio insurance policy for landlords and holiday home owners, including an instant quote,
Here’s what you need to know to insure your main home if it’s also rented to short-term guests.
What can be covered? A shared primary residence
If the house is your primary residence, we can cover your own home that’s also rented with our Own Home Rented product. However, it’s required that you share the use of the property with guests.
The two most common scenarios for renting your own home are:
You rent out part of your home to short stay guests while you still live in the property (e.g. a room or downstairs).
You rent out you whole house to short stay guests when you’re not living there (e.g. you go overseas or stay in your holiday home).
If your house is not your primary residence, it may be able to be insured as a Holiday Home also Rented. Learn more about insuring holiday home rentals here.
Essentially, our guest rental cover only applies to properties that have shared use (at-least occasionally) by the owner. We’ll explain why next.
What can’t be covered? A dedicated short-stay accommodation
We can’t insure a dedicated short-stay living unit that’s only used for guest accommodation. When a unit is used solely for guests it becomes a commercial property – similar to a motel.
The EQC’s $150,000 of natural disaster cover will not apply to a ‘dedicated short stay’ as they are considered commercial risks. Our domestic house insurance policy assumes part of the natural disaster risk is covered by the EQC. A dedicated short stay rental therefore needs to be covered under a commercial material damage policy, where the insurer covers 100% of the natural disaster risk.
Please note the definition of a dedicated short stay property is any living unit that is set up purely as a commercial enterprise and the owners don’t use it or intend to use it for their own purposes (or for somebody else to use it as their home).
Is a secondary unit at my house covered under my house insurance policy?
Yes, as long as it’s not a dedicated short stay unit – and it’s used by yourself (at least occasionally) as part of your own home.
It’s common for people to have an additional self contained living units at their houses. It’s common to have a separate unit at the back of the house, or a downstairs living unit with its own access. Often these are rented to short term guests (via Airbnb or BookaBach), or longer term boarders for additional income.
If you don’t use this unit yourself (at least occasionally) then we can’t insure it together with the main house.
If the unit is used purely for short terms guests a commercial policy is required. If the unit is simply rented to tenants you’ll need a separate landlord insurance policy for it.
Short Stay Airbnb Unit Example
If the additional unit is used by both the owner and short-term guests we can provide cover under our own home rented.
If the additional unit’s use is shared by the owner (themselves or family) as well as short-stay guests, it can be covered under our Own Home Rented product.
When the living unit is solely rented to guests and not utilised by the owner, it is deemed a dedicated short stay. EQC cover does not apply, and we can’t provide cover.
An example of this is where the unit is used for children when they return home from university and other times the unit is rented to short stay guests. This can be insured under a Own Home Rented policy on the main house.
Renters or Boarders Unit Example
If the rental unit (for example downstairs unit) is only used for a longer term tenants (i.e. more than 90 days) or boarders and not utilised by the owner themselves – this can’t be insured under a single Own Home Rented policy. In this instance, a separate Landlord Insurance policy is required to cover the self-contained rental unit.
If you need help working out which insurance or combination of insurance is best for you, see our home & income insurance page.
What is Covered?
Our Own Home Rented product takes all of the standard owner occupied policy features, and includes extra cover for the risks of renting. You can also choose to add personal household contents cover. You can get the peace of mind that your property and contents itself is covered, while the risks associated with renting your house to guests is insured.
Generally a standard house insurance policy won’t cover guest risks, so it’s important for owners to get the right cover. The extras included in the own home rented cover includes:
What happens if my house is too damaged and can’t be lived in?
If your house is too damaged to be lived in (like a fire or flood) there is cover (up to $20,000) to go towards moving into a temporary house while repairs are completed. If you also get regular rental income from guests there is cover for your lost rents you would otherwise have got if your house wasn’t damaged.
We provide $20,000 of loss of rents cover for free, with options to increase to $40,000 or $80,000. Both loss of rents and alternative accommodation have a payout period of 12 months.
The Loss of Rent calculation will take account of future actual guest bookings that are cancelled, and expected bookings based on the same period in the previous year. If you are new to the home and income game then we will use short-stay occupancy rates in that particular region to estimate the loss. If you have a boarder or tenant with a fixed weekly rent then that amount will be used.
The policy aims to put the owner in the same financial position they were in before the loss, by paying for the repair costs and lost rental income – all while paying for the owners temporary accommodation costs.
Insurance policies can look complicated at first. They usually contain multiple sections, detailed explanations, and specific defined terms.
This is intentional. Insurance policies are legal contracts designed to clearly explain the agreement between the insurer and you, the customer. Insurance policies are detailed by design so that both the insurer and the policyholder understand the agreement.
They set out what is covered, what is not covered, and how claims will be assessed. Taking the time to review your policy schedule, policy wording, and definitions can help you understand how your cover works before you ever need to make a claim.
Once you understand the structure of a policy, it becomes much easier to navigate.
Key takeaways
Insurance policies explain what is covered, what is excluded, and how claims are settled.
Your policy wording and policy schedule should always be read together.
Key sections to review include cover (sometimes known as the insuring clause), exclusions, limits, excess, and policy conditions.
AI tools can help explain insurance wording, but the policy document itself is always the final authority.
If anything is unclear, it is always best to confirm details with your insurance provider.
Who this guide is for
This guide is designed for New Zealand homeowners and landlords who want to better understand their insurance policy. Whether you are reviewing your cover for the first time or simply want to understand how your policy works, knowing where to find key information in your policy schedule and policy wording can make the process much easier.
Understanding your policy schedule and policy wording
Your insurance policy is made up of two key documents that work together: the policy schedule and the policy wording.
The policy schedule contains the details specific to your cover, such as the insured address, sum insured, excess, and any specified items.
The policy wording explains how the policy works. It outlines what events are covered, what exclusions apply, and the conditions of the insurance. Both documents need to be read together to fully understand your cover.
Policy schedule
This is the personalised summary of your cover. It includes details such as:
the insured risk (property address or vehicle details)
the type of cover you have
the sum insured
your excess
The schedule tells you what applies to your specific policy.
Policy wording
The policy wording explains how the insurance works. It includes the rules of the policy, such as:
what events are covered
what exclusions apply
how claims are settled
policy conditions and definitions
Think of it this way: The schedule shows your cover. The policy wording explains how that cover works.
The key sections to check in an insurance policy
Insurance policies follow a fairly consistent structure. Instead of reading every page straight away, it can help to focus on the sections that explain the most important parts of the cover.
1. What you are covered for
This section explains the events the policy protects you against. For example, many home and contents policies cover sudden and accidental loss or damageto your property that occurs during the period of cover.
This part of the policy (sometimes referred to as the insuring clause) outlines the main purpose of the cover and the types of incidents that may trigger a claim.
When starting an insurance claim, in the first instance, you need to provide enough information to support that the claim is covered by the policy (called a prima facie claim). In the above situation, you’d need to demonstrate that something caused 1) sudden and unintended, 2) loss or damage (which is often defined as physical loss or physical damage), 3) to property which belongs to you, and 4) that the damage occurred during the period of cover. This is why you need to understand each of the criteria of what you are covered for.
2. What you are not covered for
The exclusions section explain situations where cover does not apply. These sections are important because they define the boundaries of the cover. Common exclusions across many insurance policies include:
wear and tear or gradual deterioration
corrosion or rust
damage caused intentionally
pest or vermin damage
damage linked to construction work
These exclusions help both the insurer and the policyholder understand where the cover begins and ends.
3. What the policy will pay
This section explains how claims are settled. Depending on the policy, the insurer may:
repair the damage
replace the item
pay the present value of the item
This section will also outline limits that apply to certain items or categories.
For example, some policies set maximum limits for jewellery, bicycles, or collections unless they are specified separately on the policy.
4. Policy conditions
Policy conditions explain the responsibilities that come with having insurance. These include obligations such as:
taking reasonable care to prevent damage
notifying the insurer if circumstances change
providing accurate information when applying for cover
notifying the insurer as soon as possible after a loss
additional obligations of landlords
These conditions help ensure that the policy continues to operate as intended.
5. Definitions
Insurance policies often use defined terms to keep the wording clear and consistent throughout the document. Words with specific meanings are usually bolded in the policy and explained in the definitions section of the policy wording.
Even words which have ordinary meanings, may be defined by the policy so it’s important to read through the definitions section for each policy, even for words you’re familiar with. For example “Home” has an ordinary everyday meaning, but the policy may provide its own definition to describe that when the policy says “Home”, it means: the dwelling plus fences, pools, utility connections and so on.
Some common insurance terms you may come across include:
Excess:The amount you must contribute towards each incident before the insurer pays the remaining cost.
Sum insured: The maximum amount the insurer will pay to repair or replace insured property after a covered loss.
Incident: something that occurs at a particular point in time, at a particular place and in a particular way.
Accidental: Unexpected and unintended by you as the policyholder.
Hidden gradual damage: hidden rot, hidden mildew or hidden gradual deterioration, caused by water leaking from any internal: tank that is plumbed into the water reticulation system of the home and is permanently used to store water; or water or waste disposal pipe installed at the home.
Present Value: the estimated reasonable cost to replace an item with an item in New Zealand that is of equivalent age, quality and capability, and is in the same general condition
Reviewing these definitions can help make the rest of the policy wording easier to understand.
The initio glossary page also explains many other general common insurance terms in more detail. Note that if a policy provides a specific definition, then that prevails over any other general definitions.
Three common mistakes people make when reading their insurance policy
When people first look at their insurance documents, it’s common to focus on the parts that feel most relevant at the time. However, this can sometimes lead to important details being missed.
1. Only reading the policy schedule
The policy schedule shows details specific to your cover, including the insured address, the sum insured, and the excess.
While this information is important, the schedule needs to be read alongside the policy wording, which explains how the cover works and what conditions apply.
2. Skipping the exclusions
Exclusions explain situations where the policy does not apply. They are not there to catch people out, but to clearly define the boundaries of the cover.
Understanding the exclusions helps you know what types of loss the policy is designed to protect against, and where other solutions or maintenance may be required.
3. Not checking the definitions
Insurance policies use defined terms that have a specific meaning within the policy.
These words are usually bolded, and are explained in the definitions section of the document. Checking these definitions can make the rest of the policy wording much easier to understand.
Taking a few extra minutes to review these sections can make a big difference in understanding how your insurance works and what you can expect if you ever need to make a claim.
Using AI to help understand insurance wording
Insurance policies contain detailed explanations and legal language. Because of this, many people now use AI tools to help explain certain sections.
For example, you might paste a paragraph from your policy wording into an AI tool and ask it to explain the meaning in simpler terms.
This can be useful for understanding unfamiliar phrases or summarising longer sections of the document.
The policy wording itself remains the official document that defines the cover. If anything appears unclear, the policy wording and your insurer’s guidance should always take priority.
Where to find your policy wording
If you want to review the full details of your cover, you can access the policy wording alongside your policy schedule.
If you are unsure how a section applies to your situation, it is always a good idea to contact your insurance provider for clarification.
Frequently asked questions
Do I need to read my entire insurance policy?
Many people start by reviewing the key sections that explain what is covered, what is excluded, and how claims work. While you don’t have to read it all in one sitting, it is important to have a clear understanding of what you are and aren’t covered for.
What is the difference between the policy wording and the schedule?
The policy wording explains the general rules of the insurance cover which apply to everyone with the same type of policy.
The policy schedule contains the details specific to your policy, such as the insured address, limits, and excess.
Can AI explain my insurance policy?
AI tools can help summarise or explain complex wording in simpler language. However, the policy wording itself is always the final authority, and you should confirm any important details directly with your insurer.
What is the most important part of an insurance policy?
The most important sections to understand are:
what you are covered for
what you are not covered for
your excess
the sum insured
policy conditions
Together these explain how the cover works and what you can expect if you need to make a claim.
If you are ever unsure how your policy applies to a situation, it is always best to check the policy wording or contact your insurance provider for clarification.
Written by Hannah Gabbie, Head of Claims at initio.
Hannah has been with initio since 2023, and has more than a decade of experience with fire and general claims. She is a Senior Associate CIP of ANZIIF, and has a Diploma of Loss Adjusting.
If you’re serious about property investing, it is likely that you have a block of units in your portfolio. We have the insurance policy designed to keep premiums low and help your yeilds.
Initio provides an all-in-one cover for your residential multi unit rental property (up to six attached units) and the extra risks you take on as a landlord, such as one of the tenants deliberately damaging your property.
IMPORTANT This is a summary of the policy only. Please refer to the policy wording for full details of cover
What if I live in one of my units?
The Multi-Unit Rental policy is designed for rental properties. If you own a block of units and personally reside in one unit, this will need to be insured individually as an owner occupied home. This way you can include cover for your contents and personal effects, and get premium savings on your own home. The remainder of the units in the block can be insured either together or individually.
What if it is a Body Corporate?
Sorry we are unable to insure properties which are part of a Body Corporate.
How do I note the ownership of each unit?
If each unit has a different owner the unit will need to be insured individually. To qualify for the multi-unit policy the units must have the same ownership and be under the same roof.
How many units can I insure on one policy?
You can insure up to SIX attached residential units under a single Initio multi-unit policy. So as long as all units are attached you can insure the lot under one Initio policy.
Initio allows you to buy insurance online and enjoy some of the best policy coverage and claims management available to Landlords of multi units.
Specialist online property insurer, Initio, has been named as a finalist in the 2019 New Zealand Insurance Industry Awards, run by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF). Nominated as ‘Innovation of the Year’, the Waikato-based insuretech is being recognised for its customer-centric digital insurance products that enable customers to instantly change and update their policy themselves online.
This innovation, called Live Policy, was launched in October 2018. The product promotes instantly modifiable house and contents insurance: self-service innovation that enables customers to modify, add to, start or stop their house and/or contents insurance policy as and when they need to. The customer simply logs into a personalised dashboard to edit the detail, with any policy changes effective immediately.
The traditional process of modifying an in-force insurance policy remains clunky, with other insurance companies requiring additional human input and manual confirmation of policy changes from the insurer or broker.
“Live policy is about giving the customer total control over their insurance, without having to wait,” said Initio CEO, Rene Swindley.
“We found that many customers would set up their insurance online only to want to change something after the policy was created. These changes included things like increasing the insured value, updating an insured or interested party, adding specified contents items, such as jewellery, and simple fixes like a spelling error in their name or address.
“We felt that in allowing customers to modify their insurance when they wanted to, we added significant value to a more transparent and responsive insurance experience – the way insurance should be.”
In addition to Live Policy, Initio is improving the end-to-end claims process; currently able to pay simple claims to the customer in under an hour, the company’s mission is to pay out to customers just as fast as customers purchase their premiums online – in seconds.
When Initio was founded in 2011, it was transformative in giving homeowners and landlords the ability to effortlessly quote and purchase house insurance online in real time through its website, initio.co.nz.
Setting out to make insurance less complicated, Initio was the first provider in New Zealand to bind and receipt payment for a house insurance policy, 100% online with no human intervention, and since then has completed over 30,000 automated insurance transactions online. Remaining at the forefront of insuretech in New Zealand, Initio continues to challenge traditional insurance processes by developing innovations and claims experience that make for a far superior customer experience.
The ANZIIF New Zealand Insurance Industry Award Winners will be announced on Wednesday 27 November at the Cordis in Auckland.
Initio is a New Zealand-based online insurance provider, insuring over $2.5 billion in property. Founded in 2011 by a couple of Kiwis, Initio set out to change the broken insurance industry by using technology to put control back into the hands of the customer.
Having completed over 30,000 automated insurance transactions, Initio’s market-leading policies can be quoted, bought and amended online – all in an instant.
Initio is underwritten by NZI, a business division of IAG New Zealand Limited.
Congratulations! You’ve found your new dream home and the day has come for the big move to your new property. But what if something falls off the back of the truck during the move? Does your insurance still cover it? Moving house can be stressful at the best of times, so here are a few simple steps to ensure that at least your insurance is under control.
Cancel the home you’ve sold from the sale settlement date and insure the new home from the purchase settlement date. Our system will automatically provide a refund for the unused portion of the cancelled policy.
The new cover will require updated details about your new address, and in some cases these may need to be reviewed by our team. It’s a good idea to apply for cover early – even before you go unconditional – so you know there won’t be any issues insuring the new property. This is especially important for homes that are older, in higher hazard zones, or have unconsented work.
What about contents during the move?
Contents in transit is usually covered by specialty insurance, but your standard owner-occupied contents policy does provide some limited cover.
With initio, your contents are covered for sudden and accidental loss from specified events while being moved from your insured home to another permanent residence in New Zealand. This cover only applies if the loss happens within your insured period.
Fire, lightning or explosion
Theft following violent and forceful entry to a motor vehicle or building
Storm or flood
Natural disaster
Aircraft or other aerial or spatial devices, or articles dropped from them
Impact by motor vehicle
It’s important to know this cover does not apply to accidental breakage or damage – for example, if a box is dropped, something tips over in the truck, or items shift and break in transit. We also don’t offer an option to extend the cover beyond these listed perils.
If you’re making a big move (like between cities) or have valuable items you want extra protection for, we recommend checking the wider insurance options provided by professional moving companies. These can give you peace of mind for risks outside the limited cover in your initio policy.
We’re in between homes, do you offer contents insurance by itself?
We don’t currently offer stand-alone contents insurance. Contents cover is only available when it’s paired with an active house insurance policy for the same property.
If you just need contents cover for a short time (for example, a few days between settlement dates), get in touch with our support team. In some cases, we can help with very short periods of cover.
If you don’t have plans to purchase another home right away but still need contents insurance, you’ll need to arrange this with another provider.
What if your OLD house catches fire and is destroyed on the day you move out?
In this scenario, it’s the new owner’s responsibility to ensure the address on their insurance is up to date. It aligns with the handover date on your sale agreement.
Maybe something was to happen to your NEW house before your official settlement date?
This remains the responsibility of the people you’ve bought the house from. The insurance officially becomes your responsibility from the date of your settlement agreement. You are unable to insure the home for the period prior to the settlement date. On the other hand, if something were to happen to your new house on the day of your official handover, insurance cover becomes your responsibility.
With a self-service platform like initio, making changes to your cover is simple. Start a new policy or cancel old cover in just a few clicks.
That’s it! Just remember, the day you take over the keys is when your new house needs to be insured from.
This guide is intended to be a quick reference when moving house. We recommend reading the full policy wording for the full details of your house and contents coverage.
There’s a lot to juggle when you’re buying your first place – deposits, lawyers, moving trucks, the lot. Sorting out home insurance when buying your first house is another step, but it doesn’t have to be confusing.
You’ve got enough to think about. We’ll make insurance the easy part.
When do you need insurance?
One of the biggest surprises for first-home buyers is when insurance is actually required. Most banks won’t release your loan until they’ve seen confirmation of cover. You can’t leave it until after settlement.
Here’s how timing works:
Auction: Check in advance that the property is insurable before bidding.
Settlement day: Even with an unconditional offer, you’ll want cover active from the moment you take ownership. Learn more about when your cover needs to begin.
Sorting your insurance early gives you peace of mind and avoids last-minute stress.
Best when you’re still finalising the purchase or need something fast. Get a quote online, customise your cover, and download the Letter of Intent instantly to show your lender the property can be insured.
Once you’ve bought the home, complete your sign-up, pay your premium, and receive the Certificate of Insurance by email. This confirms your cover is active from settlement day. All you need is your new address – no phone calls, no delays.
What to look for in your policy
Insurance isn’t one-size-fits-all. Before you buy, think about:
Sum insured: The rebuild cost of your home (not the market value). Include demolition, site clearance, and GST. Use our calculator to help you estimate the rebuild cost.
Excess: What you’ll pay if you make a claim. Higher excess lowers premiums but increases out-of-pocket costs.
What’s not: Wear and tear, gradual damage, or maintenance issues.
And don’t forget contents cover – your furniture, electronics, and valuables add up quickly.
Mistakes first-home buyers often make
It’s easy to treat insurance like a box to tick, but the wrong choice can leave you out of pocket. Common mistakes include:
Underinsuring: Cutting corners on your sum insured lowers premiums but leaves you short if disaster strikes.
Guessing rebuild costs: Use a calculator or valuation instead of rough estimates. Learn more about calculating rebuild costs.
Chasing the cheapest price: Low-cost policies often have gaps in cover or poor claims support. Use our online comparison tool to compare cover options between leading NZ insurance providers.
Picking the wrong excess: Balance affordability with what you could realistically pay. Learn more about insurance excess
Forgetting contents and car cover: Protecting your house is step one, but your belongings and car matter too. Access our contents calculator tool to work out the value of your belongings.
Why initio works for first-home buyers
You don’t just need cheap insurance – you need cover that works when it matters. That’s where initio comes in:
Watch our video where Guy, our Head of Partnerships, explains what insurance actually does, why banks care about confirmation of cover, and how to avoid common traps as a first-home buyer.
Owning a Holiday Home means you’re a little different. That’s why you need an insurance policy that provides good cover when you’re not there or when someone else is using it.
At Initio we understand that your holiday home could be advertised online, and that on occasion you may have paying guests staying. Or perhaps your holiday home is only used by your friends and family. When you insure with Initio we give you the choice, so you get the right cover for the right price.
Holiday homes are often left vacant for extended periods, we know this and we make sure that the cover continues regardless of when the property was last occupied. We also know that your holiday home is furnished and that some of your personal items may remain at the property, and this is why we provide you with a range of contents insurance options.
[initio_review_rating_total property_type=”holiday-home” get_quote_button=”Get Quote” get_quote_button_classes=”cta-button cta-button–orange”]
Here are some of the great features of the cover:
Description of Cover
Limit of Cover
Excess
Full replacement Holiday Home Cover up to Sum Insured
Your Sum Insured
Your Choice of $400 / $650 / $1,150 / $2,000
Major Malicious Damage by Guest (Fire & Explosion)
Your Sum Insured
Greater of $500 or Your Chosen Excess
Deliberate Damage by Guest
$25,000
Greater of $500 or Your Chosen Excess
Loss of Rents Cover (following property damage)
$20,000 – $80,000
Nil
Owners / Landlords Contents
Options for present day & replacement value cover
$20,000 – $220,000
Your Chosen Excess
Hidden Gradual Damage Cover
$3,000
Your Chosen Excess
Owners Legal Liability Cover
$2,000,000
Your Chosen Excess
Unoccupancy exceeding 60 days
Your sum insured
$5,000 or $2,000 with intruder alarm**
Full Earthquake Cover
Your sum insured
$5,000
** Where your property is a Holiday Home or Bach your chosen excess will apply if the property is kept in a tidy condition, all external doors and windows are securely locked, all papers and mail are collected regularly, and the home is under regular supervision. IMPORTANT This is a summary of the policy only. Please refer to the policy wording for full details of cover.
Initio allows you to buy insurance online and enjoy some of the best policy coverage and claims service available for Holiday Home owners.
Insurance is about gathering money from premiums to help people who have losses covered by their policy. When fraud happens, there’s less money to go around. This makes premiums more expensive for everyone.
Insurance fraud may appear to be a shortcut for quick financial gain, but the repercussions can be severe and long-lasting. While the motivations behind insurance fraud vary, its impact is universally detrimental, not only for insurance providers but also for policyholders.
What is insurance fraud?
Insurance fraud involves any form of deception directed at an insurance provider. It varies in scale and can range from seemingly minor infractions to substantial, orchestrated schemes. Common types of insurance fraud include:
Making false statements to support a claim.
Falsely adding items that weren’t affected to your claim.
Creating a fake situation or staging a claimable event.
Claiming the same item multiple times.
Withholding vital information, such as past criminal convictions or declined claims.
Making a claim for an incident that occurred before your policy was in place.
Knock-on effects of insurance fraud
One of the immediate consequences of committing insurance fraud is the decline of your claim and the cancellation of your policy. Here are some of the further implications:
Difficulty obtaining future insurance: If you are caught committing insurance fraud, you may find it challenging to secure insurance in the future. This can create a ripple effect of complications.
Home ownership barriers: If you can’t obtain insurance, buying a house becomes difficult, if not impossible, because most mortgage providers require home insurance as a condition of the loan.
Altering excess and making immediate claims: There have been occassions where we’ve noticed a pattern of individuals changing their policy excess amount and then making a claim the very next day. This is a red flag for insurance providers and could result in the claim being declined.
The insurance claims register: If you’re found committing insurance fraud, your details may be flagged in an industry-wide Insurance Claims Register, making it challenging to secure any type of insurance going forward.
Legal consequences: Beyond these financial and practical outcomes, insurance fraud is illegal and can lead to prosecution. In severe cases, you could receive a criminal conviction.
The importance of the date of loss
Choosing an incorrect date for when a loss occurred can also be considered a form of fraud. The date of loss is crucial for determining the policy terms that apply and for establishing whether the claim is valid. Misrepresenting this date could result in a denied claim or worse.
Consequences summarised
Being dishonest or omitting details when dealing with your insurance provider may seem like a small act at the time, but it has significant ramifications:
Claim decline and policy cancellation.
Future insurance barriers.
Potential legal issues.
Financial strain due to an inability to secure loans or buy a house.
Final thoughts: be honest
Insurance is a cornerstone of financial planning, offering a safety net for unforeseen circumstances. Fraud undermines this system for everyone involved. By understanding the gravity of insurance fraud and its consequences, you can make informed and honest decisions when dealing with your insurance provider.
Landlord insurance is a tailored policy for a property used as a rental. It is different to normal house insurance. Landlord insurance covers both the rental (your house itself) and the additional risk added by having a tenant in the property.
All homeowners are exposed to common risks such as fire damage, flood, and earthquake, but as a landlord you face an additional occupancy risk due to a tenant living in the property. Unlike family, tenants are not generally known to you.
How is landlord insurance different from house insurance?
In short, landlord insurance is the same as insurance for your own home, but for two big differences:
Disclosure – use of the property: Landlord insurance specifically accounts for the fact that your family does not live in the property. This is very important. If your rental property burns down and your insurer is not aware that it is a tenanted property the insurer could be entitled to deny your claim.
Additional landlord risks: Unlike your own home insurance, most landlord insurance includes coverage to specifically address the additional landlord risks:
What are my additional risks as a landlord?
Accidental damage by tenants
This is where your tenant un-intentionally causes damage to the property. For example: they spill a glass of red wine on the carpet. In this situation you need a landlord insurance policy in order to have a successful claim. It is unlikely that you can recover the cost of your insurance excess from the tenant.
Deliberate damage by tenants
Deliberate damage, also known as malicious or intention damage is usually the case when, as a landlord, you discover holes in walls and damage that is unlikely to have been the result of an accident. Cover for this is provided by a landlord insurance policy, usually up to a limit of around $25,000. The cover protects you from the cost of a tenant deciding to make a mess of your property.
Loss of rents following damage
If your rental property suffers a loss that deems the house uninhabitable then you face having an un-tenanted property while the repairs are completed and the property is occupied again. This will mean a loss of rental income. Landlord insurance provides cover for this loss of income up to a selected value (eg $40,000) for a payout period of usually 12 months. For major losses the cover will stop as soon as the loss of rent amount is used or the payment period ends, whichever comes sooner.
Loss of rents resulting from eviction or abandonment
This is where your tenant is evicted from the property (by decision of the Tenancy Tribunal) or your tenant leaves without giving notice. In both situations it means that you will be out of pocket due to loss of rental income. Some landlord insurance policies will reimburse you for this loss of income but only up to 6 or 8 weeks, following the formal eviction or discovery of the abandonment.
Landlord contents damage or theft
Even an unfurnished rental property had landlord contents. The oven and curtains are contents, not house. The tenant risk means that you could suffer a loss to these items, and this risk increases when you partially or fully furnish a property. A landlord insurance policy protects by providing cover, usually up to a standard limit of $20,000. Some landlord insurers provide an option to purchase more contents cover for an additional cost, which is important for furnished properties.
Landlord liability
As a landlord you accepting money (rent) for providing a house (accomodation). This makes means that you are in the business and with this comes additional regulatory obligations that, if breached, can cost you. Tenants can also have a go at you if they suffer a loss because of something you did (or didn’t do). The best example here is if a landlord did not change the locks after a previous tenant abandoned it and the new tenant was robbed (with no sign of forced entry). Some landlord insurance policies include cover for landlord liability, meaning that if you are pursued by a tenant or a regulatory authority the insurer use their lawyers to defend you, and if you are held liable pay certain awards against you.
Meth contamination
Meth and other illegal substances can cause significant damage to a property, especially when the substance is being manufactured. Meth clean-up costs can easily exceed $10,000. Reducing the risk of contamination occurring is best managed through good tenant vetting procedures and meth testing in between tenancies. If you do suffer a contamination loss and have a robust landlord insurance policy you will have cover for up to $30,000, plus the loss of rental income incurred.
Can I hold the tenant responsible for damage?
Yes and no. It really depends whether the damage was accidental, intentional, or just careless. Having a good landlord insurance policy would mean you are covered for all the causes of damage by the tenant – and then your insurers will decide whether to go after the tenant for the repair costs.
The good news is that the Residential Tenancies Act now provides scope for landlords (and their insurers) to recover the cost of repairs or their insurance excess from the tenant. Learn more holding tenants responsible. It is important to note that, more often than not, tenant damage claims result in the landlord’s insurer applying more than one excess. This is because insurance works on incidents, and each incident is a separate claim that attracts its own excess. Learn more about how insurers look at events
House contents insurance is designed to protect the things inside your home – the personal belongings that make it yours.
Initio’s house insurance includes the option to cover your contents, so your personal belongings are protected for repair or replacement if something happens, typically on a new-for-old basis. This includes most household items, with some exceptions that are covered for their current market value, such as clothing, books, and certain electronics. The policy also provides cover for contents in transit or temporarily in storage, and offers personal liability protection up to $1 million for accidental damage you may cause to others’ property in New Zealand.
When you take out contents insurance with initio, you’ll set a total sum insured, the maximum amount we’ll pay if all your contents are lost or damaged. This is usually based on the cost to replace everything you own in a total loss. However, some items have specific payout limits, even if your overall sum insured is higher. These limits apply to things like jewellery, bikes, artworks, and certain electronics, and are designed to reflect their typical value and risk. To understand exactly what’s covered and any limits that apply, it’s important to review your policy wording. That way, you can decide if you need to specify high-value items separately to ensure they’re fully protected.
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.
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 house 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.
Gilligan Rowe + Associates and Initio have teamed up to provide you with a competitive online option for your house insurance, including rental properties and holiday homes.
Add your property details below to get a quick insurance quote. If you like what you see you can start the cover online with payment by credit card or bank transfer. You will then instantly receive the cover confirmation by email. It’s that simple.
If you need any assistance insuring online, or would like to arrange cover offline, click here to contact us.
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.
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.
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.
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.
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.
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:
Liability cover in house and contents insurance protects you if you are legally responsible for accidental injury or property damage.
It can cover compensation payments and legal defence costs if a claim is made against you.
Cover can apply at your home and, in some situations, anywhere in New Zealand.
ACC covers medical treatment for injuries, but liability insurance may respond to other related claims.
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.
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
Whether you’re considering becoming a landlord for the first time or looking to optimise your rental process, this guide covers some of the key aspects you need to know.
Key takeaways in this article:
Being a landlord comes with legal responsibilities.
Make sure your property meets Healthy Homes Standards.
Decide early between long-term or short-term renting.
Set rent based on local market research.
Screen tenants carefully and keep good records.
Standard home insurance does not cover rental risks.
Regular inspections and maintenance help avoid bigger costs.
Rental income is taxable, so check your obligations.
Renting out your home in New Zealand can be a great way to generate extra income, but it comes with responsibilities and risks.
Before you rent out your home
Get the right advice early
Refer to Tenancy Services for the latest landlord specific advice such as healthy homes and legal requirements
You may also want to join your local property investor association for support and advice – New Zealand Property Investors Association have various branches throughout New Zealand.
Consider whether a professional property manager is right for you.
Services like myRent can help with advertising, tenant management, and documentation.
Understand Healthy Homes requirements
Landlords must ensure their rental meets Healthy Homes Standards. This includes heating, insulation, ventilation, moisture control, and draught stopping.
Keep accurate records of agreements, inspections, and payments
Choosing the right strategy
Long-term rentals
Long-term rentals provide steady income and greater stability. They generally involve less turnover but require ongoing property management.
Short-term and holiday rentals
Short-term rentals, such as Airbnb, can earn more during peak seasons. However, they require more active management, cleaning, and compliance with council rules.
They also require commercial insurance, which can cost more than standard landlord cover.
Insurance differences to consider
Landlord insurance is designed to protect against tenant damage, loss of rent, and liability claims. Always check policy conditions, including inspection and tenant screening requirements.
Setting up your rental property
Set the right rent price
Research similar properties in your area to set a competitive rental price. Consider:
Location and amenities
Property size and condition
Market demand
Seasonal fluctuations
Websites like Trade Me Property and Tenancy Services can help you gauge market rents in your area.
Advertising your property
Advertise on platforms such as Trade Me Property, Facebook Marketplace, or use a property manager to find suitable tenants.
Screening tenants
Carry out proper checks before accepting a tenant. This may include:
Credit checks
Previous landlord references
Employment verification
Use Tenancy Services templates or services like myRent to ensure all legal terms are covered.
Home insurance is designed for owner-occupied properties, where the owner lives in the home. It is priced and structured around that lower risk profile. Once a property is rented out, the risk changes. There is less control over how the home is used, and there are additional exposures such as tenant damage, loss of rent, and liability issues.
Because of this, standard home insurance will not cover many rental-related risks. If your property is tenanted, you should have a landlord policy that is specifically designed for rental situations.
Your obligations under a landlord policy
Most landlord policies require reasonable tenant screening and regular inspections. Failing to meet these obligations can affect a claim.
Respond promptly to maintenance requests and budget for ongoing upkeep to avoid larger repair costs later.
Tracking rent payments
Use a clear system to track rent payments and maintain accurate financial records. Property management tools like myRent can assist with this.
Ending a tenancy correctly
Tenancy agreements
Ensure tenants sign a legally binding Residential Tenancy Agreement outlining rent, bond, and house rules.
Notice periods and bond refunds
When ending a tenancy, follow the correct notice periods and manage bond refunds according to legal requirements.
Understanding tax responsibilities
Rental income is taxable in New Zealand. You may also be able to claim expenses such as:
Property management fees
Mortgage interest (if applicable)
Repairs and maintenance
Insurance and rates
Check with an accountant or Inland Revenue (IRD)for guidance on tax obligations.
Final thoughts
Renting out your home can be financially rewarding, but success depends on understanding your legal duties, choosing the right rental strategy, and arranging proper landlord insurance. Taking time to plan now can help you avoid costly mistakes later.
If you’re considering renting your property, take the time to research and seek professional advice where needed to avoid common pitfalls.
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.
As a landlord, the risks to which you are exposed are often not covered by a standard insurance policy. When taking this next step on the property ladder it is important to have the right Landlord Insurance cover in place to save yourself from headaches down the track.
Does your policy cover your tenanted house? While it seems obvious, a standard house insurance policy is designed to cover owner occupied homes, if you were to make a claim and the insurer discovered the house was tenanted your claim could be declined. If you have listed your holiday home for rent or if you have recently moved out of your own home and tenants have moved in, make sure you have notified your insurance provider, and they have the correct Landlord Insurance cover in place.
Does your policy cover loss of rents? Following a claim for property damage to your house, there will likely be a period where it is uninhabitable while you wait for the repairs to be carried out and completed. You are going to want your Landlord Insurance to pay for your lost rental income during this time. Make sure that the policy will pay out for at least 12 months, and that the limit is large enough to cover the week rent – ie $20,000 over 12 months is up to $385 per week.
Does your policy include cover the carpets? House insurance policies often only cover floor coverings that are glued to the floor, while most carpet is tacked. Therefore, it is important that your Landlord Insurance policy includes cover for your contents. Make sure this amount is enough (we recommend at least $20,000) to cover your appliances, carpets, drapes, blinds and other furniture that remains in the house while it is tenanted.
Does your policy include damage caused by your tenants? Generally, your insurance policy will exclude deliberate damage caused by a person living at the house, so if your tenants intentionally damage your house you may not be covered. A good Landlord Insurance policy will include cover for malicious or deliberate damage by tenants.
Does your policy continue if your house is vacant? Some policies will cease cover if the house is vacant. So, if it takes longer than expected to tenant your house, or if you have no bookings at your holiday home over the winter, you might not have any insurance cover. Look for a Landlord Insurance policy that will continue to provide cover even while the house is unoccupied.
If your tenants are holding the keys to your retirement savings, you don’t want to leave anything to chance. The initio policy was designed specifically for rental houses and holiday homes, so you can rest easy knowing that one of your largest assets is in safe hands. To get a quote visit initio.co.nz.
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
Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.
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.
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:
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).
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
Written by Hannah Gabbie, Head of Claims at initio. 
