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Financial Advice Provider Disclosure Statement

1. About Initio

This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.

Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.

All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating

Contact Details

Provider: Initio Limited
FSP Number: FSP523166
Website: www.initio.co.nz
Phone: 0800 763 929
Email: [email protected]
Address: 6 Garden Place, PO Box 319, Hamilton 3204

2. Your Financial Adviser

Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.

Adviser Name: Rene Swindley
FSP Number: FSP122087
Contact Email: [email protected]
Qualifications: New Zealand Certificate in Financial Services (Level 5)
Experience: 20 years in the insurance industry

3. Nature and Scope of Our Advice

We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):

  • Homeowner’s house and contents insurance
  • Landlord and holiday home insurance
  • Multi-unit rental property insurance
  • Motor Vehicle insurance

Limitations on Our Advice

Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.

Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.

Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.

Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.

4. Our Duties

Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:

  • give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
  • exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
  • meet the standards of competence, knowledge, and skill set out in the Code;
  • meet the standards of ethical behaviour, conduct, and client care set out in the Code;
  • ensure that the information we make available to you is not false, misleading, or incomplete.

A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.

5. Fees, Expenses, and Commissions

Transaction Fees

For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.

Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.

Commissions

Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.

Product Type Commission Rate
House and contents insurance 22.5% of insurer premium portion
Motor vehicle insurance 10.0% of insurer premium portion

Claims Handling Fees

Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.

Referral Partners

Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.

Adviser Remuneration

All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.

6. Conflicts of Interest

We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:

  • Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
  • Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
  • Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.
  • Ownership Interest: Rene Swindley holds a shareholding interest and directorship in Initio. This means that Rene Swindley has a financial interest in the commercial success of Initio, including through the sale of Initio insurance products. This ownership interest could be perceived as creating an incentive for this adviser to recommend Initio products, or recommend a higher level of cover, in circumstances where that may not be in your best interests.

How We Manage These Conflicts

Initio manages these conflicts of interest in the following ways:

  • Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
  • We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
  • Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
  • All financial advisers undergo training on how to manage and disclose conflicts of interest.

7. Reliability Events

A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.

Neither Initio, nor Rene Swindley, has been subject to a reliability event.

8. What to Do If Something Goes Wrong

Internal Complaints Process

If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:

  • Email: [email protected]
  • Phone: 0800 763 929
  • Post: The Complaints Manager, PO Box 319, Hamilton 3204

When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.

External Dispute Resolution

If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.

Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).

Scheme: Insurance & Financial Services Ombudsman Scheme (IFSO)
Phone: 0800 888 202
Email: [email protected]
Website: www.ifso.nz
Post: PO Box 10-845, Wellington 6143

9. Privacy

We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.

For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.

10. Further Information

You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.

This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.

This information is also available in writing, on request.

This disclosure statement was prepared on:        15th March 2021

This disclosure statement was updated on:         31st March 2026

Residential Tenancies Amendment Act – who now pays for damage?

On 30th of July 2019 changes to the legislation around tenant damage and meth contamination were passed into law.

The Residential Tenancies Amendment Act 2019  will:

  • limit tenants’ liability for careless damage in rental properties to the landlord’s insurance policy excess or 4 weeks rent (whichever is less)
  • re-open the ability for the landlord to recover against the tenant for damage, albeit on a very limited basis
  • allow tenants to share in and receive protection from the landlord’s insurance policy
  • mean that landlords must provide confirmation of insurance cover to all new tenancies and their exisiting tenants on request
  • prevent insurers from pursuing tenants for unintentional damage (ie careless or accidental damage)
  • allow for regulations to be made to address how contamination (eg. meth) of rental properties is tested and managed
  • give the Tenancy Tribunal full jurisdiction over cases concerning premises that are unlawful for residential purposes, such as garages and sleep-outs, which don’t meet minimum requirements for renting
  • protect tenants living in those unlawful premises, as the Residential Tenancies Act will now apply
  • give Tenancy Services the ability to take enforcement action against landlords who rent properties which don’t meet minimum standards

These changes are scheduled to take effect on 27 August 2019. The provisions of this new Act only apply to damage occurring after this date. 

So, I’m a landlord, how do these changes affect me and my insurance?

It depends on how the damage has been caused.  There are four ways a rental property can suffer damage:

Residential Tenancies Amendment Act 2019

Accidental Damage – S#!t Happens eg. storm damage

Accidental damage is damage that can’t be avoided, because sometimes s#!t happens.  This could be caused by an ‘act of god’ type loss such as a storm causing damage to the roof of the property.  Or it could be a leaking water pipe or an electrical fire. This type of damage is completely outside of the control of the tenant  liability, and as such they have no liability for this damage.  The landlord is responsible for this damage, and will usually have insurance to pay the claim.

  • Who is responsible for the cost of the damage?  answer:  the landlord (ie.  their insurer)
  • Who pays the insurance excess?  answer:  the landlord

Accidental Damage by Tenant eg.  spilling a glass of red wine on the carpet

Accidental damage can also be caused by a third party, such as a tenant.  This could come in the form of a tenant tripping and spilling wine on the carpet, or their washing machine flooding.  In both cases these are technically outside of the control of the tenant and there is no liability on the part of the tenant.  So even if the tenant causes the accidental damage, the tenant has NO liability.  The tenant can rely on the landlord’s insurance policy the repair the damage, and the tenant cannot be made to pay the insurance excess (or 4 weeks rent).

  • Who is responsible for the cost of the damage?  answer:  the landlord (ie.  their insurer)
  • Who pays the insurance excess?  answer:  the landlord

Careless Damage by Tenant – eg.  leaving a pot cooking on the stove and going to bed

Where a tenant (or their guest) carelessly causes property damage to the home, they are liable for those damages. This could be where the tenant leaves a pot cooking after going to bed and causes fire damage to the kitchen. While the amendment to the act now makes the tenant liable, the maximum amount the tenant can be held responsible for is the landlord insurance policy excess, or 4 weeks rent (whichever is lesser).  The new Act effectively allows the tenant to share in and receive the benefit of the insurance arranged by the landlord.

  • Who is responsible for the cost of the damage?  answer:  the tenant (but its capped at the lessor of the landlords insurance excess or 4 weeks rents)
  • Who pays the insurance excess?  answer:  the tenant (see pain points below)

Intentional damage by Tenant – eg.  smashing holes in the wall

A tenant is not excused from liability when the damage is intentional or where the damage they (or their guest) have caused constitutes an imprisonable offence. In such circumstances the responsibility is on the tenant to notify the landlord of the damage.  The landlord can request that the tenant repair the damage, but if the landlord is properly insured (ie has an initio landlord insurance policy) they will be covered for intentional damage so its best to lodge a claim for the damage, and allow the insurer to pursue the tenant for the cost of repairs.

  • Who is responsible for the cost of the damage?  answer:  the tenant
  • Who pays the insurance excess?  answer:  the landlord (but the insurer will attempt to recover the value of the excess from the tenant along with the costs the incurred to repair the damage)

What about Methamphetamine Contamination?

The Act allows landlords the right to enter the rental property (after providing notice to the tenant) to sample and test for meth contamination.  If testing confirms that the property is contaminated to unsafe levels (currently higher than 1.5 μg per100 cm2) then the landlord, and the tenant, have rights to terminate the tenancy.  The landlord can terminate with a minimum notice period of 7 days, whereas the tenant can terminate with only 2 days notice.

Meth testing must be done in accordance with the Standards New Zealand standard, and the landlord must notify the tenant within 7 days of receiving the test results.

If a landlord knowingly rents a property with meth contamination, the tenant can be awarded damages of up to $4,000.

We are still awaiting further details around this and exactly what standard will be set by the Housing Minister. Currently the NZ Standard, which the insurance industry follows says that a property is contaminated if the presence of meth exceeds 1.5 μg/100 cm2, however the Gluckman Report, which the tenancy tribunal follows says that a property is contaminated if it is more than 15 μg/100 cm2. We are expecting that the amendment to the Residential Tenancies Act will provide some consistency and that we will all move to 15 μg/100 cm2 as being the level where contamination occurs.

Given that the possession of meth can attract a penalty of up to 6 months imprisonment, and manufacture of meth a maximum penalty of life imprisonment, if use/possession or manufacture is proven at the property the tenant is NOT excused from liability and has NO protection from the landlords insurance policy.  The landlord or their insurer can recover the cost of cleanup and repair from the tenant.

Who is responsible for the cost of the damage?  answer:  the tenant
Who pays the insurance excess?  answer:  the landlord (but the insurer will attempt to recover the value of the excess from the tenant along with the costs the insurer incurs to remediate the property)
Important:  The likelihood of recovering costs from a tenant for meth damage is extremely low.  Firstly proving it was the tenant is difficult, and secondly meth addicts generally don’t have the financial resources to pay for such large repairs.  

Where are the pain points with these changes?

Accidental vs Careless

As accidental damage means that the landlord pays the excess, and careless damage means that the tenants pays the excess, we expect to see disagreements between landlords and tenants about the cause of the damage. If the landlord and tenant cannot agree whether the tenant is liable for the damage, the landlord can apply to the Tenancy Tribunal for the matter to be resolved. Copies of relevant insurance policies, photos of the damage, and receipts or quotes for repair should be included to support the application.

Is meth contamination careless or intentional?

We believe it is intentional but fortunately the new Act catches meth under the category of imprisonable offence.  We anticipate that tenants (and maybe the courts) will continue to argue that the resulting damage from smoking meth is careless not intentional.  Our opinion is that there is now enough information in the public domain for people to understand that meth causes property damage.

A tenant has carelessly damaged my property, I’ll leave the tenant to pay the excess to the insurer/repairer?

If you establish that the tenant has been careless this won’t mean that its a slam dunk on the tenant physically paying the excess.
We foresee there will be arguments over who physically pays the excess to the insurer or the repairer.  Is it the insurer or is it landlord?  Given that the policy owner is the landlord this suggests that the landlord would need to pay the excess and then recover it from their tenant.  This may change in time as the new Act is tested with real loss scenarios.

We recommend that as soon as the landlord becomes aware of, and can establish that “careless damage” has occurred, that they hold their tenant responsible for the excess and request immediate payment.

 

What do I need to do?

You will need to provide a confirmation of insurance certificate to your tenant

Landlords are now required to provide all new tenants, and existing tenants where they request it, details of their property insurance. Any changes made to your insurance, also need to be notified to your tenants. Failure to do so could result in a $500 fine to be paid to the tenants.  You can provide the tenant with a standard certificate of insurance but this will have more information on it than you are required to disclose (such as the Bank that has a mortgage over your property).  Some insurers like initio have produced a specific Tenant Certificate. To obtain a Tenant Certificate of insurance to provide to your tenant or property manager you can get this through your initio dashboard.

Seeing the tenant is paying should I increase my excess?

Probably not – as the tenant only responsible for paying the excess some of the time.

A number of landlords have mis-interpreted that the tenant will pay the excess on all types of claims, and have moved to increase their insurance excess to align with approximately 4 weeks rent.

Remember that if you increase your excess, the higher excess will apply to ALL claims, not just the ones that the tenant is responsible for.  The measure of tenant responsibility is carelessness so as a landlord you need to be able to establish that your tenant was careless in order to recover your excess from the tenant.

How do I increase my excess?

With initio you can easily do this by logging in to your dashboard and modifying your policy excess, and the credit premium adjustment will be refunded to you.

 

Established in 2010, Initio is a digital insurance provider specialising in property insurance, including rental property insurance, landlord insurance, holiday homes, and home and contents.  Customers can quote, start cover, modify cover and make claims – all online.   Initio is underwritten by NZI (IAG New Zealand Ltd) 

Join our team!

Digitally savvy, human touch; The heart of initio

Since 2011 we have been redefining insurance. We are creating an insurance experience that customers love! At initio, we are all about creating better digital experiences for buying and managing insurance exclusively online. We’re best known for being the first insurance provider in New Zealand to quote and bind an insurance policy online. We consider ourselves to be the challenger brand to the domestic insurance market in New Zealand and as such we are on a mission to redefine the way insurance is managed and delivered to customers digitally.

At initio, we’re not just hiring; we’re on the lookout for thinkers, creators, and lively souls eager to influence the next chapter of insurance for our clients. If you’re brimming with creativity and ready to make an impact, you’re in good company. 

 

Award-Winning Workplace  

Yes, you read it right; we’ve got a brand-new accolade. initio has been named one of the Best Insurance Companies to Work for in Australia and New Zealand in 2023! If you want to be part of a company that’s officially recognised as a brilliant place to work, one that truly looks after its staff, then look no further. Come join our award-winning team and let’s transform those brilliant ideas into something that shines even brighter.

 

Open Positions 

Here’s a sneak peek at our roles currently on offer. Can’t find the perfect role just yet? Keep swinging by – new opportunities land faster than you can say “Cheeseburger Fridays.”

 

Why has my home premium changed?

Has your home insurance premium changed recently? Your insurance cost can shift for a few reasons. Let’s break it down:

What makes up your insurance cost?

Your home insurance cost is made up of three things:

The Insurer Premium

This is the main part of your insurance cost. It reflects the level of risk associated with your home and a few key factors, including (but not limited to):

  • Your sum insured (the amount your home is covered for)

  • The location of the property

  • Your chosen policy excess

  • Global insurance costs (reinsurance)

  • Current construction costs for materials and labour, which influence typical claim costs

  • The frequency and severity of past or expected weather events

The Fire and Emergency NZ Levy

The Fire & Emergency NZ Levy is a Government charge that funds emergency response and firefighting services.

The Natural Hazard Insurance Levy

Previously known as the Earthquake Commission (ECQ) levy, the Natural Hazard Insurance (NHI) Levy  is for a Government-provided insurance that helps with the cost of repairing or replacing residential homes that are damaged by:

    1. Earthquake
    2. Tsunami
    3. Landslip
    4. Volcanic eruption
    5. Hydrothermal activity

 

So right now, what’s changed, and how does it affect my insurance costs?

  • Rebuild value of your home: Each year, we may raise the amount your home is insured for. We do this to account for the increasing cost of building a house, and we call it indexation. If the insured value goes up, your policy cost will also go up. Remember, you’re the one who decides the final insured value of your home. You can always change or undo any updates we make. Any changes to this value will change the cost of your insurance.  Learn more about changes to rebuild values.
  • Premium rate changes: Each year, the cost of your policy might change. This happens because the pool of money needed to cover claims can vary. Insurance providers, like us, look at the number of claims made and the likelihood of future events, such as storms.
    • If many people make claims, for example, after bad weather, the cost for everyone can go up, even if you didn’t make a claim. The money you pay helps create a fund that covers these claims, ensuring there is enough money to cover losses when needed. So, if there are more claims, the cost could increase for everyone.
  • Fire and Emergency NZ levy change: From 1 July 2024, the FENZ levy rate will increase by 12.7%. Being a change from 10.60c per $100 sum insured (capped at $119.50 per house/living unit, and $21.20 for contents) to 11.95c per $100 sum insured (capped at $119.50 per house/living unit, and $23.90 for contents)
  • Average Claims Costs:  The average cost of each claim has increased in line with local materials and trade costs.

A further explanation on why premium rates are increasing

  • Earthquake risks: New Zealand is earthquake-prone, it’s in the ‘ring of fire’, and is considered one of the highest quake-risk countries in the world. This affects premium rates, and reinsurers (the insurers of the insurers) charge more. 
  • Global insurance costs: It’s not just disasters in New Zealand that affect our premium rates.  When something happens on the other side of the world, it impacts the reinsurers that provide cover to the New Zealand market
  • Reserve Bank risk charge: Since its 2020 review, the Reserve Bank has applied an extremely high catastrophe risk charge to New Zealand insurers. Most insurers globally have to hold sufficient re-insurance or capital reserves to cover the risk of a 1-200 year catastrophe event. New Zealand insurers have to hold sufficient re-insurance or capital reserves for a 1-in-1000 year catastrophe event.
  • 2023 Weather events: Big storms and floods mean more people need help from insurance, pushing up the cost.  The quantity and severity have been steadily increasing over the last few years, with 2023 being off the chart. These events tend to have a longer-lasting impact on the amount and cost of re-insurance. As a result, the effects can take longer to reach the local market. 


To ensure you have the latest updates on weather events, we’ll regularly update our blog with a link to the IAG Wild Weather Tracker report.

The graphic below, provided by IAG, provides more detail on the average New Zealand house insurance premium. Most of the recent premium increases are the consequence of the 2023 major weather events, reinsurance changes (insurance of the insurer) and increases in government levies:

Will I always be notified of changes?

Yes, you will. If there’s a change to your yearly or monthly insurance cost, we’ll let you know a month in advance.  Generally speaking, your insurance cost will change each year.   

Remember, you can also check your cover and make instant changes to things like excess and sum insured from your online dashboard.

We also display on your dashboard if there have been changes to your premium rates for any expiring policy, along with a visual cost breakdown specific to your policy.  You can find that immediately above any “renew & confirm button” on your dashboard.

We aim to keep you in the loop so there are no surprises.

Will making a claim on my home or contents policy affect my premium?

No. Your premium won’t change just because you make a claim. Our home and contents policies don’t include a “no claims bonus” or discount, so your premium is not directly affected by your claims history.

 

See how we compare

Useful Links

How are house insurance premiums calculated?
Am I covered for natural disasters?
Why does my rebuild value change?
Top 4 mistakes people make when insuring their house
Why do Premiums Increase?
How to set up an account with a visa debit card

Financial Advice Provider Disclosure Statement

1. About Initio

This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.

Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.

All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating

Contact Details

Provider: Initio Limited
FSP Number: FSP523166
Website: www.initio.co.nz
Phone: 0800 763 929
Email: [email protected]
Address: 6 Garden Place, PO Box 319, Hamilton 3204

2. Your Financial Adviser

Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.

Adviser Name: Carmen Jones
FSP Number: FSP1011244
Contact Email: [email protected]
Qualifications: New Zealand Certificate in Financial Services (Level 5)
Experience: 35+ years in the insurance industry

3. Nature and Scope of Our Advice

We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):

  • Homeowner’s house and contents insurance
  • Landlord and holiday home insurance
  • Multi-unit rental property insurance
  • Motor vehicle insurance

Limitations on Our Advice

Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.

Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.

Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.

Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.

4. Our Duties

Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:

  • give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
  • exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
  • meet the standards of competence, knowledge, and skill set out in the Code;
  • meet the standards of ethical behaviour, conduct, and client care set out in the Code;
  • ensure that the information we make available to you is not false, misleading, or incomplete.

A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.

5. Fees, Expenses, and Commissions

Transaction Fees

For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.

Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.

Commissions

Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.

Product Type Commission Rate
House and contents insurance 22.5% of insurer premium portion
Motor vehicle insurance 10.0% of insurer premium portion

Claims Handling Fees

Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.

Referral Partners

Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.

Adviser Remuneration

All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.

6. Conflicts of Interest

We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:

  • Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
  • Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
  • Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.

How We Manage These Conflicts

Initio manages these conflicts of interest in the following ways:

  • Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
  • We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
  • Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
  • All financial advisers undergo training on how to manage and disclose conflicts of interest.

7. Reliability Events

A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.

Neither Initio, nor Carmen Jones, has been subject to a reliability event. 

8. What to Do If Something Goes Wrong

Internal Complaints Process

If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:

  • Email: [email protected]
  • Phone: 0800 763 929
  • Post: The Complaints Manager, PO Box 319, Hamilton 3204

When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.

External Dispute Resolution

If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.

Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).

Scheme: Insurance & Financial Services Ombudsman Scheme (IFSO)
Phone: 0800 888 202
Email: [email protected]
Website: www.ifso.nz
Post: PO Box 10-845, Wellington 6143

9. Privacy

We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.

For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.

10. Further Information

You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.

This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.

This information is also available in writing, on request.

This disclosure statement was prepared on:        31st March 2026

Financial Advice Provider Disclosure Statement

1. About Initio

This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.

Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.

All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating

Contact Details

Provider: Initio Limited
FSP Number: FSP523166
Website: www.initio.co.nz
Phone: 0800 763 929
Email: [email protected]
Address: 6 Garden Place, PO Box 319, Hamilton 3204

2. Your Financial Adviser

Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.

Adviser Name: Jessica (Jess) Clark
FSP Number: FSP635990
Contact Email: [email protected]
Qualifications: New Zealand Certificate in Financial Services (Level 5)
Experience: 9 years in the insurance industry

3. Nature and Scope of Our Advice

We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):

  • Homeowner’s house and contents insurance
  • Landlord and holiday home insurance
  • Multi-unit rental property insurance
  • Motor vehicle insurance

Limitations on Our Advice

Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.

Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.

Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.

Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.

4. Our Duties

Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:

  • give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
  • exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
  • meet the standards of competence, knowledge, and skill set out in the Code;
  • meet the standards of ethical behaviour, conduct, and client care set out in the Code;
  • ensure that the information we make available to you is not false, misleading, or incomplete.

A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.

5. Fees, Expenses, and Commissions

Transaction Fees

For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.

Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.

Commissions

Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.

Product Type Commission Rate
House and contents insurance 22.5% of insurer premium portion
Motor vehicle insurance 10.0% of insurer premium portion

Claims Handling Fees

Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.

Referral Partners

Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.

Adviser Remuneration

All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.

6. Conflicts of Interest

We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:

  • Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
  • Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
  • Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.

How We Manage These Conflicts

Initio manages these conflicts of interest in the following ways:

  • Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
  • We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
  • Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
  • All financial advisers undergo training on how to manage and disclose conflicts of interest.

7. Reliability Events

A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.

Neither Initio, nor Jess Clark, has been subject to a reliability event.

8. What to Do If Something Goes Wrong

Internal Complaints Process

If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:

  • Email: [email protected]
  • Phone: 0800 763 929
  • Post: The Complaints Manager, PO Box 319, Hamilton 3204

When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.

External Dispute Resolution

If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.

Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).

Scheme: Insurance & Financial Services Ombudsman Scheme (IFSO)
Phone: 0800 888 202
Email: [email protected]
Website: www.ifso.nz
Post: PO Box 10-845, Wellington 6143

9. Privacy

We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.

For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.

10. Further Information

You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.

This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.

This information is also available in writing, on request.

This disclosure statement was prepared on:        31st March 2026

Financial Advice Provider Disclosure Statement

1. About Initio

This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.

Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.

All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating

Contact Details

Provider: Initio Limited
FSP Number: FSP523166
Website: www.initio.co.nz
Phone: 0800 763 929
Email: [email protected]
Address: 6 Garden Place, PO Box 319, Hamilton 3204

2. Your Financial Adviser

Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.

Adviser Name: Marek Smit
FSP Number: FSP1004895
Contact Email: [email protected]
Qualifications: New Zealand Certificate in Financial Services (Level 5)
Experience: 9 years in the insurance industry

3. Nature and Scope of Our Advice

We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):

  • Homeowner’s house and contents insurance
  • Landlord and holiday home insurance
  • Multi-unit rental property insurance
  • Motor vehicle insurance

Limitations on Our Advice

Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.

Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.

Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.

Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.

4. Our Duties

Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:

  • give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
  • exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
  • meet the standards of competence, knowledge, and skill set out in the Code;
  • meet the standards of ethical behaviour, conduct, and client care set out in the Code;
  • ensure that the information we make available to you is not false, misleading, or incomplete.

A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.

5. Fees, Expenses, and Commissions

Transaction Fees

For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.

Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.

Commissions

Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.

Product Type Commission Rate
House and contents insurance 22.5% of insurer premium portion
Motor vehicle insurance 10.0% of insurer premium portion

Claims Handling Fees

Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.

Referral Partners

Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.

Adviser Remuneration

All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.

6. Conflicts of Interest

We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:

  • Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
  • Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
  • Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.

How We Manage These Conflicts

Initio manages these conflicts of interest in the following ways:

  • Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
  • We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
  • Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
  • All financial advisers undergo training on how to manage and disclose conflicts of interest.

7. Reliability Events

A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.

Neither Initio, nor Marek Smit, has been subject to a reliability event. 

8. What to Do If Something Goes Wrong

Internal Complaints Process

If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:

  • Email: [email protected]
  • Phone: 0800 763 929
  • Post: The Complaints Manager, PO Box 319, Hamilton 3204

When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.

External Dispute Resolution

If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.

Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).

Scheme: Insurance & Financial Services Ombudsman Scheme (IFSO)
Phone: 0800 888 202
Email: [email protected]
Website: www.ifso.nz
Post: PO Box 10-845, Wellington 6143

9. Privacy

We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.

For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.

10. Further Information

You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.

This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.

This information is also available in writing, on request.

This disclosure statement was prepared on:        31st March 2026

Financial Advice Provider Disclosure Statement

1. About Initio

This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.

Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.

All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating

Contact Details

Provider: Initio Limited
FSP Number: FSP523166
Website: www.initio.co.nz
Phone: 0800 763 929
Email: [email protected]
Address: 6 Garden Place, PO Box 319, Hamilton 3204

2. Your Financial Adviser

Your financial adviser is a registered Financial Service Provider engaged by Initio under our FAP licence to give regulated financial advice on our behalf.

Adviser Name: Tobias (Toby) Pudney
FSP Number: FSP1004914
Contact Email: [email protected]
Qualifications: New Zealand Certificate in Financial Services (Level 5)
Experience: 11 years in the insurance industry

3. Nature and Scope of Our Advice

We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):

  • Homeowner’s house and contents insurance
  • Landlord and holiday home insurance
  • Multi-unit rental property insurance
  • Motor vehicle insurance

Limitations on Our Advice

Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.

Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.

Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.

Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.

4. Our Duties

Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:

  • give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
  • exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
  • meet the standards of competence, knowledge, and skill set out in the Code;
  • meet the standards of ethical behaviour, conduct, and client care set out in the Code;
  • ensure that the information we make available to you is not false, misleading, or incomplete.

A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.

5. Fees, Expenses, and Commissions

Transaction Fees

For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.

Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.

Commissions

Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.

Product Type Commission Rate
House and contents insurance 22.5% of insurer premium portion
Motor vehicle insurance 10.0% of insurer premium portion

Claims Handling Fees

Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.

Referral Partners

Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.

Adviser Remuneration

All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.

6. Conflicts of Interest

We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:

  • Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
  • Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
  • Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.

How We Manage These Conflicts

Initio manages these conflicts of interest in the following ways:

  • Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
  • We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
  • Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
  • All financial advisers undergo training on how to manage and disclose conflicts of interest.

7. Reliability Events

A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.

Neither Initio, nor Toby Pudney, has been subject to a reliability event. 

8. What to Do If Something Goes Wrong

Internal Complaints Process

If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:

  • Email: [email protected]
  • Phone: 0800 763 929
  • Post: The Complaints Manager, PO Box 319, Hamilton 3204

When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.

External Dispute Resolution

If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.

Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).

Scheme: Insurance & Financial Services Ombudsman Scheme (IFSO)
Phone: 0800 888 202
Email: [email protected]
Website: www.ifso.nz
Post: PO Box 10-845, Wellington 6143

9. Privacy

We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.

For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.

10. Further Information

You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.

This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.

This information is also available in writing, on request.

This disclosure statement was prepared on:        31st March 2026

 

Do you have a second dwelling on your property that your family lives in?

If you have two dwellings/units on your property and the second one is permanently occupied by a family member or friend who lives separately to you, it’s important to have the right insurance in place to cover both homes properly.

What counts as permanent family use?

If your second dwelling—such as a granny flat, unit, or cottage—is lived in independently by a family member or a friend, then it’s considered a separate household. Even though they are part of your extended family or close circle, the fact that they live there permanently and independently means the second home/unit needs to be insured separately as another home/unit.

What insurance do you need?

For this setup, you’ll need two separate home (Own Home) insurance policies, one for each dwelling. This ensures that:

  • Each home/unit is covered.

Begin by getting a home insurance policy for your first property and then proceed to obtain another quote for the second home/unit.

Buy house insurance

If you rely on rent from your family member for the second home/unit, we would recommend considering the Landlord policy for the second home/unit. 

Own Home, Partially Rented insurance

To ensure both dwellings are protected with the right level of insurance you’ll need to set up one policy first, then start a new quote for the other. The good news? Getting covered online only takes a few minutes, so setting up two policies is quick and easy. If you already have house insurance with us and need to add a second policy, login to your dashboard and click on the + add house policy to begin the process. While getting a quote and buying insurance online with us might be easy, our cover is anything but basic. We offer comprehensive protection to ensure you’re fully covered.

How to add a policy for a second dwelling on the same title:

  1. Login to your dashboard and click on the ‘house insurance +’ button

  2. Search for your home address & ‘see full quote’

  3. 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 are needed.

  4. 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!

Not quite what you’re looking for? Maybe some of these other scenarios suit you better:

Disclosure Statement

About Initio

This Disclosure Statement provides important information about the financial advice services provided by Initio Limited (Initio, we, our, or us). This information is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 and is designed to help you decide whether to seek or act on financial advice from us.

Initio is a Financial Advice Provider (FAP), licensed by the Financial Markets Authority (FMA) to provide financial advice under the Financial Markets Conduct Act 2013 (FMCA). You can verify this by checking the Financial Service Providers Register at www.fspr.govt.nz and searching our Financial Service Provider (FSP) number: FSP523166.

All Initio policies are underwritten by IAG New Zealand Limited (IAG). IAG has received an AA from Standard & Poor’s (Australia) Pty Ltd, an approved rating agency. A rating of AA means IAG has a ‘very strong’ claims-paying ability. IAG’s Financial Strength Rating

Contact Details

Provider: Initio Limited
FSP Number: FSP523166
Website: www.initio.co.nz
Phone: 0800 763 929
Email: [email protected]
Address: 6 Garden Place, PO Box 319, Hamilton 3204

Nature and Scope of Our Advice

We provide financial advice on the following general insurance products issued by Initio (underwritten by IAG New Zealand Limited):

  • Homeowner’s house and contents insurance
  • Landlord and holiday home insurance
  • Multi-unit rental property insurance
  • Motor vehicle insurance

Limitations on Our Advice

Important: The scope of our advice is limited to Initio’s own insurance products. We do not provide financial advice on products offered by other insurers and we are unable to offer comparisons with alternative providers’ products.

Our advice is based on the information you provide to us at the time. It is designed to help you select insurance cover from the Initio product range that is suitable for your circumstances and needs, as communicated to us.

Where your insurance needs fall outside the scope of the products we offer, we may suggest that you contact a specialist insurer or insurance broker who can assist you further. In such cases, we will not be providing financial advice on those alternative products.

Before purchasing any insurance product through us, you should read the applicable Policy Wording, which is available on our website. The Policy Wording contains important information about the product, including what is and is not covered, to help you make an informed decision.

Our Duties

Initio and our financial advisers have duties under the Financial Markets Conduct Act 2013 (FMCA) and the Code of Professional Conduct for Financial Advice Services (the Code) relating to the way we give advice. When providing financial advice, we are required to:

  • give priority to your interests by taking all reasonable steps to ensure our advice is not materially influenced by our own interests or the interests of any other person;
  • exercise care, diligence, and skill that a prudent person engaged in the same occupation would exercise in the same circumstances;
  • meet the standards of competence, knowledge, and skill set out in the Code;
  • meet the standards of ethical behaviour, conduct, and client care set out in the Code;
  • ensure that the information we make available to you is not false, misleading, or incomplete.

A copy of the Code of Professional Conduct for Financial Advice Services is available at www.financialadvicecode.govt.nz.

Fees, Expenses, and Commissions

Transaction Fees

For new house, contents, and car insurance policies, and for the subsequent renewal of those policies, Initio charges a transaction fee of between $3 and $50 + GST per policy. This fee is shown on your quote and invoice and is payable by you when the transaction is processed on the Initio platform.

Initio does not charge a fee for policy changes, alterations, certificates of insurance, or policy cancellation transactions.

Commissions

Initio receives commission from the insurer (IAG New Zealand Limited) on insurance policies. The commission is included in the premium you pay and is not an additional charge to you.

Product Type Commission Rate
House and contents insurance 22.5% of insurer premium portion
Motor vehicle insurance 10.0% of insurer premium portion

Claims Handling Fees

Initio may handle claims on behalf of IAG under delegated authority for certain in-scope claims. A fixed claims handling fee is paid by the insurer to Initio for claims handled and settled on behalf of the insurer. This fee is not charged to you.

Referral Partners

Where you have been introduced to Initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement with that partner or referrer. Any remuneration paid to our partners or referrers is not charged directly to you and does not affect the amount you pay.

Adviser Remuneration

All Initio financial advisers are paid a salary and are not incentivised by the selling (or claims settlement outcome) of insurance products. Our financial advisers do not receive any commission or other incentives for giving financial advice or selling an insurance policy.

5. Conflicts of Interest

We recognise that conflicts of interest can arise from the way we are remunerated. The following are conflicts of interest that a reasonable client would expect to be told about:

  • Limited product range: We only provide advice on Initio’s own products (underwritten by IAG). We do not compare Initio’s products with those of other insurers. This means our advice may not cover all insurance options available to you in the market.
  • Commission income: Initio receives commission from IAG on policies sold through us. This could create an incentive to recommend insurance cover that may not be in your best interests.
  • Referral payments: We may pay commissions to partners and brokers who refer clients to us, which could influence the recommendations made to you by those third parties.

How We Manage These Conflicts

Initio manages these conflicts of interest in the following ways:

  • Our financial advisers are paid a salary only and do not receive any commission, bonus, or incentive linked to the sale of policies or claims outcomes.
  • We require all financial advisers to follow an advice process that ensures recommendations are based on your goals, circumstances, and needs.
  • Where your needs fall outside the scope of our products, we will refer you to a specialist insurer or broker rather than recommend an unsuitable product.
  • All financial advisers undergo training on how to manage and disclose conflicts of interest.

6. Reliability Events

A reliability event is something that might influence your decision about whether to seek or act on our financial advice. Examples include a successful regulatory action, a bankruptcy, a criminal conviction for dishonesty, or a prohibition order by a regulatory body.

Neither Initio, nor its financial advisors, has been subject to a reliability event.

7. What to Do If Something Goes Wrong

Internal Complaints Process

If you are not satisfied with our financial advice service, we encourage you to contact us as soon as possible so that we can try to resolve your concern. You can make a complaint by:

  • Email: [email protected]
  • Phone: 0800 763 929
  • Post: The Complaints Manager, PO Box 319, Hamilton 3204

When we receive a complaint, we will consider your concerns and let you know how we intend to resolve them. Where possible, we will try to resolve your complaint immediately. If we are unable to do so, we will acknowledge your complaint within 2 business days and work with you towards a resolution.

External Dispute Resolution

If you are not satisfied with the resolution of your complaint under our internal complaints process, you can refer the matter to our external dispute resolution scheme. This is a free and independent service.

Initio is a member of the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).

Scheme: Insurance & Financial Services Ombudsman Scheme (IFSO)
Phone: 0800 888 202
Email: [email protected]
Website: www.ifso.nz
Post: PO Box 10-845, Wellington 6143

8. Privacy

We collect and use your personal information to provide you with financial advice and to arrange and administer your insurance policies. Your personal information is handled in accordance with the Privacy Act 2020 and our Privacy Policy, which is available on our website.

For more information about how we collect, use, store, and disclose your personal information, please refer to our Privacy Policy at https://initio.co.nz/privacy-policy/.

9. Further Information

You can check that Initio is a registered and licensed financial service provider, and verify the registration of your financial adviser, at the Financial Service Providers Register: www.fspr.govt.nz.

This Disclosure Statement is current as at the effective date shown. We will provide you with an updated disclosure statement if there is a material change to the information contained in it.

This information is also available in writing, on request.

This disclosure statement was prepared on:       15th March 2021

This disclosure statement was updated on:         31st March 2026

When do you need commercial insurance?

Running a business from home has become increasingly common, but knowing when your home insurance is enough – and when you need to look at commercial insurance – can be tricky. Here’s what you need to know.

Initio’s home products cover your residential home and any domestic outbuildings used for residential purposes, so long as they’re within your home’s residential boundaries.

Unless agreed otherwise, your policy will usually not cover any part of the home or any outbuilding used for business or commercial purposes, other than a home office.

Does house insurance cover your home office?

If you have a room in your home or an outbuilding that you use solely as a home office for clerical purposes then your policy will cover that part of the home. This is especially true if you’re simply using a space for paperwork, meetings, or computer-based work – something that doesn’t involve much physical activity or storage of stock.

If you have home contents insurance insured with initio, your own home contents cover is also extended to include office furniture and office equipment that is used for earning income. The furniture and equipment are covered for up to $10,000 whilst at the home and for up to $1500 whilst temporarily removed within New Zealand.

When you need Commercial Insurance;

For your Home

As soon as your home business goes beyond a simple home office or consultancy work, you’ll likely need a commercial insurance solution or special terms. If you’re storing stock, using specialised equipment, or running a business that involves physical labour (even if it’s within a garage or basement), it’s likely that standard home insurance won’t be enough. When you run any business from your residence (outside of a home office) we recommend getting in touch for specific advice. Depending upon the type and extent of the business, you may require commercial insurance. An example of such, would be a wood-working business run from the garage, whereas an occupation such as beauty therapy being run from one room can potentially be included in your home policy by agreement with the insurer.

For your contents

If you use tools or equipment from home to earn income, such as a builder’s or mechanic’s tools, it’s important to know that they are not covered under your standard home contents insurance policy. Even if you use these items for personal reasons, they require commercial insurance if they’re also used for work.

A common scenario is when tools are stolen from a car or home. You make a claim, but the insurer declines it because the tools are classified as income-earning equipment. Some may assume they can claim under their employer’s commercial policy, which often provides for ’employee tools.’ However, these claims are usually subject to a much higher theft excess, typically $2500.

To avoid this, it’s best to organise your own commercial insurance for tools and contents used for business purposes. Keep in mind, commercial policies come with higher excesses. Typically, these might look like:

  • $500 standard excess
  • $1,000 burglary excess (forced entry or exit)
  • $2,500 theft excess (no forced entry or exit)

By getting the right cover in place, you can avoid surprises if something goes wrong.

Your liability

Our owner-occupied home policy covers your liability for activities you undertake as a homeowner and our landlord policy covers your liability for activities you undertake as a landlord or provider of short term holiday home accommodation . There is no cover provided for any liability arising from other business activities. If you own or run a business from home, you would need to arrange separate liability insurance cover through a commercial insurance provider or broker, which may include a public and products liability policy, and statutory liability policy.

Case-by-case

Ultimately, each business is different, and insurers will assess whether your business falls under home insurance or requires a commercial policy on a case-by-case basis. If you’re unsure, it’s always best to check with your insurance provider to make sure you’re properly covered.

In summary, once your business grows beyond a simple home office, it’s time to consider a commercial insurance solution to protect your assets and operations.

 

Useful links

Can I insure my house that’s rented to guests?

We can insure properties that are rented out to short term guests like Airbnb, but there are some requirements.

You need to purchase the correct policy, depending upon your specific situation.  We have an option for the residence where you live occasionally let on Airbnb and also an option for your family holiday home that is also occasionally let on Airbnb.

We can’t cover a house or unit that’s used strictly for short term guests, and not by yourself or family. This is because it’s considered more like a commercial operation similar to a motel, and a commercial insurance cover is more suited.

Alternatively, if you are handing your property over to a holiday home management company under a full management contract, where they effectively have control over your property, then for the purposes of insurance it is not considered your holiday home and we will not be able to provide cover. This is because with a full management contract you lose your entitlement to occupy the property whenever you wish, which means that there is no cover provided by the Natural Hazards Commission (NHC). We cannot provide cover if the NHC is not providing cover.

Examples of what we can cover

  • Secondary house you use occasionally for yourself and your family (e.g. beach house rented on Airbnb when you’re not there).
  • Second living unit at your house rented to short term guests, but used by yourself and family when it isn’t rented.

If you have a holiday home that you sometimes rent to guests, to qualify as a holiday home, the owner must;

  • demonstrate use of the property, and;
  • Have the right to occupy the property at will, and;
  • Store personal belongings at the home.

Examples of what we can’t cover

  • Holiday home you rent on Airbnb or similar guest site that you don’t use yourself.
  • Extra living unit at your main house that you rent only to short terms guests, and don’t use yourself.
  • House or Lodge with a Bed & Breakfast function for short term guests.
  • Property managed by a commercial organisation that’s set up to rent the property to guests on your behalf.
  • Properties where your tenant sub-lets to others, other than a long term flatmate arrangement

If you’re still unsure about your property, you can contact us.

 

Learn more

How monthly insurance works

Put simply, monthly insurance means your insurance is renewed and paid for each month.  Its a month to month policy rather than an annual policy paid monthly.

 

What does this mean?

Rather than pay an entire years worth of insurance up front in one go, you can enjoy smaller monthly insurance charges.
Monthly insurance with initio is just like a monthly gym subscription, providing you with the flexibility to unsubscribe whenever you choose.

What is the difference between annual and monthly insurance?

Monthly insurance is a month-to-month policy, so once you commence the cover online we automatically renew your policy and facilitate payment on a monthly basis.  The cover will only stop if you go online and stop your cover, which is simple to do via your online dashboard.

Annual insurance means your policy is entered into upfront for a full 12 month period. Payment also occurs upfront and is then manually renewed and paid for by you each year.  The cover will cease if you don’t renew it.

You can look at monthly insurance the same way you look at a floating mortgage, with an annual insurance policy similar to a fixed mortgage.  With annual, because you have paid up-front you have locked that premium and cover in for the year.  With monthly you have locked the premium and cover in for the month and if premiums or levies change, so does your monthly charge.  This doesn’t happen very often, but if it does we will always let you know in advance by letting you know what your next month’s charge will be.

When does my credit/debit card get charged?

Your credit / debit card will be charged on the day you transact with initio (even if you choose a date in the future to start the cover).  Then each month initio will charge your card on the same day of the month that your policy renews (ie the original commencement date).

What if premiums or levies change?

Premiums can go up or down depending on the local New Zealand insurance environment. Events such as storms, earthquakes, flooding to name a few major events (or lack thereof) can have an impact on insurance premiums.  Also, the government makes changes to the levies they charge every now and again (Fire Service Levy, and Earthquake Commission Levy) which can impact on the cost of premiums.  On the average initio insurance policy these government levies make up almost half of the premium.
So…  that said, if premiums or levies change, then that change is effective from date after the your next policy period.  For example if the fire service levies increase from 1 November 2019 then all monthly and annual policies renewing after this date will be charged at the new levy.
If you have a monthly policy we will always give you notice of any change.

How do I pay?

By Credit or Debit Card.
When you start your policy you will make the first month’s insurance payment with your Visa or Mastercard credit/debit card.  Each month (on the same day you told us to start the policy), we will automatically renew and charge that same card each month (you can update your card online via your initio dashboard).

We will email you each month letting you know that your policy has been renewed and we will confirm the charge to your credit card.
We will also always let you know what next months charge will be.
You can stop the insurance payments by cancelling the insurance through your initio dashboard.

How does it work?

When you get an initio quote for your property you will be provided with both policy period options, yearly or monthly.
Example:  on 20th of February Barney chooses to start his monthly cover from 1 March. $92 per month.

  • Barney enters his credit card number (Visa or Mastercard).
  • On that day, 20 Feb, his card is charged $92 for the insurance period 1 March to 1 April.
  • Barney instantly receives confirmation of the insurance online and by email.
  • On the 1st of April Barney’s policy automatically renews and initio charges Barney’s credit card $92 for the insurance period 1 April to 1 May.
  • Barney receives a confirmation email from initio.
  • The monthly process continues until Barney chooses to stop the insurance cover.

Just like our insurance signup process and our claims,  we’ve kept it simple

What does it cost?

You’ll pay a bit more over an annual period if you are on a monthly policy, and that’s because its riskier for an insurer to provide a monthly policy compared to an annual one.  Premiums are based on risk.

Is it secure?

Yes.  We use well known secure payment provider, Stripe, to manage our monthly payments.  Stripe operates in 120 countries world wide and uses the most stringent level of payment security certification available in the payments industry.

Why insurance is non-negotiable

Smart Moves. Part I

Welcome to Smart moves: Insurance insights for property investors –  a straight-talking series built from an in-depth interview with seasoned investor Graeme Fowler.


With decades of experience and a sizable rental portfolio under his belt, Graeme shares how he approaches insurance as a key part of successful property investing. From managing risk to avoiding costly mistakes, each article offers practical, no-fluff advice for landlords who want to protect what they’ve built.
The first article in the series explores why insurance isn’t just a checkbox – it’s a must-have for every property investor, no matter the size of their portfolio.

Why do you think insurance is essential for rental properties?

“Insurance is a must-have. I’ve been investing in property for years, and over that time, I’ve had to make a handful of serious claims, usually for accidental fires. A couple of those meant tenants had to move out for months. Without insurance, the financial hit would’ve been huge.”

Graeme says he always makes sure each of his rental properties is covered with a standard insurance policy. While some landlords opt to include extras in their cover, it’s not something he prioritises.

From initio: All our rental property policies come with full replacement cover for sudden and accidental damage, along with automatic protection for things that many other providers charge extra for. What does this include? Loss of rent, methamphetamine contamination, and liability is part of our landlord insurance automatically.. It’s all included as standard – no add-ons, no need to build your cover piece by piece. Just smart, all-in-one protection that actually reflects how landlords use their properties.

What have you learned from making claims?

“Things can go wrong every few years, and when they do, it’s usually not minor. The biggest issue I’ve had was a fire that forced the tenants out for quite a while. That’s not something you want to try to absorb out of pocket.”

Graeme says it’s important to treat insurance as protection, not just another expense. His advice to newer landlords: “Don’t assume you’ll never need it. Sooner or later, you will.”

From initio: We’re here to protect what matters – because when things go wrong, they can go really wrong. We’ve seen too many Kiwis caught out without the right cover (or any cover at all), left to absorb huge costs on their own. That’s where we come in. You pay us to take on that risk, so you’re not left footing the bill when disaster strikes. Whether it’s fire, flood, or the unexpected, we step in when it counts. That’s the whole point of insurance, and why getting it right from the start matters.

What’s your approach to excess and premium payments?

“I always choose the highest excess I can, usually around $2,000. That keeps my premiums lower. But if you only own a couple of properties, a lower excess might be the safer choice.”

Graeme also avoids monthly payment plans.

“I always pay annually as it tends to be cheaper in the long run. And if I know the earthquake levy’s going up, I’ll renew early and lock in the lower rates. That’s saved me thousands across my portfolio.”

From initio: Our quick quote tool puts you in control. You can clearly see the full cost of your insurance, broken down by annual and monthly payment options, before you commit. Want to tweak your excess or add contents cover? The quote updates instantly, so you can find the right balance for your needs and budget. It’s clever, fast, and designed to make complicated insurance simple.

Do you add extras, like loss of rent cover?

“Only if it’s already included. I don’t usually add it as an optional extra.”

From initio: Our cover is comprehensive from the get-go – we include the things that matter, without charging extra for them. Other providers might treat them as add-ons, but with initio, they’re built in.

Do location risks change how you invest?

“Not really. Natural disasters can strike anywhere. Cyclone Gabrielle caused damage to thousands of homes, but none of mine were affected. That’s just luck.”

Graeme says trying to pick a “safe” region isn’t always practical. “Instead of worrying about where it’s going to happen next, I just make sure I’m covered if it does.”

From initio: Our quick quote tool includes hazard indicators like earthquake and flood risk, so you can go in with eyes open. It draws on trusted data sources to reflect your property’s actual risk. And if something does need a closer look, our team will review it quickly, so your cover is based on expert judgement, not guesswork.

What are the most common insurance mistakes you see landlords make?

“Paying monthly when they could save by paying annually. Choosing a really low excess and then getting stung with higher premiums. And not doing regular inspections – big mistake.”

He recommends inspections every three months, minimum. “That way, if anything does go wrong, you’ve got a clear paper trail and fewer hassles at claim time.”

From initio: Knowing what’s covered under your landlord insurance can save confusion if you ever need to claim. This support article explains the key parts of your cover, so you know exactly what to expect.

Would you ever self-insure?

“Never. Even if I owned 500 houses and didn’t owe the bank a cent, I wouldn’t go without insurance. One fire, one flood, one quake – that’s all it takes.”

Graeme sees insurance as a safety net. “You work too hard to build a portfolio to risk losing it overnight.”

Final thoughts

For Graeme, the value of insurance is simple: it’s peace of mind.

“It’s not about whether something might happen. It’s about being prepared for when it does.”

 

Coming up next in the Smart Moves Series:

Getting smarter with excess, premiums and payments – how to optimise your insurance spend without cutting corners.

Want the quick version?

We’ve pulled together the key takeaways from this series into our Landlord Insurance FundamentalsLandlord insurance guide Guide—including a bite-sized version of our interview with Graeme Fowler. It’s a great place to start if you’re after a practical overview of insurance essentials for NZ landlords. Read it here

 

Related support articles:

Five Tips to Insuring in a Flood Zone

Floods are the biggest cause of natural damage to property in New Zealand. Much of our country has a high flood risk, meaning many properties lie in or near flood zones. This makes insurers cautious when it comes to flood-prone houses.

The 2017 Edgecumbe flood was one of New Zealand’s worst in recent history.

If you’re looking at buying a flood zone house, we recommend you follow these five steps.

1. Check the LIM Report

The easiest way to find out if your house is in a flood zone is to read over the LIM [Land Information Memorandum] report for the house.

If the house has been identified by the council as being at risk to any natural hazards (including floods) this will be included in the LIM report. The Certificate of Title will inform you if a Section 36, 73 or 74 of the Building Act has been issued.

In simple terms, this means when getting building consent on the house, a natural hazard risk is declared.

The LIM report should provide you a good overview of the extent of the flood risk to the house.

2. Check online council hazard maps

If you don’t have access to a LIM report or do not want to pay for one, you may be able to find flood risk information online.

Most local councils now release public online Geo Mapping for natural hazard risks on houses. Unfortunately, each regional council has different maps so you will need to find the relevant one for your home.

Try searching the internet for your local council’s name and adding ‘hazard maps’ to your search term.

If you can find your council’s online mapping tool you will then need to filter through the different natural hazard types. Then enter your address and add the flood zone layers and you will be able to see how and if your property lies over a flood zone. There should also be information available about the extent of the flood risk.

3. Be prepared to pay more

If your house is in a flood zone it is likely you will be able to get cover. But it may not be with your first choice as insurers are more likely to decline cover in flood-prone areas.

Depending on the extent of the flood risk at your house, you may either pay more for a premium or have a significantly higher flood damage excess.

If we accept cover on your flood zone property, we may apply an imposed flood endorsement with a higher excess. An example of this endorsement can be seen below.

Example Flood Endorsement

We will not pay for any costs of additional materials, work or expense required solely to comply with Government or local authority bylaws and regulations, if those costs are required solely to meet the requirement of Government or local authorities to reduce the exposure to a natural hazard at the home.


An excess of $2,500 applies to any claim for water entering the Home as a result of flood, or inundation by seawater, replacing the excess shown in the schedule.


For the purpose of this endorsement, flood means the covering of normally dry land:
i. by water that has escaped or been released from the normal confines of:
a. any lake, or any river, creek or other natural watercourse, whether or not altered or modified, or
b. any reservoir, canal or dam,
ii. by rain water pooling or failing to drain away

4. Check how extensive the flood zone is

Flood zones cover much of New Zealand. Some are higher risk while others might only be minor, meaning it’s important to get an idea of the extent of the flood risk.

Risk is usually defined by the yearly frequency. The most common are 100-year flood zones. This means research and history predicts there is a 1-in-100 chance of a flood event each year.

If there is a 1-in-50 year, this means a flood is twice as likely to occur in any given year. A lower risk flood zone might only be a 1-in-200 year.

You can generally find this information either on the LIM report or mentioned on the council data.

5. Check the property isn’t at risk to other natural hazards

If you have a LIM report or found information online, it also pays to check the house is not at risk of other natural hazards.

Common natural hazard risks to houses in New Zealand include landslips and subsidence, or coastal erosion if the house is near the ocean.

Places like Whangarei are particularly prone to both landslips and flooding. It’s also common for flood zones to be around coastal erosion areas. Checking this will give you a much better understanding of the overall risk to the home.

How do I get insurance on my home that is within a flood zone or is within another high natural hazard area?

You can apply for insurance on your flood zone property by getting an instant quote via the button below. Please note the flood risk will need to be disclosed to us when you send an application. If you fail to disclose this to us, you risk having a future claim declined for non-disclosure.

Get Instant House Quote

In some cases, we can’t provide cover

As an online insurer we have limited scope to provide custom or bespoke terms.  Properties within some of the higher natural hazard zones often require adjusted premium and terms.  If we are sure that your property is one of several identified zones we will do our best to let you know up front when you check for a quote.  Therefore, in some cases our system will let you know instantly, the hazard zone identified and that we won’t be able to provide terms at this time.

Submitting a referral

If you are able and would like to proceed with your quote, select your preferred payment option at the bottom of the quote. You will then need to disclose the flood risk and any other relevant information during the declaration questions in the application.

This will submit a referral to us which we can then review. You will not have to pay for the policy at this stage.

We may confirm to provide insurance cover on your home, or we will ask for further information if required.

Flood & Landslip Questionnaire

If you still have questions, you can complete our Flood and Landslip Questionnaire and email it to [email protected] along with any supporting documentation. We will then review your application and confirm if we can provide insurance on your home.

If you have suffered a flood and are wanting advice on your claim, please refer to our helpful claim guide.

How Initio Became MoneyHub’s Editor’s Choice for Home Insurance Innovation

As an insurance provider committed to pushing the boundaries of innovation, it gives us immense pride to announce that Initio has been awarded the Editor’s Choice for Home Insurance Innovation by MoneyHub. This prestigious award validates our unwavering commitment to revolutionise the insurance industry and deliver unparalleled service to our customers.

Understanding MoneyHub’s Editor’s Choice Awards

MoneyHub’s Editor’s Choice Awards are a symbol of excellence and are the result of extensive research conducted by the MoneyHub team. As winners of the Home Insurance Innovation category, we are honoured to be recognised for our dedication to redefining the insurance experience for everyday New Zealanders.

Challenges in the Insurance Market

The insurance market, particularly home and contents coverage, presents unique challenges. With numerous providers and varying prices, it is difficult to identify a single “best” insurer. MoneyHub understands this complexity and strives to showcase insurers and products that go above and beyond standard offerings. Their focus lies in identifying providers that bring real value and benefits to policyholders.

Initio: Pioneering Home Insurance Innovation

We have always believed in challenging the status quo and embracing innovation at Initio. Our groundbreaking technology has transformed the insurance landscape, providing customers with an exceptional experience. By using our unique technology, we have entirely transformed the insurance process. Now, prospective customers can get a thorough assessment of their insurability and receive a quote for property premiums in less than six seconds. This remarkable achievement is unparalleled in our industry and sets us apart from traditional insurance providers.

In 2022, our collaboration with partners such as homes.co.nz allowed us to generate over 40,000 automated home insurance quotes daily. This partnership has played a vital role in bringing much-needed transparency to the New Zealand home insurance market. We understand the importance of empowering customers with readily available information to make informed decisions about their coverage.

MoneyHub’s Perspective on Initio

Christopher Walsh, MoneyHub’s editor, shared his insights on why Initio emerged as the deserving recipient of the Editor’s Choice for Home Insurance Innovation:

“The recent cyclone and flood devastation in early 2023 highlighted the urgent need for insurers to prioritize technology for claims and risk-pricing. In addition, immediate quotes for renewals and new policies are crucial for customers to compare and save. Initio, a forward-thinking insurer, has been at the forefront of technological innovation. The company received industry award nominations in 2019 and 2022 for their advancements in quoting and claim technology. Unlike many players in the industry, Initio embraces change and is dedicated to propelling the insurance industry forward, ensuring ordinary New Zealanders can obtain insurance pricing as swiftly as possible.”

Receiving MoneyHub’s Editor’s Choice for Home Insurance Innovation is a testament to our unwavering commitment to revolutionizing the insurance industry. We are proud of our innovative technology that provides customers with unparalleled speed and convenience in obtaining insurance coverage. At Initio, we will continue to push boundaries, leverage technology, and prioritize customer-centric solutions. Our mission is to empower ordinary New Zealanders by delivering cutting-edge insurance experiences that truly make a difference.

Insuring Old Houses

You’ve found your dream house: it’s a gorgeous bungalow from the 1920’s. It’s picture perfect, but will it be hard to get insurance?

Why are older houses harder to insure?

Before 1935, New Zealand had no unified set of building standards. Some councils had their own bylaws, but many had no standards at all. The 1931 Napier earthquake was a wake-up call; the scale of damage made it clear that many popular construction methods were unsuitable for a country built on active fault lines.

In 1935, New Zealand’s first set of building standards were introduced. These set the basis for the Code of Compliance regulations we have today.

Houses built before 1940 can be a riskier proposition, and insurance companies – being naturally cautious creatures – need to do a little more due diligence before agreeing to cover these properties.

So, can I insure my old house?

For houses built in the 1940’s onwards, no problem – we can provide an instant quote and cover online.

If your house was built before 1940 you can still get a instant quote, but we’ll need to check over a few more details before we can confirm cover. At a minimum, we will require that it meets the conditions below.

Our minimum requirements for pre-1940 houses

1. No original electrical wiring (including switchboards)

Electrical wiring in the early 1900s was cloth-wrapped rubber, insulated in metal conduit. This was highly prone to deterioration and has been a leading cause of house fires. As a result, many houses were rewired during the 1950s and 1960s.

However, there are still properties around with their original wiring. We need to have confirmation the original wiring has been replaced with TPS (thermoplastic-sheathed) wiring.

if you’re unsure, you can get a registered electrician to inspect and provide a wiring certificate to confirm it is TPS.

2. Roof replaced within the past 30 years, or in good condition

An iron roof is expected to last about 50 years. As a roof ages, it will rust and loosen, and leaks can develop. Good maintenance and regular painting will get you so far, but eventually it will need to be replaced.

Faulty roofs are a leading cause of property damage. Therefore, we will consider cover only if your roof has been replaced in the last 30 years or is shown to be in good condition.

3. No walls lined with Scrim or Sarking

Scrim is hessian sacking that is stapled to thin wooden strips known as sarking. Think of it as kindling and newspaper – the perfect fire-starter. Wallpaper was glued directly to the scrim, and in old houses this may have been wallpapered and painted over many times.

To check if your house still has scrim, try the knock test. Scrim will sound like you are knocking on wood, and it will be hard to distinguish any studs. The wallpaper also might ‘float’ or bulge in some areas or have a texture from the hessian fabric underneath.

Because of the increased fire risk, we need conformation there is no scrim or sarking, or that it has been removed.

4. No Historical Classification

Occasionally, older houses have a local council or government historical classification. This means there are strict rules around preserving the building style and fabric of the house. If it’s damaged, the government may require it to be repaired to a certain style with particular materials.

This can make a potential claim very complicated. Because there are rebuild requirements that we cannot meet – for instance, old houses often used native Kauri wood, which is no longer available.

We are unable to insure your house if it has a historical classification. You can search addresses on the government’s Heritage List here.

5. Exterior cladding has no outstanding maintenance

New Zealand homes are often clad in weatherboards, which were originally made from native timber. Unlike modern materials, weatherboards require frequent maintenance, including regular painting. Unmaintained weatherboards on older homes will begin to rot over time, reducing weather-tightness.

We require at a minimum that your house has no cladding defects, such as rotting.

6. Original piles and foundations with no defects

It is common for older houses to have foundational issues. Sagging or wavy floorboards are an indicator of problems with the piles. Check under the house for any cracks and signs of shifting, or decay in the timber piles. Mould can also be an early warning sign of weak foundations and other problems.

Sinking or rotting foundations are structurally unsound and therefore unsafe. For us to consider insurance, there must be no problems in your house’s foundations. Fortunately, old houses can be professionally re-piled.

My house meets those conditions – what’s next?

Fantastic, there’s a good chance your pre-1940 house can be covered. If you know your old home meets our requirements, go ahead and get a quote below.

Get an Instant Quote

Submitting a Referral

If you want to go ahead with your quote, you’ll need to scroll to the bottom, select your preferred payment method, then select ‘submit referral’. This will take you through our online application where you can submit a cover request for your house (you won’t need to make any payment just yet!).

Our team will review your application, and get back to you to confirm if we can offer you cover.

My home’s been fully renovated, what date of build do I use?

Whilst the fact that the home has been fully renovated will be of importance to us, you do need to declare the original home build date on the application as the decade built.

 

How does initio compare to my current insurance provider?

This is a question we’re asked all the time.

To make it easy, we’ve built custom policy comparison tools so you can do a side-by-side comparison to other popular New Zealand insurance companies.

If your insurance company isn’t included or there’s something you want us to add, let us know.

Compare house insurance

House Insurance Comparison

House Insurance Comparison

What makes good house cover?

Policy benefit limits will be different between insurers. You should look out for benefits like Alternative Accommodation and Hidden Gradual Damage and see if they are enough for you.

Conditions between policies also vary, but are less obvious. For example, different conditions will apply to unoccupied houses.

Extra benefits like no-excess glass cover can add value to your policy. These are often optional benefits, so you should check they are included when comparing price and cover.

Price versus cover

Choosing the cheapest premium is not always the best option.

A bare-minimum policy may save you money now, but you might be disappointed by the cover when you need to make claim.

You should compare how much cover you are getting, with the premium you are paying.

Understanding your house insurance policy will ensure you are getting the right cover at the best price.

Compare landlord insurance

Landlord Insurance Comparison

Landlord protection

A landlord insurance policy will typically have additional cover that a standard house insurance policy does not include. These are often called a Landlords Extension or Landlords Protection.

This provides cover for loss of rent, accidental and intentional damage by tenants, meth contamination and landlord contents cover.

These are designed to minimise the risks of renting your property. For example if your property is smashed up by the tenants there is malicious damage cover. If your house is flood damaged and can no longer be rented there is further loss of rent cover.

The level of loss of rent, meth contamination and malicious damage cover is very important to consider when comparing landlord insurance policies.

The house itself

You should also consider the level of cover provided by a policy for the physical house itself.

Almost all policies will fully cover the big risks like natural disasters, floods and fires. The difference of a more comprehensive policy will be in the additional extensions on top of the basic cover.

Extension limits vary between policies. You should check that they are adequate for your requirements. Common extensions include Hidden Gradual Damage, Keys & Locks, Retaining Walls, and Pipe Blockage.

Comparing conditions of policies are also important. For example, you might need cover for pet damage at your rental.

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Can more than one excess apply to a claim?

There can be unfortunate scenarios where you may have to pay your excess more than once when you make a single house insurance claim.

We try to make insurance transparent for everyone, but there are insurance conventions that we have to work with.  Applying an excess per incident can be particularly annoying if you’re not aware of it, so here’s some help to mitigate any future frustration.

Firstly, what does house insurance usually cover?

You might already be familiar with this. House insurance covers sudden and accidental events – something unexpected that results in physical damage. This will extend to intentional damage by tenants if you have landlord’s insurance.

Your house insurance won’t cover gradual damage over time such as rotting weatherboards. Like humans, houses need maintenance to stay in working order. There is no sudden (or unexpected) event that’s causing the rotting, so there’s no insurance claim.

If you have some unexpected damage, you’ll then need to pay your excess before your insurance kicks in. However, it’s not as straightforward as it sounds – because the excess applies to each insurance ‘incident’ and not just to each claim.

So, what’s considered an ‘event’?

The ‘incident’ is the time and place the damage or loss occurred.

For example, if something caused a hole in the wall on two different days, and in two different rooms of the house, then those would be seen as different ‘incidents’ – even if the landlord found all the damage on the same day and lodged a single claim.

Each separate incident could result in a separate excess being payable on each. Which can be a nasty surprise.

Why does this have to apply?

Trust us, this is something we want to avoid, but there is a reason it applies.

If a landlord could group all bits of damage over a tenancy into a single claim with a single excess charge, you could claim on any little dents and damage around the house. House insurance would begin to look like a property maintenance cover, and ultimately the premiums and volume of claims would become astronomical, and make insurance unaffordable for everyone.

What does a ‘multiple incident’ claim look like?

The most common example we see is when a tenant moves out, and the landlord discovers they’ve left behind a lot of unreported damage – holes in walls, stains in carpets, doors with broken hinges etc.

The landlord then files a single claim for recovery of all the damage. However, if it’s clear the damage was from multiple ‘incidents’ over the course of the tenancy, an excess is applied to each one.

This means the insurance payout is either much lower, or the claim will not proceed if all the excesses exceed the repair costs.

Damaged carpet

Stains in carpet – a sight all too familiar for landlords.

Exceptions to the rule

It isn’t always the case that an excess will apply to each piece of damage. This is where it can become a little technical, and on a case-by-case basis.

Multiple bits of damage at the same time

Sometimes multiple incidents are considered to be the result of a single source event, and only one excess will apply.

  • For example, if a tenant is given eviction notice, and decides to take this out on walls in anger before they leave; or if a party gets out of control, with predictable damage to doors, windows and carpets.

In these examples there is a single source that caused the event in an approximate time period. The interpretation of the source can be subjective, and every claim has its unique circumstances and will be considered on its own merits.

One excess per room

Policies are designed to cover damage resulting from a single event. When a ‘single event’ cannot be confirmed, most insurers apply an excess to each incident, meaning each stain/dent etc. However, at initio we believe this approach can be unfair, so we endeavour to apply one excess per room, per item of damage (one excess for wall damage in a bedroom, one excess for carpet damage in a room).

What about those ‘one excess’ advertisements?

Paying an excess per incident is standard practice. When insurers advertise that they charge only ‘one excess’, they are usually referring to a single event that causes damage across several policies.

For example, if a flood soaks your garage, car and some loose contents, you might only have to pay one excess – usually the highest. It’s one of those ‘check the fine print for the asterisk’ sort of promises.

What you can do to manage this risk

The best way to avoid all of this is to keep on top of the condition of your property with regular inspections. This will help identify bits of damage before they become widespread. If you’re recording the house’s condition for each inspection, you’ll also have a better idea of when damage was caused.

The best form of risk management is being a proactive landlord. Most landlord policy wordings include requirements, called landlord obligations – that you should get yourself familiar with.

Meeting these are a great way to reduce your risk; like screening tenants, monitoring rents, doing regular inspections and collecting a bond at the beginning of a tenancy.

Insurance is a two way agreement. The more you do to manage your risks, the better chance you have of avoiding an ugly multiple excess claim.

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Loss of Airbnb rental income due to Covid 19? Am I covered by insurance?

Homes that are rented out to short-staying paying guests are experiencing booking cancellations and reduced occupancy (loss of income) due to fears and government restrictions relating to Covid-19.  We take a look at whether insurance provides cover.

Covid-19, also known as the Coronavirus has caused major impact to visitor travel arrangements.  The reduced sentiment to travel as well as New Zealand’s move to protect itself from the rest of world with Government imposed restrictions on travel and self-isolation will and has lead to holiday home (Bookabach, AirBnB etc) cancellations and reduced future bookings.

So, as a AirBnB or Bookabach property owner is there insurance for loss of income where there is no physical damage to the property?

The short answer is No.  Let’s explain;

  • Most insurance policies include a Loss of Rents provision that specifies an amount of cover (e.g. $20,000) and a payment period (e.g. 12 months)
  • This cover is triggered by a physical loss to the home or property that results in house being unliveable.
  • Some common examples include, a fire at the property, a burst pipe that floods the house, earthquake damage or rising flood waters.
  • The policy responds to cover the damage from these things and also the associated loss of rental income while the damage is being repaired.
  • So, if the property is a holiday home and is damaged the loss of income would include the confirmed bookings you know about that need to be cancelled, and the other future bookings you miss because the property is not available to be booked.  Its the perfect solution…. until non-physical things like Covid-19 come long.

No physical damage – the Covid situation

As Coronavirus (or any other illness, virus or disease for that matter) does not cause any physical loss to the property, it does not trigger the loss of rents cover.  The key component for cover is missing.

But wait, what about cover loss of rents due to tenant eviction and prevention of access and the like – that’s not physical damage?  Yes, some policies like Initio, have a special benefits that provide loss of rental income cover from other causes that are not necessarily physical.

The one that is most relevant here is the ‘prevention of access’ policy benefit.  Prevention of access relates to not being able to access the property, and typically comes in the form of a road closure or a washed out driveway for example.  While Covid-19 is causing bookings to be cancelled, access to the property is not actually prevented, meaning that this part of the cover does not provide any assistance for Corona virus related income losses.

It is also important to note that most house insurance policies out-rightly exclude cover for “financial loss or expense of any type in connection with a Notifiable Infectious Disease under the Health Act 1956”.

While this provides little comfort to holiday home and own home owners who rent out their properties to short term guests, it does mean that home owners can make informed decisions about how to manage their lower income risk over the coming months.

About Initio

Initio is a New Zealand-based online house insurance provider.  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.

Covering landlord insurance, short-term holiday rentals and home and contents, Initio specialises in tailored online property insurance, including an all-in-one landlord insurance with built-in cover for loss of rent and damage by the tenant.

Having completed over 35,000 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.

 

Code of Compliance

Code compliance is generally required to insure a house. But don’t worry, there are situations where we can potentially provide cover.

Most Common Reasons for Non-compliance

House or addition built before code compliance requirements

The current building code compliance requirements came into force in 1992. Homes built before this date often do not have code compliance, as it was not a requirement at the time.

Records of building consent have been lost or are unknown

It is surprisingly common for houses to lack a record of their code compliance sign-off. Some councils in New Zealand lost their records in fires and floods before they began storing them electronically.

Code compliance was not obtained for part of the home (e.g., extension)

Previous owners may have made improvements to the property, such as adding a deck or building an unconsented garage, without obtaining full building consent or sign-off.

 

What would we require to insure?

If your home lacks a compliance certificate for any of the above reasons, we can consider insuring it. If your home does not have a code compliance certificate this does not always mean your home is non-compliant, especially if records have simply been lost. To insure your house, we would need confirmation of the following:

  1. House is structurally sound and well maintained, AND
  2. Confirmation that the building or addition would have met building requirements at the time it was built/completed

Essentially we want to make sure we only insure houses/renovations that are up to building standards.

You must disclose information regarding any unconsented work when you apply for insurance.  Please answer “yes” to the question “Is there any further information likely to affect the acceptance of the insurance” on your application form, provide full information in the space provided along with any other disclosures. 

Other Reasons for Non-compliance

New Build or Recently Built Property

When a house is built, it must legally obtain a Code Compliance Certificate (CCC) before being occupied. In most cases, homeowners cannot move in until this certification is issued. However, if your house is a new or recently built property, it may still be awaiting code compliance while requiring standard house insurance. In some cases, homeowners may have already moved in before obtaining consent, often due to minor works still in progress.

What Do We Require for a New Build?

Before we can consider insurance for a new build without a Code Compliance Certificate, the property must meet the following requirements:

  • The house has practical completion,
  • There is a functioning kitchen/bathroom
  • Connection to services is complete, including power/water supply.
  • The house is fully secure, and lockable.
  • Someone is currently living in the property.
  • No major or structural work remains to be completed.
  • A final inspection is confirmed and booked with the council. In higher-risk locations, the inspection must have at least been completed.

If your property meets these criteria, we can consider providing cover. However, you must disclose that a Code Compliance Certificate has not yet been obtained.  

Conditions That Will Apply

If we agree to provide cover on your house without code of compliance issued, there are conditions that will apply. It is important that you are aware of these and know what they mean. These conditions are as below:

1. Additional costs associated with making the home compliant may not be covered

For example, we will pay to rebuild a non-compliant deck on your home that has burnt down. However, you will need to pay for any extra costs if you want to get code compliance sign-off on the new deck.

2. Any loss that directly arises from the lack of compliance will not be covered

For example, where your non-compliant deck collapses and also causes damage to the house. If the collapse of the deck is later proved to be a direct cause of its non-compliance (i.e. the deck was not up to building standards), then damage to the deck and home may not be covered.

Note that any other loss that is not a direct result of non-compliance (such as a storm or fire) remains covered.

3. Any loss that arises from the construction perils to complete the home and obtain compliance are not covered

If there are still major works being done at your property these are not covered. If a roof is being installed and it collapses, this should be covered under a contract works or construction insurance policy as this is not covered under a standard house insurance policy.

4. Building consent to be obtained within a specified period, typically 30 days.

This gives you some time to get code compliance approved. If you need longer than this you will need to let us know.

How can I get a quote?

If your house does not have full code compliance but meets the above criteria you can go ahead and get a quote. If you proceed with the quote you will need to disclose that the property does not have full consent when you answer the declaration questions during the sign-up application.  Cover will then be reviewed by our team who will be back in touch.

Get an Instant Quote

Examples of where we can provide cover

  • Compliance certificate is not signed off as the driveway is unfinished. Driveway concrete will not be laid until construction is complete on the neighbouring home as trucks are using the driveway for access. The home is structurally complete, fully secure and lockable, and is being lived in. – Cover is able to be provided.
  • Final code compliance check was completed by the council in December, minor and non-structural defects were identified, and repairs were completed. Due to the Christmas break, council staff were not able to return to issue the code compliance certificate until mid January. The home was structurally complete, fully secure and lockable, and being lived in. – Cover is able to be provided.

Examples of where we are unable to provide cover

We can not offer insurance if your home does not meet the above requirements, or does not have code compliance certificate for reasons such as the following:

  • Code of compliance certificate was applied for, but the building work contained defects which were not rectified.
  • House was self-built and consents were never obtained.
  • Home is a converted building (such as a wool shed or garage) and the conversion was not consented.
  • A certificate of acceptance was applied for and denied because the building work contained defects.
  • A safe and sanitary report confirmed the building work was unsafe and/or unsanitary.
  • The builder’s report on the home identified that the building was not structurally sound.
  • A pre-built/existing home has been moved onto the site and code is yet to be obtained for the placement/connection to services, etc.
  • A garage converted to a home/self contained unit/sleepout, where it does not meet building standards for an inhabitable building.
  • Renovations involving structural walls without consent.
  • An outbuilding was built without consent as floor area was below local government requirement for consent but was not built to building code standards

 

How do you legalise existing building work?

Building work carried out before 1 July 1992 without the appropriate building approval requires a safe and sanitary report. A “safe and sanitary report” does not serve as an approval of the unauthorised work, just a reassurance that the building is safe and sanitary. You will need to engage a professional such as a private building consultant or registered engineer to complete this report. It will be held on file with the local council.

A certificate of acceptance is the appropriate way to legalise any work done after 1 July 1992. It provides limited assurance that the council has inspected the home and the completed building work complies with the building code at the time and contains no obvious defects.

Articles of interest

How can you quote insurance for my property without asking questions?

At initio, we don’t ask you 30 questions to get a house insurance quote. We simply ask one – what’s your property address?

We can do this because we use verified property data instead of manual forms. By entering your address, our system pulls key details automatically, letting you see a quote in seconds.

While many insurance providers rely on long application forms and manual inputs, our system does all of this heavy lifting for you behind the scenes. In a few clicks, you’ll see a quick quote – no fuss, no obligations.

How does initio know about my property?

A quick quote is the starting point for your house insurance policy. It’s based on verified property data from sources like LINZ and local councils – things like the size of the home, its construction, and whether it sits in a flood or earthquake zone. 

Let’s dive into this a bit more.

Why we don’t need you to answer a lot of questions  

Because our quoting engine already knows the answers. And if we see something missing, our underwriting team steps in to review it with you.

Behind the scenes is Locatio, initio’s in-house property risk scoring platform. It checks things like:

  • The age of your house
  • The floor area in square metres
  • Whether you’re on town or tank water
  • If the home sits in a natural hazard zone (like floodplains or seismic areas)

This lets us assess risk instantly and provide a quote without needing to quiz you first.

Fun fact: When we first launched our quoting system, it was so fast that people thought it hadn’t worked properly. We had to add a loading screen just to provide confidence it was doing something.

initio quote loading screen

We keep it up to date by regularly refreshing the data and adapting it to new hazard insights across New Zealand. That means what you see on screen is backed by real-time information and market-leading risk modelling.

Why we built Locatio

It was built by our in-house development team in response to one of insurance’s biggest pain points: slow and confusing quote processes. By building an innovative platform to minimise a pain point in the industry, we can power thousands of quotes every month for almost every property in New Zealand, in seconds. 

Does this affect my cover or my ability to choose?

No, initio’s quoting tool allows you to view at glance what you could be paying. Once you have viewed your quote, you can tailor your cover by adjusting the sum insured, choosing your excess, and adding any extras. It’s simple, clear, and takes minutes, not hours.

When we might still ask for more information

Sometimes our quoting system may not be able to find or pull data for your address. Because Locatio relies on council and LINZ data, there may be occasions where this information isn’t available. If that happens, we may need to ask you for a few extra details.

Things like new builds, title changes, multi-unit properties or subdivisions can cause the information to be unavailable due to the council records or data not being updated as of recent. Sometimes our quoting tool may not be able to pull one piece of information that is missing.

When this does happen, you will be reverted back to the property information and asked to manually add it in. While this may cause an inconvenience, it is important we have this information so we are able to calculate the risk at hand. 

So what does this actually mean for you?

All of this clever tech is there for one simple reason: to make getting house insurance easier, faster, and less frustrating.

For you, that means:

  • You don’t have to hunt down paperwork or guess details about your home
  • You can get a quote in minutes, not hours
  • You can see a price upfront without pressure or obligation
  • You’re less likely to get surprises later, because the quote is based on real property data, not assumptions

By using verified information from the start, we reduce back and forth, delays, and confusion. You stay in control, with clearer information and fewer hoops to jump through.

In short, less admin for you. More confidence in what you’re looking at.

Our technology doesn’t stop at the quote

The same thinking behind our quoting tool runs through everything we do.

If your situation is straightforward and uncomplicated, you can:

  • Get a quote
  • Tailor your cover
  • Set up your policy
  • Become a customer

All in just a few minutes, online.

That tech-first approach also carries through to claims. Lodging a claim is designed to be simple and clear, with digital tools that guide you through the process and keep things moving. No unnecessary steps, no guesswork about what happens next.

We use technology where it genuinely helps, and people where it matters. That balance is what allows us to move quickly without losing the human side of insurance.

Summary

What began as a simple solution to a common problem has grown into an award-winning innovation. But the real benefit isn’t the awards. It’s the time saved, the clarity gained, and the confidence customers feel when organising their house insurance online.

 

Related questions and topics

Written by Natasha Arnett

Natasha has been with initio since 2023. In her first year, she worked closely with the support and marketing teams before moving into digital marketing.

She has studied with ANZIIF and holds a qualification in Understanding General Insurance Products and Policies. She also completed a Bachelor of Business at the University of Waikato, majoring in Strategic Management and Marketing.

How does Claims Grade and Knock-for-Knock work?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How do Insurance companies apply the Driver Grade?

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

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Top 4 Mistakes when Insuring a House

Getting the right house insurance is an important decision you want to get right. Here’s the top 4 mistakes we see, so you don’t make them.

1. Reducing your sum insured to save on your premium

People often think to reduce their sum insured for a lower premium. Insuring something for less than what it’s worth is called ‘under-insurance’.

This is a risky move where you’re banking that you won’t have major damage to your house that costs more than your sum insured to repair.

The idea of insurance is to put you in the same position you were in before the damage. If a fire fully burns down your house and you’re not fully insured, you could easily face being thousands (if not, hundreds of thousands!) of dollars short when you want to rebuild.

You will notice the effect of decreasing (or increasing) your sum insured actually has a relatively small affect on the premium. So you’re best off fully insuring your house, as it might only cost around $50 more to do.

2. Not thinking about an accurate sum insured

People often expect their insurer to know how much their house should be insured for. The reality is that you will need to come up with an approve a replacement cost estimate for your house.

Our quote calculator will give you a ‘base’ replacement sum insured from a fixed amount of rebuild cost we apply per square metre. You’ll then need to fine-tune this figure to one you think is enough to fully rebuild your house.

If you’re not sure there’s some useful tools available to help. The Cordell Sum Sure Calculator uses council data on houses to give you an estimate, and works for most house across New Zealand.

One of the most common mistakes people make is not considering all the factors in the sum insured figure. The most common being demolition costs, which can be significant. You should also take in account value of outbuildings and other things like fences, retaining walls or swimming pools. Lastly, it’s a good idea to allow for the affect of building cost inflation on top of this.

3. Not choosing the right excess

People can be caught out by selecting excesses that are either too high, and low.

Sometimes we see people select a higher excess like one over $1,000, but then when they make a claim find it’s too high and they struggle to afford to pay it. When selecting your excess ask yourself: “how much money can I comfortably afford to stump up if something goes wrong?”. If the answer is less than $1,000, you should pick an excess below this.

There are also people that tend to select excesses that are too low. If you keep enough cash on the sidelines and you don’t claim for smaller losses, you can take a higher excess to save on your premium. If you wouldn’t bother claiming for anything less than $1,000; you shouldn’t spend your money insuring it.

4. Choosing the cheapest or most expensive policy

Cheap doesn’t always mean the best value for money. Generally cheaper policies tend to have lower levels of cover. But this isn’t always the case, so it’s important you do the work to compare cover between insurers with the premium you’re paying to see where the best value is.

By the same token the most expensive policy doesn’t necessarily mean the best cover for your needs. You could be paying extra for cover you don’t need. Do you need extra cover with a higher limit for swimming pools if you don’t have one?

Taking the time to find a suitable policy could save you hundreds.

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How do I buy my first policy?

Wondering how to get your first policy with initio started?  This guide outlines the entire process from getting a quote to paying for your policy.

It takes you through the basic steps of quoting, customising and changing your cover, disclosing other information and making payment.

Once you have purchased your first policy with initio,  you get access to a personal dashboard where you can modify and manage all your policies online.

Get an instant quote – enter property address

If your address doesn’t come up with the details you have entered, please use the blue option below the address box that then comes up showing as “I can’t find my address”.  Clicking on that option will let you enter both the house number and street manually.

If your home is a new build in a particularly new street, potentially our database may not be able to locate the street, if so, please give our team a call to obtain a quote.

Select property use

If you’re uncertain about the type of property insurance that best suits your needs, visit our ‘Choosing Your Insurance‘ support page.  There, you’ll find detailed information and guidance to help you make an informed decision tailored to your unique circumstances.

Customise quote

 

From here you can edit the details of the quote and customise as required.  This can also be done from a home quote you have previously emailed yourself using the “restore” button.

Uncertain about the proper amount to insure your property for? We’ve designed a support page that walks you through the essential factors you need to consider regarding the sum insured.

Choosing the right amount of insurance for rebuilding your home is important. This amount should be what it costs to build your home again, not what your home is worth on the market. Don’t forget to include things like fences and swimming pools, and remember that building costs might go up over time. For example, if two neighbors with the same houses insure for too little or too much, they could lose money if their houses are destroyed. The right amount saves worry and money. Tools like the Cordel Sum Sure Calculator can help you figure out how much it might cost to rebuild your house.

If you’re wondering about how much excess you should have on your insurance policy, this support page covers some of the basics.  Many property owners choose to cover minor losses themselves, avoiding insurance claims for low-value damages. If this applies to you, consider raising your excess to $1,000 or $2,000 to save on premiums. Think about what you’re comfortable claiming for and your financial risk tolerance when selecting house insurance. Under initio’s landlord insurance, tenants only cover the excess on careless damage, so assess your comfort level with potential out-of-pocket expenses, and set your excess to match your ability to absorb those costs.

Insurance Start Date? Enter the date that you would like the cover to start from should you proceed with purchasing.  If it’s a new home, that should represent the sale’s settlement date.  If you’re changing from another insurer, use your existing expiry date.  Please note that we are only able to provide confirmed quotes for policies with effective dates of up to 30 days in advance.  If the effective date you need is more than 30 days ahead, please wait till you are closer to that time to quote/apply.

Once you are happy with your customised quote, you can either;

  1. Email yourself a copy to save a copy of the quote
  2. Proceed to purchase the policy by selecting either the “annual” or “monthly” payment option at the bottom of the quote.  Then follow the steps below.

 

Enter property details

A note about selecting start date of cover; ensure its the same date as the expiry/renewal date of your current policy to ensure cover continuity (or the settlement date if purchasing a new house)

Confirm your details

Complete online proposal form

 

Unsure if something may affect your cover? Disclose it

How to sign your application form

Use the device keyboard to type your name in full (as the person completing the form) in the space provided.

 

Review and make payment OR Application requires a review?

If the payment option isn’t offered it’s because a human will need to review the application for you.  Please continue to submit the application for review and we will aim to come back to you within one business day to let you know the status of the request.

Otherwise, if the payment option is available, you can either

  • proceed to purchase the policy OR
  • if you’re not ready to commit or haven’t yet bought the property, you can choose to download a “letter of intent” on this page.  The letter of intent simply outlines that based on the information provided we are able to insure the property when you’re ready.

ALL DONE! We will instantly email you confirmation documents

first policy guide

 

Want to add another property? Click “Add insurance”

first policy guide

Need to make a change to your policy?

Refer to our guide here.  Our website is informative and the go to for accessing your account.  No need for an app, our site is available in a user friendly format on all your devices.

Looking for more information? Our top five mistakes to avoid when insuring property article might help.

If you would like to see how initio compares to other popular New Zealand insurance companies, start here.

Adding or changing your policy

Looking to buy a Motor Vehicle Policy?

Our vehicle insurance is exclusive to our home policy holders.  Once you become a home policy holder with initio you can easily add car insurance from your initio dashboard using the “vehicle insurance +” option.

 

Ready to begin your journey with initio?

Get a quote

 

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