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

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

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

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

Key takeaways in this article

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

What is a house insurance calculator?

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

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

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

Rebuild cost is different from market value

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

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

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

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

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

What your sum insured should cover

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

That can include:

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

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

What can affect your rebuild cost estimate?

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

Renovations, unusual features, and non-standard materials

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

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

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

Size, layout, and standard of finish

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

Things that can affect the estimate include:

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

Site access and demolition costs

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

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

House and contents cover are different

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

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

Why it is important to review your sum insured regularly

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

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

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

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

When should you get a more detailed estimate?

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

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

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

Why this matters in New Zealand

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

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

Final thoughts

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

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

You might also be interested in:

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

Frequently asked questions

How do I calculate my sum insured?

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

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

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

Does my sum insured include the land value?

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

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

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

How often should I review my sum insured?

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

Written by Toby Pudney – Initio’s Support Team Lead

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

As you pay for your insurance you might wonder where your premium is going? And how is it calculated? This guide explains what makes up the cost of house insurance and how it’s calculated.

Insurer Premium

This is the insurers cut of the pie and is what the insurer receives in compensation for taking on the risk that you don’t want to carry yourself.  This is the variable component of the overall premium which will be higher for riskier properties and lower for a less risky property.

For example, a premium comparison between a landlord insurance policy for a rental property located in Auckland and one located in Christchurch will show a significant difference in premium.  This difference in premium is due to the risk exposure to earthquakes. However, there are many factors that determine the premium of your property – such as the relative exposure to weather events, flood zones, vulnerability to theft and the historical record of claims in the area.  

In short, insurers use the following factors to calculate what premium they want for the risk.

a) Location of your property

The cost of your insurance is mostly based on how likely it is that your area will have an earthquake or storm. Some places are more at risk than others because of past claims. Nowadays, many insurance providers use “risk-based pricing.” This means areas with less risk, like Hamilton, no longer help cover the cost for higher-risk areas like Napier.

b) Water supply or distance to fire station

The closer a house is to a fire station and the better the access a property has to water, the less likely it is to burn to the ground. For example, a rental property immediately next to a fire station will have a lower premium than a rental property that’s 30 minutes out of town and has rainwater tanks for its only form of water.  

c) Age of the property

Houses built prior to the 1940’s are more likely to have older building materials and methods. A common cause of damage are electrical fires caused by old and corroding wiring. Water damage from by old pipes failing under increased town water pressure is also common. Learn more about insuring older homes here.

There are also certain decades where the New Zealand construction industry (and the Government) allowed the use of certain plumbing products and cladding systems that continue to be a source of significant property damage. Houses built in the 1980’s are most likely to be constructed with Dux Quest piping and fittings. Quest was taken off the market in the late 1980s but there are still a number of houses suffering water damage from poor performance of water pipes and fittings.  

d) Use of the property

This one goes to human nature. It’s a fact that people take better care of things they own. This means that houses occupied by their owners have few losses than those occupied by tenants or short staying guests. A rental property attracts landlord risk (such as malicious damage and loss of rents) so a landlord insurance policy will cost you more than the insurance cost for your own home.  

Holiday homes are often empty for longer periods of time. This can make water damage more expensive to fix. There’s also a higher chance of break-ins and burglary.

e) Replacement value of the property

The more your house is worth, the more you’ll pay for insurance. But it’s not as simple as saying a $1,500,000 house costs twice as much to insure as a $750,000 one. After a certain point, the cost of insurance goes up more slowly. This is because most insurance claims are for small things, like a leaking pipe, rather than big things like a house fire.

f) Excess and extras

An excess is the amount you’re willing to pay when you make a claim. The more you agree to pay, the less risk for the insurance provider, especially for small, frequent claims.

Adding extra types of cover can also make your premium go up. For example, if you decide to increase your ‘loss of rents’ cover, you’ll pay more.

Government Earthquake Levies

Your insurance cost includes a government earthquake levy. This money goes to the New Zealand Natural Disaster Fund. It covers natural disasters, like earthquakes, up to $345,000 including GST. Since October 1, 2022, this levy has gone up to $552 including GST for each home covered by your insurance each year.

If an earthquake happens, the first $345,000 of damage is paid for by the Earthquake Commission. Any amount over that is covered by your insurance provider. We collect this levy as part of your total insurance cost and give it to the Earthquake Commission.

Government Fire Service Levies

Your insurance also includes a fire and emergency service levy. This helps pay for emergency services like fire brigades and ambulances that benefit everyone in New Zealand.

This levy is $106 + GST for each living unit, and an extra $21.20 + GST if you also have cover for contents. Like the earthquake levy, we collect this money as part of your total insurance cost and give it to the Government. Even if you choose not to have home insurance, you’ll still benefit from these services.

Goods & Services Tax

Like all domestic goods and services in New Zealand, a 15% GST tax is then applied to the total insurance cost (insurer premium, NHC (was EQC) levy, and FSL levy). The total of all four of these makes up the total premium payable by you, the insurance customer.  

As a practical example, a single unit landlord insurance policy with a total annual insurance cost of $1,000 including GST consists of 55% government levies and GST.

Where can I find the breakdown?

On our quotations and options of renewal, you can find the breakdown immediately below the monthly and yearly total cost figures.  If you hover over the coloured bar, the system will display each relevant amount.  Once you purchase a policy a receipted Tax Invoice will be emailed to you which outlines the full breakdown.  Historical Tax Invoices can also be downloaded from your initio dashboard at anytime.

This guide has been produced to provide more transparency on how insurance premiums are calculated.  Much of the way the insurance industry operates is a ‘black box’ of jargon – but when it comes to something so important as the cost of house insurance it shouldn’t be complicated. 

USEFUL ARTICLES

• Why has my premium changed?
• Why does my rebuild value change?
• Why do premiums increase?
• Why do you need house insurance?
• How to set up an account with a visa debit card

Here’s what you need to know to insure your main home if it’s also rented to short-term guests.

What can be covered? A shared primary residence

If the house is your primary residence, we can cover your own home that’s also rented with our Own Home Rented product. However, it’s required that you share the use of the property with guests.

The two most common scenarios for renting your own home are:

1.  You rent out part of your home to short stay guests while you still live in the property (e.g. a room or downstairs).
2.  You rent out you whole house to short stay guests when you’re not living there (e.g. you go overseas or stay in your holiday home).

If your house is not your primary residence, it may be able to be insured as a Holiday Home also Rented. Learn more about insuring holiday home rentals here.

Essentially, our guest rental cover only applies to properties that have shared use (at-least occasionally) by the owner. We’ll explain why next.

What can’t be covered? A dedicated short-stay accommodation

We can’t insure a dedicated short-stay living unit that’s only used for guest accommodation. When a unit is used solely for guests it becomes a commercial property – similar to a motel.

The EQC’s $150,000 of natural disaster cover will not apply to a ‘dedicated short stay’ as they are considered commercial risks. Our domestic house insurance policy assumes part of the natural disaster risk is covered by the EQC. A dedicated short stay rental therefore needs to be covered under a commercial material damage policy, where the insurer covers 100% of the natural disaster risk.

Please note the definition of a dedicated short stay property is any living unit that is set up purely as a commercial enterprise and the owners don’t use it or intend to use it for their own purposes (or for somebody else to use it as their home).  

Is a secondary unit at my house covered under my house insurance policy?

Yes, as long as it’s not a dedicated short stay unit – and it’s used by yourself (at least occasionally) as part of your own home.

It’s common for people to have an additional self contained living units at their houses. It’s common to have a separate unit at the back of the house, or a downstairs living unit with its own access. Often these are rented to short term guests (via Airbnb or BookaBach), or longer term boarders for additional income.

If you don’t use this unit yourself (at least occasionally) then we can’t insure it together with the main house.

If the unit is used purely for short terms guests a commercial policy is required. If the unit is simply rented to tenants you’ll need a separate landlord insurance policy for it.

Short Stay Airbnb Unit Example

If the additional unit is used by both the owner and short-term guests we can provide cover under our own home rented.

If the additional unit’s use is shared by the owner (themselves or family) as well as short-stay guests, it can be covered under our Own Home Rented product.

When the living unit is solely rented to guests and not utilised by the owner,  it is deemed a dedicated short stay. EQC cover does not apply, and we can’t provide cover.

An example of this is where the unit is used for children when they return home from university and other times the unit is rented to short stay guests. This can be insured under a Own Home Rented policy on the main house.

Renters or Boarders Unit Example

If the rental unit (for example downstairs unit) is only used for a longer term tenants (i.e. more than 90 days) or boarders and not utilised by the owner themselves – this can’t be insured under a single Own Home Rented policy. In this instance, a separate Landlord Insurance policy is required to cover the self-contained rental unit.

If you need help working out which insurance or combination of insurance is best for you, see our home & income insurance page.

What is Covered?

Our Own Home Rented product takes all of the standard owner occupied policy features, and includes extra cover for the risks of renting. You can also choose to add personal household contents cover. You can get the peace of mind that your property and contents itself is covered, while the risks associated with renting your house to guests is insured.

Generally a standard house insurance policy won’t cover guest risks, so it’s important for owners to get the right cover. The extras included in the own home rented cover includes:

• Accidental or intentional damage by guests
• Theft by guests
• Loss of rent following damage
• Owners liability cover

Learn more about what the Own Home Rented policy covers.

What happens if my house is too damaged and can’t be lived in?

If your house is too damaged to be lived in (like a fire or flood) there is cover (up to $20,000) to go towards moving into a temporary house while repairs are completed. If you also get regular rental income from guests there is cover for your lost rents you would otherwise have got if your house wasn’t damaged.

We provide $20,000 of loss of rents cover for free, with options to increase to $40,000 or $80,000. Both loss of rents and alternative accommodation have a payout period of 12 months.

The Loss of Rent calculation will take account of future actual guest bookings that are cancelled, and expected bookings based on the same period in the previous year. If you are new to the home and income game then we will use short-stay occupancy rates in that particular region to estimate the loss. If you have a boarder or tenant with a fixed weekly rent then that amount will be used.

The policy aims to put the owner in the same financial position they were in before the loss, by paying for the repair costs and lost rental income – all while paying for the owners temporary accommodation costs.

Home and Income Insurance

Buying a home or property is a large part of the classic Kiwi lifestyle, and it tends to be the biggest investment most Kiwis will make in their lifetimes. When it comes to arranging house or landlord insurance, New Zealander’s want peace of mind for their asset – and so some property owners will seek advice from their insurer. However, others don’t – and those investors remain unaware of these avoidable insurance pitfalls. We’ve put together a list of the top five mistakes people make when purchasing house insurance, so you can avoid making them too.

1. Saving money on your premium by reducing the sum insured

On face value, it seems to make sense: reduce the sum insured to pay less premium. You could justify this by calculating the odds of having a total loss are slim… but therein lies the issue: what if you do have a total loss? Would you be able to rebuild the house (and its site improvements, such as driveways and fences) if the insurance proceeds were less than you needed? House insurance is about getting you back on track – replacing like for like, and ultimately, saving you from financial ruin by properly protecting your home and investment. When calculating your sum insured, you need to know you’ll be covered in a worst case scenario. If you are wanting to save on premium, insure the house for its correct replacement value and consider a high excess; which means you’ll still be covered for the big stuff while also saving money on your premium.

2. Not knowing the replacement value of the property

Some property owners assume that insurers know how much it will cost to replace their home. The reality is that while an insurer might provide a guide they don’t actually know your house like you do. Insurers and brokers are not valuers or quantity surveyors and they are not materials cost specialists. When you get an instant quote from initio, the sum insured is based on a standardised per square meter rebuild cost, but it’s important to know that all houses are different as some will cost a lot more than this, and in those cases the sum insured should be increased. It is also important that the property owner or landlord takes account of improvements such as driveways, fences, and pools when calculating the replacement value.

initio guides you to tools, such as online sum insured calculators, to assist property owners with calculating their rebuild value. If you’re still unsure, or you want to be precise consider engaging a quantity surveyor such as Construction Cost Consultants.

Replacement Value Calculator

3. Not choosing the right excess

A large number of property owners are happy to avoid the claims process by not claiming for smaller losses, and just repairing or replacing low-value losses themselves. If this is you and you have a low excess (of say, $400), we recommend increasing this to $1,000, or even $2,000 to save money on your house insurance premium.

If you wouldn’t bother claiming for anything less than $1,000, why would you waste your money insuring it?

On the flip side, if you wouldn’t be comfortable contributing the first $2,000 each time you claim, then a lower excess will be best for you. It’s certainly personal preference but we encourage property owners to think about their own financial risk tolerance when purchasing house insurance. Remember that under initio’s landlord insurance policy the tenant is only responsible for covering the excess on careless damage claims, so don’t assume they will be paying the excess every time there is damage at your rental property.

Ask yourself; “How much of a dent to my cash flow am I able to cover myself?”  This amount is what your excess should be.

4. Choosing the cheapest (or most expensive) policy

Cheap doesn’t necessarily mean good. To ensure your home insurance  adequately protects your most valuable asset, you need to make sure that you have the right cover. If for example, where the property is tenanted, an own homeowner’s insurance policy won’t cover you for damage caused by tenants. By the same token, the most expensive policy isn’t necessarily the best either. You could be paying extra for a brand name, its marketing budget, or bells and whistles that are simply not relevant to your to situation and requirements (such as ‘hole in one’ compensation…), or you could be unknowingly paying a middleman to just clip the ticket.

It is recommended that you take the time to understand what you are getting for your money. A good place to start is your insurance policy wording. initio has recently launched a policy comparison tool on our homepage to makes things a little easier for the customer when deciding on their house insurance.

5. Thinking that house insurance should cover everything

There are some losses not covered by a house insurance policy. Some of these are un-insurable, like leaky house syndrome and acts of terrorism. Other risks might require an additional policy, such as a contract works policy if you are doing renovation work (removing the roof or exterior cladding for example). Gradual things like wear and tear are not covered either; an insurable loss needs to be caused by a sudden and accidental event; insurance is not designed to pay out every time the property needs maintenance work done or a tenant leaves the house messy and worn. These things are just part of the risk parcel of being a homeowner or landlord. Consider that if your policy covered every possible loss, the annual premium would be tens of thousands of dollars.

Remember, your insurance policy needs to work for your own peace of mind, so make sure you consider what risks you want covered, and what risks you are comfortable absorbing – keep the above tips in mind when making this decision.

Useful articles

• Five fundamentals of house insurance
• Busting house insurance myths

Renovations may or not be covered by our house insurance depending on whether it involves structural or cosmetic work.

Cosmetic Renovations

Cosmetic renovations with no structural changes to your house are covered, and you don’t need to disclose this.

Examples of cosmetic renovations include re-painting, installing new carpet or replacing a toilet. If you’re unsure if your works are cosmetic, send us an email to [email protected] with full details of the works.

Structural Changes

If your renovation involves any kind of structural alterations to the property, construction-related losses won’t be covered by your standard house insurance policy.  Any work that involves removing cladding or roofing will not be covered by your initio policy and will require a contract works insurance.

A Contract Works policy is required to insure the work and your home for construction related losses. This might include losses following water leaking in through exposed cladding or structural damage caused by the work itself. For our guide on when Contract Works cover is required, see here.

If you need contract works insurance, we’ve partnered with Builtin to offer you a suitable solution. Like initio, BuiltIn are underwritten by IAG so this means that you will have the same ultimate underwriter for the house and contract works risk, which is important.  You should insure the scope of works (and the existing home with built in for construction perils).  The contract works cover and your initio policy work together to cover standard and building risks during the period of construction.

Examples of structural changes include re-roofing, removing a load-bearing wall or an extension onto your home. If you’re doing work but you’re not sure if it’s structural, email [email protected] with full details of the scope.

Related Articles:

• Take the house insurance flip quiz
• When do I need contract works insurance?
• House flip insurance
• What is covered by a house flip insurance policy?

If you own a property with two dwellings and rent them both out long-term (90 days or more per tenant), it’s important to have the right insurance to protect your investment. Whether the dwellings are separate or physically connected will determine the type of insurance you need.

What type of rental arrangement is this?

• Two homes, same site
• Both rented on long-term residential leases

What insurance do you need?

The right insurance depends on whether the dwellings are physically connected or separate:

If the dwellings are NOT physically connected (e.g., separate buildings on the same section):

• You’ll need two landlord insurance policies, one for each self-contained dwelling. Each policy will cover the specific rental risks of that property, including tenant-related damage, liability, and loss of rent.

Start by buying one landlord insurance policy, then add a second through your dashboard (instructions below)

Buy Landlord Insurance

If the dwellings ARE physically connected (e.g., one upstairs and one downstairs, or connected by a wall, roof, or garage):

• You can use our Multi-Unit Rental policy, which provides coverage for both units under a single policy. you’ll need to state the number of self-contained dwellings at the address. This helps ensure you get the right level of cover for your property setup. 

Buy Multi-unit Insurance

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 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!

You can get a quick quote and buy insurance online in just a few minutes with initio. Make sure you choose the right policy based on whether your dwellings are separate or connected. Getting a quote and buying insurance online with us is easy, but our cover is anything but basic. We offer comprehensive protection to ensure you’re fully covered.

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

• Do you have a second dwelling on your property that you rent out?
• Renting out part of your home short-term
• Renting out a second dwelling solely for short-term stays
• Insurance for a non-rented second home on your property
• Second dwelling on your property that your family lives in

Living near the coast has a lot going for it. Sea views, beach access and a relaxed lifestyle are a big drawcard. But coastal properties can also come with additional risks, which means house insurance is often one of the first questions buyers ask.

If you are buying, owning, or thinking about selling a coastal property, it helps to understand how insurers assess risk, and how to navigate coastal risks with confidence.

Key things you’ll learn in this article:

• Whether coastal properties can be insured, and what insurers assess
• How flooding, erosion and subsidence affect insurance decisions
• Why some coastal homes require a customised solution
• What long-term insurability could mean for owners and buyers
• How to check if your property can be insured

Can I insure a coastal property right now?

In many cases, yes. Being close to the coast does not automatically make a property uninsurable.

Initio can insure a wide range of coastal properties, provided the risk profile meets our underwriting criteria at the time cover is considered. When assessing a coastal home, we look at factors such as:

• proximity to the coastline or waterways
• flood history or flood modelling for the area
• exposure to coastal erosion
• land stability, subsidence and coastal erosion risk
• local hazard maps and council information
• previous claims or known damage

You can obtain a quote online using the information available at the time and the details you disclose as part of the application. Depending on those details, the application may be able to be confirmed straight away, or it may be referred to our underwriting team for review before cover is confirmed.

In some situations, we may not be able to offer cover through our online model. This does not necessarily mean the property is uninsurable, but rather that it may require a more customised insurance approach that sits outside what initio is able to provide.

Does initio have concerns about erosion, flooding or subsidence?

These are some of the key risks we assess for coastal properties.

Flooding

Flooding is one of the most common risks for coastal homes, particularly where properties are close to estuaries, rivers, low-lying land, or stormwater outlets. Heavy rainfall, storm surge and rising sea levels can all increase flood risk over time. In some coastal areas, king tides can also contribute to higher water levels, particularly when they coincide with storm events. 

Learn more about flood risks and zones, and natural hazard cover.

Coastal erosion

Coastal erosion can occur gradually over many years, or suddenly during severe weather events. Properties built close to cliffs, dunes, or unstable shorelines can be more exposed to this risk.

Subsidence, land movement and coastal erosion

Coastal land can sometimes be affected by subsidence, erosion, or other forms of land movement, particularly where soils are soft, saturated, or influenced by changing groundwater or coastal conditions.

Subsidence and coastal erosion themselves are not covered under most house insurance policies. However, evidence of either can increase the likelihood of other insured events. For example, land that has experienced erosion or subsidence may be more susceptible to landslip or slope failure during large weather events, which can be covered under a house policy.

For this reason, insurers consider subsidence, land movement and coastal erosion together when assessing the overall risk profile of a property.

These factors do not automatically make a property uninsurable, but they do influence how insurers assess cover, pricing and long-term sustainability.

Why some coastal properties need a customised insurance solution

Initio is an online insurance provider. Our policies, pricing and underwriting are designed to work efficiently for a wide range of homes without the need for one-off or bespoke policy structures.

For most properties, this allows us to offer fast quotes, clear cover and easy ongoing management. However, some coastal properties have risk profiles that sit outside what can be supported through a standard online insurance model.

This can occur where a property has one or more higher or more complex risks, such as:

• significant exposure to coastal erosion
• repeated or severe flooding history
• known land instability or subsidence
• reliance on ongoing protective or mitigation works
• access challenges that affect emergency response or repairs

Where a property has these characteristics, it may require a customised insurance solution tailored specifically to its risks.

Unfortunately, as an online insurance provider, initio is unable to offer customised or bespoke insurance solutions. This does not reflect the quality or care of the property itself, but rather the way certain risks need to be assessed and managed.

Our focus is on being upfront, consistent and clear, so customers can understand their options and navigate coastal risks with clarity. 

See what’s included by reading our policy wordings.

What does this mean for long-term insurability?

Insurance decisions are based on the best information available at the time, including hazard modelling, claims experience and climate data. As this information evolves, insurance settings can evolve too.

For many coastal properties, any changes tend to happen gradually rather than all at once. Over time, this might mean things like:

• premiums adjusting as risk profiles change
• excesses being updated for certain types of events
• small changes to policy terms
• fewer insurers offering cover in higher-risk areas

If a property already needs a more customised insurance approach today, it can be a sign that the risk profile is more complex than average. This does not mean insurance will suddenly become unavailable, but it is something buyers and owners may want to keep in mind as part of longer-term planning.

Learn more about complex insurance quotes

Could this affect resale value?

For some buyers, insurance is becoming another factor they consider alongside location, price and future maintenance.

If a property is more expensive or complex to insure, that may influence how some buyers assess value. That said, many coastal homes remain highly desirable, and insurance is just one piece of the overall picture.

Thinking ahead about insurability, maintenance and risk mitigation can help support both ongoing cover and future resale appeal. If you are purchasing at auction or under conditional agreement, our guide on obtaining a letter of intent explains how to confirm cover during the buying process.

Things to consider when buying or owning coastal property

If you are considering a coastal home, it can help to:

• check council hazard maps and LIM reports
• understand past flooding, erosion or land movement in the area
• ask about previous insurance claims
• consider how close the home is to the shoreline or waterways
• think about any risk mitigation already in place

These steps can help you better understand both current and future insurance implications.

How to check if your property can be insured

The best place to start is with a quote, or by obtaining a letter of intent.

If it is referred for review, our team will assess the details provided and explain the outcome, so you can decide on your next steps with clarity. When requesting a letter of intent, it is important to disclose all relevant information you are aware of as part of your due diligence, such as flood zoning, coastal erosion exposure, land stability concerns or council hazard classifications.

Insurance does not have to be hard, even when you are navigating coastal risks.

You might also be interested in:

• Five tips to insuring in a flood zone
• There’s been a natural disaster, what happens next?
• Am I covered for natural disasters?
• Confirm you can obtain insurance before you make an offer
• How do I make an insurance claim?
• One insurer, one headache

External resources

• Searise maps
• Natural Hazards regional maps
• Auckland Council Flood viewer map

Written by Toby Pudney – initio’s support team lead.

Toby has been with initio since 2023 with 6 years of experience in the insurance industry. Credentials: ANZIIF New Zealand Compliance for Advisers (General Insurance Broking)

Landlord Insurance is designed specifically for rental property owners. It protects not only the house itself, but also the additional risks that come with renting to tenants. Unlike standard house insurance, landlord insurance includes cover for tenant damage, loss of rent and other landlord-specific exposures.

What is landlord insurance?

Landlord insurance is a specialised policy for long-term residential rental properties. It covers the physical building against events like fire, floods, and earthquakes, while also protecting landlords from risks that do not apply to owner-occupied homes.

While standard house insurance focuses on homeowner risks, landlord insurance extends cover to include tenant-related damage, rental income loss, eviction scenarios and other risks unique to renting out your property.

Quick summary

• Landlord insurance covers rental property risks not included in standard house insurance.

• Includes tenant damage, intentional damage and vandalism.

• Covers loss of rent due to damage, eviction or abandonment.

• Includes meth testing and cleaning cover.

• Provides automatic landlord contents cover.

• Designed for long-term residential rental properties in NZ.

What extra cover does Landlord Insurance provide?

Damage by Tenants Loss of Rents Meth Contamination Landlord Contents

Tenant damage cover

Standard house insurance may cover accidental damage caused by tenants, but it does not cover intentional damage.

Landlord insurance protects you against both accidental and intentional tenant damage. This includes vandalism, theft, and deliberate damage such as holes punched in walls or damage from unruly gatherings.

Under our landlord insurance policy :

• Accidental tenant damage is covered up to your full sum insured.

• Intentional damage, vandalism or theft is covered up to $25,000 per event.

• Serious fire or explosion damage is covered above the $25,000 limit and up to your full property sum insured.

Cover applies to damage caused by your tenant, paying guests, or anyone occupying the home, including their guests.

Loss of rent cover

Rental income is essential for most landlords. If your property cannot be rented, you may still have mortgage payments and other costs to meet. Landlord insurance includes loss of rent protection in two main scenarios:

Loss of rent due to property damage

If physical damage makes your rental unlivable, we cover:

• Up to 52 weeks of rent, or

• The loss of rent sum insured you select, whichever comes first.

We automatically include $20,000 of loss of rent cover in all landlord policies, with options to increase this to $40,000 or $80,000.

This applies while repairs are completed following insured damage, such as flood or fire.

Loss of rent due to eviction or abandonment

Loss of rent can also arise when there is no physical damage. If your tenant:

• Is evicted for non-payment after falling 21 days behind, or

• Leaves without giving the required notice, we cover lost rent for up to six weeks.

This also extends to situations where tenants can legally cease rent payments under their tenancy agreement, such as when access to the property is prevented or essential utilities fail.

Meth contamination cover

Meth contamination is a serious risk for landlords in New Zealand. Cleaning a contaminated property can cost tens of thousands of dollars and may render the home unlivable for months.

Standard house insurance does not cover meth contamination. Landlord insurance includes cover for:

• Laboratory testing

• Cleaning costs where a positive meth result is confirmed

Meth cover with initio

We provide up to $30,000 for meth testing and cleaning costs.

Loss of rent cover applies over and above this $30,000 limit. We will pay your weekly rent while the property is being cleaned, for up to 52 weeks or up to your selected loss of rent sum insured.

You might also be interested in:

• Is my rental property covered for meth?
• What to do after a positive meth test
• How do meth claims work?
• Understanding the gluckman report

Landlord contents cover

Many rental properties are furnished or partially furnished. This can include appliances, curtains, rugs, heaters and other non-fixed items. Some landlord policies require contents to be added separately. Our landlord policy automatically includes contents cover.

How much landlord contents cover is included?

We include $20,000 of landlord contents cover as standard. This is the minimum level and cannot be reduced.

If your property is more fully furnished, you can increase this to $40,000 or $60,000.

What is covered?

Cover applies to fixtures and fittings and landlord-owned contents included in the tenancy.

• Items five years old or less are replaced with new items.

• Items over five years old are paid at present value.

This does not cover your personal belongings.

Frequently asked questions about landlord insurance

Can I reduce the $20,000 landlord contents limit?

No. The $20,000 landlord contents cover is automatically included as the minimum under our landlord policy. This amount cannot be reduced. You are covered for landlord contents up to that figure as standard, with options to increase the limit for more fully furnished properties.

Is furnished property covered under landlord insurance?

Yes. Whether your rental property is furnished or unfurnished, it is covered.

Landlord insurance automatically includes cover for landlord contents such as non-fixed appliances, curtains, rugs and heaters. If the property is fully furnished, you can increase the contents limit to ensure everything is adequately protected

Does landlord insurance cover intentional tenant damage?

Yes. Our landlord insurance policy covers intentional damage caused by tenants.

Intentional damage, vandalism or theft by tenants is covered up to $25,000 per event. In cases of serious fire or explosion damage, cover can extend beyond this limit and up to your full property sum insured.

More information about landlord insurance

Explore these additional articles that may interest you:

• Five fundamentals of landlord insurance
• What is landlord insurance?
• Are you thinking of renting our your home and becoming a landlord?
• What does landlord insurance cover?

Insurance made simple when you change homes

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

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

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

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

What about contents during the move?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Related articles

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

Calculate your contents

There’s a lot to juggle when you’re buying your first place – deposits, lawyers, moving trucks, the lot. Sorting out home insurance when buying your first house is another step, but it doesn’t have to be confusing.

That’s why we created the First Home Buyer Insurance Guide. It explains what house and contents insurance is all about, answers the questions first-home buyers ask most, and helps you avoid common mistakes.

You’ve got enough to think about. We’ll make insurance the easy part.

When do you need insurance?

One of the biggest surprises for first-home buyers is when insurance is actually required. Most banks won’t release your loan until they’ve seen confirmation of cover. You can’t leave it until after settlement.

Here’s how timing works:

• Auction: Check in advance that the property is insurable before bidding.
• Conditional offer: Your finance clause usually requires proof (Letter of Intent or Certificate of Insurance).
• Settlement day: Even with an unconditional offer, you’ll want cover active from the moment you take ownership. Learn more about when your cover needs to begin.

Sorting your insurance early gives you peace of mind and avoids last-minute stress.

Proof of cover: two simple options

Letter of Intent

Best when you’re still finalising the purchase or need something fast. Get a quote online, customise your cover, and download the Letter of Intent instantly to show your lender the property can be insured.

Certificate of Insurance

Once you’ve bought the home, complete your sign-up, pay your premium, and receive the Certificate of Insurance by email. This confirms your cover is active from settlement day. All you need is your new address – no phone calls, no delays.

What to look for in your policy

Insurance isn’t one-size-fits-all. Before you buy, think about:

• Sum insured: The rebuild cost of your home (not the market value). Include demolition, site clearance, and GST. Use our calculator to help you estimate the rebuild cost.
• Excess: What you’ll pay if you make a claim. Higher excess lowers premiums but increases out-of-pocket costs.
• What’s covered: Fire, flood, storm, burglary, accidental damage, and natural disasters.
• What’s not: Wear and tear, gradual damage, or maintenance issues.

And don’t forget contents cover – your furniture, electronics, and valuables add up quickly.

Mistakes first-home buyers often make

It’s easy to treat insurance like a box to tick, but the wrong choice can leave you out of pocket. Common mistakes include:

• Underinsuring: Cutting corners on your sum insured lowers premiums but leaves you short if disaster strikes.
• Guessing rebuild costs: Use a calculator or valuation instead of rough estimates. Learn more about calculating rebuild costs.
• Chasing the cheapest price: Low-cost policies often have gaps in cover or poor claims support. Use our online comparison tool to compare cover options between leading NZ insurance providers.
• Picking the wrong excess: Balance affordability with what you could realistically pay. Learn more about insurance excess
• Forgetting contents and car cover: Protecting your house is step one, but your belongings and car matter too. Access our contents calculator tool to work out the value of your belongings.

Why initio works for first-home buyers

You don’t just need cheap insurance – you need cover that works when it matters. That’s where initio comes in:

• Instant quotes and proof of cover online
• Thousands of verified 5-star reviews
• Transparent, fast claims process you can manage online
• Backed by IAG, New Zealand’s largest general insurer
• Policies designed for Kiwi homeowners and landlords

We built initio to take the hassle out of insurance. No hold music. No confusing forms. Smart cover made simple.

Ready to get started?

Read the full First Home Buyer Insurance Guide for step-by-step instructions, examples, and practical tips to help you get it right from the start.

Make insurance one less thing to stress about – so you can focus on enjoying your new home.

Ready to begin your journey with initio? Start with a quote

Related articles

• • Moving house? Things you need to know about your insurance.
  • Five fundamentals of house insurance
  • Help when your quote isn’t straightforward
  • How to switch from your current insurance provider to initio

Want to dive deeper?

Watch our video where Guy, our Head of Partnerships, explains what insurance actually does, why banks care about confirmation of cover, and how to avoid common traps as a first-home buyer.

Insurance is about gathering money from premiums to help people who have losses covered by their policy. When fraud happens, there’s less money to go around. This makes premiums more expensive for everyone.

Insurance fraud may appear to be a shortcut for quick financial gain, but the repercussions can be severe and long-lasting. While the motivations behind insurance fraud vary, its impact is universally detrimental, not only for insurance providers but also for policyholders. 

What is insurance fraud?

Insurance fraud involves any form of deception directed at an insurance provider. It varies in scale and can range from seemingly minor infractions to substantial, orchestrated schemes. Common types of insurance fraud include:

• Making false statements to support a claim.
• Falsely adding items that weren’t affected to your claim.
• Creating a fake situation or staging a claimable event.
• Claiming the same item multiple times.
• Withholding vital information, such as past criminal convictions or declined claims.
• Making a claim for an incident that occurred before your policy was in place.

Knock-on effects of insurance fraud

One of the immediate consequences of committing insurance fraud is the decline of your claim and the cancellation of your policy. Here are some of the further implications:

• Difficulty obtaining future insurance: If you are caught committing insurance fraud, you may find it challenging to secure insurance in the future. This can create a ripple effect of complications.
• Home ownership barriers: If you can’t obtain insurance, buying a house becomes difficult, if not impossible, because most mortgage providers require home insurance as a condition of the loan.
• Altering excess and making immediate claims: There have been occassions where we’ve noticed a pattern of individuals changing their policy excess amount and then making a claim the very next day. This is a red flag for insurance providers and could result in the claim being declined.
• The insurance claims register: If you’re found committing insurance fraud, your details may be flagged in an industry-wide Insurance Claims Register, making it challenging to secure any type of insurance going forward.
• Legal consequences: Beyond these financial and practical outcomes, insurance fraud is illegal and can lead to prosecution. In severe cases, you could receive a criminal conviction.

The importance of the date of loss

Choosing an incorrect date for when a loss occurred can also be considered a form of fraud. The date of loss is crucial for determining the policy terms that apply and for establishing whether the claim is valid. Misrepresenting this date could result in a denied claim or worse.

Consequences summarised

Being dishonest or omitting details when dealing with your insurance provider may seem like a small act at the time, but it has significant ramifications:

• Claim decline and policy cancellation.
• Future insurance barriers.
• Potential legal issues.
• Financial strain due to an inability to secure loans or buy a house.

Final thoughts: be honest

Insurance is a cornerstone of financial planning, offering a safety net for unforeseen circumstances. Fraud undermines this system for everyone involved. By understanding the gravity of insurance fraud and its consequences, you can make informed and honest decisions when dealing with your insurance provider.

USEFUL LINKS:

• Non-Disclosure and what to tell your insurance provider
• How are house insurance premiums are calculated?
• Technology you can trust
• Calculate your sum insured

Landlord insurance is a tailored policy for a property used as a rental.  It is different to normal house insurance.  Landlord insurance covers both the rental (your house itself) and the additional risk added by having a tenant in the property.

All homeowners are exposed to common risks such as fire damage, flood, and earthquake, but as a landlord you face an additional occupancy risk due to a tenant living in the property.  Unlike family, tenants are not generally known to you.  

How is landlord insurance different from house insurance?

In short, landlord insurance is the same as insurance for your own home, but for two big differences:

• Disclosure – use of the property: 
  Landlord insurance specifically accounts for the fact that your family does not live in the property.  This is very important.  If your rental property burns down and your insurer is not aware that it is a tenanted property the insurer could be entitled to deny your claim. 
• Additional landlord risks:
  Unlike your own home insurance, most landlord insurance includes coverage to specifically address the additional landlord risks:  

What are my additional risks as a landlord?

Accidental damage by tenants

This is where your tenant un-intentionally causes damage to the property.  For example:  they spill a glass of red wine on the carpet.  In this situation you need a landlord insurance policy in order to have a successful claim.   It is unlikely that you can recover the cost of your insurance excess from the tenant.  

Deliberate damage by tenants

Deliberate damage, also known as malicious or intention damage is usually the case when, as a landlord, you discover holes in walls and damage that is unlikely to have been the result of an accident.  Cover for this is provided by a landlord insurance policy, usually up to a limit of around $25,000.  The cover protects you from the cost of a tenant deciding to make a mess of your property.  

Loss of rents following damage

If your rental property suffers a loss that deems the house uninhabitable then you face having an un-tenanted property while the repairs are completed and the property is occupied again.   This will mean a loss of rental income.  Landlord insurance provides cover for this loss of income up to a selected value (eg $40,000) for a payout period of usually 12 months.   For major losses the cover will stop as soon as the loss of rent amount is used or the payment period ends, whichever comes sooner.  

Loss of rents resulting from eviction or abandonment

This is where your tenant is evicted from the property (by decision of the Tenancy Tribunal) or your tenant leaves without giving notice.  In both situations it means that you will be out of pocket due to loss of rental income.  Some landlord insurance policies will reimburse you for this loss of income but only up to 6 or 8 weeks, following the formal eviction or discovery of the abandonment.  

Landlord contents damage or theft

Even an unfurnished rental property had landlord contents.  The oven and curtains are contents, not house.  The tenant risk means that you could suffer a loss to these items, and this risk increases when you partially or fully furnish a property.  A landlord insurance policy protects by providing cover, usually up to a standard limit of $20,000.   Some landlord insurers provide an option to purchase more contents cover for an additional cost, which is important for furnished properties.  

Landlord liability

As a landlord you accepting money (rent) for providing a house (accomodation).  This makes means that you are in the business and with this comes additional regulatory obligations that, if breached, can cost you.  Tenants can also have a go at you if they suffer a loss because of something you did (or didn’t do).  The best example here is if a landlord did not change the locks after a previous tenant abandoned it and the new tenant was robbed (with no sign of forced entry).   Some landlord insurance policies include cover for landlord liability, meaning that if you are pursued by a tenant or a regulatory authority the insurer use their lawyers to defend you, and if you are held liable pay certain awards against you.  

Meth contamination

Meth and other illegal substances can cause significant damage to a property, especially when the substance is being manufactured.   Meth clean-up costs can easily exceed $10,000.  Reducing the risk of contamination occurring is best managed through good tenant vetting procedures and meth testing in between tenancies.  If you do suffer a contamination loss and have a robust landlord insurance policy you will have cover for up to $30,000, plus the loss of rental income incurred.  

Can I hold the tenant responsible for damage?

Yes and no.  It really depends whether the damage was accidental, intentional, or just careless.  Having a good landlord insurance policy would mean you are covered for all the causes of damage by the tenant – and then your insurers will decide whether to go after the tenant for the repair costs.  

The good news is that the Residential Tenancies Act now provides scope for landlords (and their insurers) to recover the cost of repairs or their insurance excess from the tenant.   Learn more holding tenants responsible.  It is important to note that, more often than not, tenant damage claims result in the landlord’s insurer applying more than one excess.  This is because insurance works on incidents, and each incident is a separate claim that attracts its own excess.  Learn more about how insurers look at events

Ready to get started with initio?

It just takes a few minutes.

Buy Landlord Insurance

Want more information?

Explore these additional articles that may interest you:

• Five fundamentals of landlord insurance
• Guide to landlord insurance
• Are you thinking of renting our your home and becoming a landlord?

House contents insurance is designed to protect the things inside your home – the personal belongings that make it yours.

Initio’s house insurance includes the option to cover your contents, so your personal belongings are protected for repair or replacement if something happens, typically on a new-for-old basis. This includes most household items, with some exceptions that are covered for their current market value, such as clothing, books, and certain electronics. The policy also provides cover for contents in transit or temporarily in storage, and offers personal liability protection up to $1 million for accidental damage you may cause to others’ property in New Zealand.

Read the full policy wordings

Know your contents cover limits

When you take out contents insurance with initio, you’ll set a total sum insured, the maximum amount we’ll pay if all your contents are lost or damaged. This is usually based on the cost to replace everything you own in a total loss. However, some items have specific payout limits, even if your overall sum insured is higher. These limits apply to things like jewellery, bikes, artworks, and certain electronics, and are designed to reflect their typical value and risk. To understand exactly what’s covered and any limits that apply, it’s important to review your policy wording. That way, you can decide if you need to specify high-value items separately to ensure they’re fully protected.

For a full list of items and their limits, you can visit our guide on what contents need to be specified. Alternatively, learn which items are automatically covered with your house & contents insurance. 

If you’re still unsure, you can reach out to us directly – or even use an AI chat tool to quickly search your policy for specific details – just remember to always double-check the results.

Ready to begin your journey with initio?  Start with a quote

Can I get contents insurance by itself?

It’s worth noting that initio does not currently offer stand-alone contents insurance. To get contents cover, it must be added to an active house insurance policy for the same property. If you only need to insure your contents, such as when you’re renting or not insuring the home itself, initio is not able to provide contents cover.

Related articles

• What does landlord contents insurance cover?
• Moving house? Make sure you stay covered
• Which items are automatically covered with house contents insurance?
• How do I add contents insurance to my policy?

Owning multiple properties can sometimes make insurance decisions tricky, especially for New Zealand homeowners who use their homes differently throughout the week. For example, you might have one home you stay in during the weekdays and another you visit mostly on weekends.

Understanding the right insurance policy for each property is crucial to ensure you’re fully covered.

The main difference between holiday home insurance and own home insurance lies in the occupancy and associated risks. Own Home insurance is for your primary residence where you would reside the majority of the home, not generally suitable if you leave it vacant for periods of 60 consecutive days or more.  Holiday homes are not primary residences and are often empty for reasonable periods, increasing risks such as break-ins. Therefore, holiday home insurance has specific conditions and coverage tailored to these unique risks. If you aren’t using your holiday home all year round, you might rent it out between stays.

The following is a list of cover specific to each type of policy to help you determine which is the best policy for your property:

Holiday home insurance specific cover:

• Optional – Guests: Cover for damage, theft, and loss of rent if you host guests.
• Fixed contents: $20,000 standard cover for fixed contents at the home, with options to increase. This covers furniture that stays in your home permanently (not personal belongings).  Cover is limited to the property address.
• Blocked pipes: Up to $1,000 to unblock an underground pipe, with no excess.
• Keys and locks: Up to $1,000 for replacing keys and associated locks, with no excess.
• Legal liability: $2 million legal liability costs if an accident damages other property or people.
• Optional – Loss of rent: Up to 12 months or $20,000 following damage to your house.

Own home insurance specific cover:

• Personal contents (available as an add-on to any Own Home policy): Replace or repair lost or damaged belongings, majority of items are insured on a new-for-old basis.  Includes cover for contents including personal effects whilst at the property and temporarily removed anywhere in New Zealand.
• Temporary accommodation: $20,000 of alternative accommodation if your damaged house can’t be lived in.
• Reduced glass breakage excess: Reduced $250 excess for glass breakage claims.

What if you split your time equally between two homes?

If you divide your time equally between two homes, each property may require different insurance considerations. The home you use during the weekdays might need a standard home insurance policy, while the one you visit on weekends could be classified as a holiday home, or potentially you may need two Own Home (owner occupied) policies. It’s crucial to assess the specific usage patterns of each property to ensure you have the appropriate coverage. This should also take what belongings you use the majority of the time at each property into consideration.

Holiday home or rental?

Provided you use the home as your holiday home we can also offer the option of including short-term rental cover for you.  If this describes your situation, select ‘Holiday Home – sometimes rented’ from the dropdown menu, and initio’s clever software will do the rest. If you’re not sure which cover is best for you – we’re here to help.

What special terms apply (regarding vacancy) on each policy?

Holiday Homes:

If no one has been living or holidaying at the home for a period of more than 60 consecutive days, and the home is recorded as a holiday home, expectations are that the following criteria can be met: 

• the home is inspected inside and outside by you or a nominated person at least every 60 days, and 
• the home and its grounds are adequately maintained, mail is cleared regularly and
• the water supply is turned off and
• all doors are locked and windows secured

If you are unable to meet those conditions, cover will continue with a higher standard excess of $5,000 applying to any claim.  If however, a loss results from a break-in or attempted break-in at the home while it is fitted with an active, professionally-installed alarm or security system, then an excess of $1,000 applies. 

Own Homes (primary residence):

If no one has been living at the home for a period of more than 60 consecutive days, we will only pay for loss that is: 

1. caused by fire, explosion or lightning, or 
2. covered under the ‘Natural disaster’ automatic additional benefit. 

These terms can be reviewed upon request for special circumstances.

What if I only use the house for guests?

Under our cover, you need to use the house at least occasionally yourself over the course of a typical year. If you;

• don’t use the house yourself as your holiday home and as such also 
• don’t keep personal items at the home, and
• it is only rented to short-term guests,

it is considered a commercial operation, similar to a motel. Our cover is domestic-based house insurance, and cannot be used if the above requirements are not met.

Are my personal contents covered under a holiday home policy? 

Your personal contents items, like phones, jewellery, and laptops, won’t be covered under your holiday home cover as they should be protected by your contents cover at your main home. Belongings that remain at your holiday home, like furniture, TVs, and glassware, are covered. You can only insure your personal contents with initio as an add-on to an owner-occupied home you also insure with us.  

What else can you do to ensure you choose the best insurance provider for your needs?

When researching and comparing insurance providers, it’s essential to evaluate them based on their reputation, customer satisfaction, and claims processing efficiency. Reading customer reviews and testimonials can provide valuable insights into real-world experiences with different insurers. Additionally, carefully reviewing policy details, such as coverage limits, exclusions, excess amounts, and additional features, is crucial. Don’t hesitate to ask questions or seek clarification on any confusing terms or conditions.  

Key takeaways

1. Tailored insurance coverage: Ensure each property has the appropriate insurance policy based on its usage, whether it’s a primary residence or a holiday home.
2. Personal belongings: Secure and appropriately insure personal belongings at both properties, ensuring valuables are covered and managed efficiently.
3. Maintenance and security: Maintain regular upkeep and robust security measures for both homes to prevent risks associated with extended vacancies.
4. Be aware of policy restrictions/conditions relating to how long a home is vacant for.
5. Thoroughly research and compare to make an informed decision.

USEFUL LINKS

• Holiday home insurance basics
• Holiday home insurance options
• Can I insure my house that’s rented out to guests?

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

Want to add another property? Click “Add insurance”

Need to make a change to your policy?

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

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

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

Adding or changing your policy

• Adding additional property
• Make changes to 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

Useful articles

• Five fundamentals of house insurance
• Getting started with initio
• Why do you need house insurance
• Technology you can trust
• Can I pre-purchase a new policy?

You know some items need to be specified, but what about everything else that might already be covered?

We’ve put together a list of common “am I covered?” questions our customers often ask. It’s not a full list, so it’s always best to check your policy wording for the full details. If you’re still unsure, you can reach out to us directly – or even use an AI chat tool to quickly search your policy for specific items – just remember to always double-check the results.

Please note: the items below relate specifically to our house & contents insurance policy.

Are my solar panels and EV charger covered?

Yes — if they’re permanently installed at your home, your solar panels and EV charger are covered under your initio house insurance as part of the building. They’re insured for sudden and accidental loss or damage, subject to your policy’s standard terms and conditions.

If you have a portable EV charger that isn’t permanently wired in, it may be covered under your contents insurance instead, as long as it’s for personal use. Equipment used for business or income-earning purposes isn’t covered under standard house or contents policies and may require commercial insurance.

Do you cover outdoor sports equipment (like snowboards, skis, or surfboards)?

Yes — outdoor sports equipment such as snowboards, skis, and surfboards is covered under your initio contents insurance for sudden and accidental loss or damage, but payment limits apply. The policy has a maximum of $2,000 for any surfboard, windsurfer, paddleboard, kite surfer, surf ski, dinghy, kayak, or canoe (including their parts and accessories), unless the item is listed as a specified item on your policy.

If you have high-value gear, it’s a good idea to specify it on your policy to make sure you’re covered for its full replacement value.

If you own equipment worth more than the standard policy limit, it’s a good idea to specify it on your policy. This ensures the present value of that item is fully covered, rather than being capped at the policy limit.

Are my lawnmower and gardening equipment covered?

Yes, if you have initio contents insurance, your lawnmower, robotic mower and other domestic gardening equipment are covered as part of your “contents,” as long as they’re for personal use only. The policy specifically includes domestic garden appliances (such as lawnmowers, hedge trimmers, and similar tools) and their parts or accessories. They’re covered for sudden and accidental loss or damage, subject to your policy’s standard terms and conditions.

If your gardening equipment is used for business purposes — for example, if you run a lawnmowing service — it won’t be covered under your standard home contents policy. In that case, you’ll need commercial insurance to make sure you’re protected.

Is my home office equipment covered?

If you use a room in your home (or an outbuilding) solely as a home office for clerical work, our home policy covers that space, and your contents cover will extend to office furniture and equipment used for earning income—up to $10,000 at home and $1,500 while temporarily elsewhere in NZ. Learn more about when you need commercial insurance.

What about my spa pool or outdoor furniture?

Yes — if they’re portable and for personal use, your spa pool and outdoor furniture are covered under your initio contents insurance for sudden and accidental loss or damage, subject to the policy’s standard terms and conditions. Portable spa pools are included in the definition of “contents,” but fixed or built-in spa pools are considered part of the home and covered under your house insurance instead.

Outdoor furniture is also treated as contents, so it’s covered while at your home. However, like all contents, it won’t be covered if it’s used for business or income-earning purposes.

Is my medical equipment (including hearing aids) covered?

Personal medical equipment like hearing aids, mobility aids, and insulin pumps are automatically covered under our Own Home Contents policy. Learn more

If you’re ever unsure about whether something is covered under your policy, the safest option is to check your policy wording or get in touch with us. Our team can walk you through the details, explain any limits that might apply, and help make sure you have the right cover in place for your needs.

If you’re ready to start your journey with initio, you can get a quote online in just a few minutes — see your price, choose your cover, and get protected straight away. And if you ever need to make a claim, our simple online process through your customer dashboard means you can get it lodged quickly, without the usual paperwork headaches.

Ready to protect your house and contents? Get a quote in seconds and cover in minutes

Related support articles:

• What content items do I need to specify?
• Are my hearing aids covered?
• Understand the differences between content cover options
• What’s covered under my house contents insurance?
• When do you need commercial insurance?
• Things we don’t cover at initio

Liability cover in house and contents insurance protects you if you are legally responsible for accidentally injuring someone or damaging their property. In New Zealand, house insurance is not just about covering fire, natural disasters, or theft. The liability section can help pay legal costs and compensation if a claim is made against you. Understanding how liability cover works, what it includes, and when it applies can help you avoid significant out-of-pocket expenses.

Key takeaways in this article:

• Liability cover in house and contents insurance protects you if you are legally responsible for accidental injury or property damage.

• It can cover compensation payments and legal defence costs if a claim is made against you.

• Cover can apply at your home and, in some situations, anywhere in New Zealand.

• ACC covers medical treatment for injuries, but liability insurance may respond to other related claims.

• Liability cover is automatically included in initio house and contents insurance policies.

What is liability cover in home insurance?

Liability insurance covers legal costs and compensation if you are legally liable for unintentional damage to another person’s property or for injuries they sustain due to your actions or negligence. It typically includes:

• Personal liability: If someone is injured at your home and you are responsible.
• Property damage liability: If you accidentally damage someone else’s property.
• Legal defence costs: If a claim is made against you, your policy may also cover legal expenses.

When might you need liability cover? Here are some common scenarios:

1. A visitor is injured on your property

If a guest trips over a loose step, slips on a wet floor, or is injured by a falling object in your home, they may seek compensation from you.  The New Zealand ACC scheme typically covers injury-related costs, but it has gaps, such as claims for pain and suffering, property damage (e.g., clothing or personal items), and mental injury. In these cases, your home insurance liability cover may help with costs and legal fees if legal action is taken.

2. Your tree falls on a neighbour’s property

New Zealand’s strong winds and storms can cause trees to fall. If a tree from your property damages your neighbour’s home, car, or fence, you could be held responsible if you failed to take reasonable care. 

3. Your kids or pets cause damage

If your child accidentally kicks a ball through a neighbour’s window or your dog escapes and damages someone else’s garden, liability cover can help pay for repairs or compensation.  

4. You run into a vehicle while riding your bicycle

If you cause damage to other vehicles or property whilst navigating the streets on your bike, liability cover will cover those costs.  

5. Water damage to a neighbour’s property

If a plumbing issue in your home causes water to leak into the adjoining unit or property, damaging walls, floors, or belongings, you may be liable for the cost of repairs.

6. You accidentally cause a fire that spreads

Fires can quickly get out of control, whether from a kitchen accident, an unattended candle, or a backyard BBQ. If a fire originating from your home spreads to neighbouring properties – damaging fences, homes, or belongings – you could be held responsible. If a neighbour makes a claim against you for repair costs or compensation, your liability cover may help cover the expenses, especially if negligence is a factor.

7. You accidentally cause damage while staying elsewhere

You’re visiting a friend’s house, and you accidentally knock over an expensive vase or damage a piece of furniture. Or, while browsing in a shop, you accidentally break a fragile item. You might be charged for the damage, but your liability cover may help cover the cost.

What’s typically not covered under the Home/Contents liability section?

While liability insurance provides broad protection, there are exclusions, such as:

• Intentional damage: If you deliberately cause damage, you won’t be covered.
• Business-related liability: If the incident occurs as part of a business activity, you would need separate business liability insurance.
• Liability due to unlawful activities: Any damage or injury resulting from illegal activities is not covered.
• Liability due to operating a motor vehicle (is covered under the vehicle’s insurance)

Conclusion

The liability section of a home insurance policy in New Zealand is crucial for protecting you from unexpected legal and financial consequences. Whether it’s accidental property damage, injury that falls outside ACC cover, or an unforeseen incident, this cover ensures you won’t face costly legal battles or compensation claims out of pocket.

All initio products automatically include liability protection.

You might also be interested in:

• How do I buy my first policy with initio?
• What is initio and how does it work?
• Why do I need house insurance?

House insurance protects you financially when the unexpected happens to your home, like a fire, flood, or sudden water damage. Without it, you’d need to pay the full cost of repairs or rebuilding yourself, which can be extremely expensive.

Most New Zealand homes are worth hundreds of thousands of dollars. Rebuilding or repairing after a disaster is not something most homeowners can afford out of pocket, and these expenses often come without warning.

That’s why it’s important to set the right sum insured – the maximum amount your insurance will pay to rebuild your home. You can learn more about how to work this out in our guide to calculating your sum insured.

Tempted to skip it to save money?

In tough financial times, it can be tempting to look for areas to cut back, and insurance can feel like an easy one to drop, especially if you haven’t made a claim in years. But it’s worth asking yourself:

If disaster struck tomorrow, could you afford to recover without insurance?

A single fire or flood can destroy years of financial progress. Even minor repairs can cost tens of thousands, and that’s before factoring in things like temporary accommodation. When you don’t have cover, you’re gambling with your biggest asset.

When you pay for insurance, you’re not just buying cover, you’re paying a provider to take on the financial risk for you, so you’re not left to carry it alone if something goes wrong.

Insurance isn’t about being pessimistic; it’s about being prepared.

You can reduce your premium without losing cover

If you’re looking for ways to keep your costs down, one of the most effective options is to increase your excess. This is the amount you agree to pay if you make a claim.

By choosing a higher excess, you’re taking on a bit more risk upfront, but it usually means you’ll pay a lower premium year to year. It’s a good option for homeowners who:

• Want to keep their cover but lower their premium
  
• Haven’t made a claim in a while
  
• Could comfortably pay a higher excess in the rare event they do need to claim

At initio, our quick quoting tool makes it easy to adjust your excess when you get a quote, so you stay protected, without paying more than you need to.

Insurance is about protecting what matters most

Your home is likely your most valuable asset. House insurance is designed to shield it from things you can’t plan for: fires, floods, storms, and earthquakes.

With initio, you’re covered for sudden and accidental damage, and you can lodge a claim online in minutes. It’s fast, flexible protection, backed by real people.

The bottom line: why you need house insurance

• Because disasters can happen to anyone at any time
  
• Because the cost to rebuild or repair is high
  
• Because insurance offers security when you need it most
  
• Because there are smart ways to stay covered without overspending

Still thinking it through? Get a quote online in minutes, or learn more about what our house insurance covers

Get a quote

Related articles:

• Fundamentals of house insurance
• Top five mistakes to avoid when insuring property
• How do I get started with initio?
• Insurance for when you are buying your first house
• What is liability cover in a house insurance policy?

Whether you’re considering becoming a landlord for the first time or looking to optimise your rental process, this guide covers some of the key aspects you need to know.

Key takeaways in this article:

• Being a landlord comes with legal responsibilities.

• Make sure your property meets Healthy Homes Standards.

• Decide early between long-term or short-term renting.

• Set rent based on local market research.

• Screen tenants carefully and keep good records.

• Standard home insurance does not cover rental risks.

• Regular inspections and maintenance help avoid bigger costs.

• Rental income is taxable, so check your obligations.

Renting out your home in New Zealand can be a great way to generate extra income, but it comes with responsibilities and risks. 

Before you rent out your home

Get the right advice early

• Refer to Tenancy Services for the latest landlord specific advice such as healthy homes and legal requirements
• You may also want to join your local property investor association for support and advice – New Zealand Property Investors Association have various branches throughout New Zealand.
• Consider whether a professional property manager is right for you.  
• Services like myRent can help with advertising, tenant management, and documentation.

Understand Healthy Homes requirements

Landlords must ensure their rental meets Healthy Homes Standards. This includes heating, insulation, ventilation, moisture control, and draught stopping.

Know your legal obligations

Under the Residential Tenancies Act, landlords must:

• Keep the property in a reasonable state of repair

• Lodge the bond with Tenancy Services

• Provide proper notice for rent increases

• Keep accurate records of agreements, inspections, and payments

Choosing the right strategy

Long-term rentals

Long-term rentals provide steady income and greater stability. They generally involve less turnover but require ongoing property management.

Short-term and holiday rentals

Short-term rentals, such as Airbnb, can earn more during peak seasons. However, they require more active management, cleaning, and compliance with council rules.

They also require commercial insurance, which can cost more than standard landlord cover.

Insurance differences to consider

Landlord insurance is designed to protect against tenant damage, loss of rent, and liability claims. Always check policy conditions, including inspection and tenant screening requirements.

Setting up your rental property

Set the right rent price

Research similar properties in your area to set a competitive rental price. Consider:

• Location and amenities
• Property size and condition
• Market demand
• Seasonal fluctuations

Websites like Trade Me Property and Tenancy Services can help you gauge market rents in your area.

Advertising your property

Advertise on platforms such as Trade Me Property, Facebook Marketplace, or use a property manager to find suitable tenants.

Screening tenants

Carry out proper checks before accepting a tenant. This may include:

• Credit checks

• Previous landlord references

• Employment verification

Use Tenancy Services templates or services like myRent to ensure all legal terms are covered.

Protecting your investment

Why landlord insurance matters

Landlord insurance protects you from risks specific to renting, including malicious damage, loss of rent, and liability.

What standard home insurance does not cover

Home insurance is designed for owner-occupied properties, where the owner lives in the home. It is priced and structured around that lower risk profile. Once a property is rented out, the risk changes. There is less control over how the home is used, and there are additional exposures such as tenant damage, loss of rent, and liability issues.

Because of this, standard home insurance will not cover many rental-related risks. If your property is tenanted, you should have a landlord policy that is specifically designed for rental situations.

Your obligations under a landlord policy

Most landlord policies require reasonable tenant screening and regular inspections. Failing to meet these obligations can affect a claim.

Managing your property day to day

Routine inspections

Regular inspections help you identify issues early. Tenancy Services provides inspection checklists to guide you. myRent also have great resources in that regard.

Maintenance and repairs

Respond promptly to maintenance requests and budget for ongoing upkeep to avoid larger repair costs later.

Tracking rent payments

Use a clear system to track rent payments and maintain accurate financial records. Property management tools like myRent can assist with this.

Ending a tenancy correctly

Tenancy agreements

Ensure tenants sign a legally binding Residential Tenancy Agreement outlining rent, bond, and house rules.

Notice periods and bond refunds

When ending a tenancy, follow the correct notice periods and manage bond refunds according to legal requirements.

Understanding tax responsibilities

Rental income is taxable in New Zealand. You may also be able to claim expenses such as:

• Property management fees
• Mortgage interest (if applicable)
• Repairs and maintenance
• Insurance and rates

Check with an accountant or Inland Revenue (IRD) for guidance on tax obligations.

Final thoughts

Renting out your home can be financially rewarding, but success depends on understanding your legal duties, choosing the right rental strategy, and arranging proper landlord insurance. Taking time to plan now can help you avoid costly mistakes later.

If you’re considering renting your property, take the time to research and seek professional advice where needed to avoid common pitfalls.

You might also be interested in:

• What does landlord insurance cover?
• Landlord insurance fundamentals
• Guide to landlord insurance
• What is landlord insurance?
• Landlord insurance for multiple rentals
• Can I complete remote property inspections?