What you need to know about insuring your investment property.

Recently we were approached by the Auckland Property Investors Association to do a brief Q&A on landlords insurance, and some of the risks that landlords face in the modern market.

You can find some of the common questions and answers here. For more specific questions, you can always head over to our FAQ.

Q: Why do property owners take Landlord’s Insurance?

A: We have found that landlords tend to be quite sensible with their insurance decisions. The main driver for getting insurance is basic protection against the big loss risks such as fire, flooding, earthquake, and other natural disasters.

Sometimes current events will motivate landlords to seek cover for specific risks such as meth, or damage by tenants, but the “average landlord” still looks mainly to get cover for those big loss risks.

Q: What is the biggest risk for landlords and property owners?

A: The single most common cause for claims is leaking water pipes, especially in older homes where maintenance has not been carried out or has fallen behind.

Regarding what is costliest, no surprise that fires caused by wiring/electronics is the most damaging source. One of the most common sources is overloaded multi-plugs and wall sockets, especially where the multi-plugs are older/low quality.

Q: Insurance is one of those peace-of-mind expenses that people want to have but don’t want to claim on. What advice is there for investors to manage their insurance costs?

Depending on the provider and type of claims, it is true that too many claims will push up the premium. At the end of the day, insurance is there to be claimed on.

The best approach is to ask your insurer if they have any form of no-claims bonus or increase if a claim is made. While claiming with Initio will not penalise you in terms of premiums, other insurers may have a different approach. If the claim amount is just over the excess, it is worth considering not lodging.

The best advice to manage your costs is to select as high an excess as you can comfortably afford. This means you are protected against the major events, but due to fewer claims, you will end up spending less overall on your insurance bill.

Q: Are NZ landords adequately insured?

Unfortunately, not always. The Initio philosophy is to provide cover that ticks all the boxes right from the get-go. But insurance is a competitive market and some policies, while cheaper, do not include basic covers such as gradual damage, or even deliberate damage caused by tenants. If you are entirely focused on being a price-chaser than you could become underinsured.

If you have any questions or comments regarding the article, you can contact us to find out more.

We’re proud to share that initio has been recognised as a 5-Star Insurance Innovator in the 2025 Insurance Business New Zealand (IBNZ) awards. This award celebrates the companies that push the industry forward with real innovation, delivering meaningful results for customers.

Why this award matters

For us, innovation isn’t about shiny technology for the sake of it. It’s about using smart digital tools to make insurance simpler, faster, and smarter for homeowners and landlords across New Zealand. That’s why being recognised by IBNZ is special. Their judging looked not just at new ideas but also at proven results – how those ideas genuinely improve outcomes.

In 2024, we rolled out major improvements to our platform:

• Smarter online quoting that allows customers to compare cover and buy a policy in minutes
• A more intuitive dashboard where policyholders can manage their insurance 24/7
• Faster claims processing supported by real-time updates and better data sharing
• Behind-the-scenes risk technology that reduces friction for customers while keeping cover accurate and fair

Each of these developments was designed with one question in mind: how does this make life easier for our customers?

Smart insurance for smart people

Our customers are busy people who want insurance to just work – without the jargon, paperwork, or hold music. That’s why we’ve built a platform that puts control in their hands. The award validates that our approach, removing complexity and giving transparency, is working.

For example, being able to update your policy online, lodge a claim, or instantly access documents via your client dashboard isn’t just a “tech feature.” It means less stress when something goes wrong, quicker answers, and confidence that you’re in control.

What it means for our customers

Recognition from IBNZ is encouragement to keep going. But the real win is for our customers. Because every innovation we introduce is about:

• Saving time – no waiting on hold or posting forms
• Clarity – cover explained in plain language, upfront
• Confidence – knowing you can rely on us at claim time
• Fairness – technology that helps us keep pricing sharper and more accurate

Our customers sit at the front of every decision we make. This award highlights that focusing on them, rather than outdated processes, leads to better outcomes.

Looking ahead

We’re proud of the recognition, but we see it as a milestone rather than a finish line. Innovation never stops, and we’ll continue to improve how we serve New Zealand homeowners and landlords.

Complex insurance, made simple.

Try it for yourself. Start by getting a quote

Related articles

• Initio named MoneyHub’s favourite home insurance quote platform for 2025
• Great at insurance, even better to work for
• Award-winning innovation. Smart Claims wins 2024 Canstar award
• Technology you can trust
• Awards we’ve won

When you think about claims, people generally jump to their own worst fear of their property burning to the ground, and that’s exactly why we all buy insurance. Big marketing hypes insurance products as providing ‘peace of mind’, but what you’re literally purchasing is compensation in the event you submit a claim – and a reasonable expectation that any such claim will be processed and paid to you. What do you need to know about claims when it comes to your property insurance?

Don’t sweat the small stuff

Claims are there for the major events – think fire, earthquake, storm damage – but also the slightly smaller but still very costly incidents such as a leaking pipe that damages flooring that your tenant didn’t notice. Insurance isn’t there for the day-to-day maintenance of a property, so don’t use your policy for repairs, ware and tear, and upkeep, as your insurer may deny those types of claims.

What about damage and the new legislation amendments?

The recent amendments to the Residential Tenancies Act provide that a tenant is liable to pay their landlord’s insurance excess or four weeks’ rent – whichever is lesser – but only for careless or intentional damage. Accidental damage, such as spilling a glass of red wine onto fluffy white carpet, may still be the responsibility of the landlord; further Government guidance and future Tenancy Tribunal decisions will provide more certainty on this.

A snapshot of Initio’s last 12 months of rental property claims shows that unexpected events such as house fires and storms take the lion’s share of the number and value of claims:

What types of claims are the most common?

As the insurance provider to over $2.5 billion of Kiwi property, Initio has its fair share of claims – so based on our experience, we can give you an insider’s view on what to look out for. In the last 12 months to end of August 2019, our 4 most common claims in order:

#1  Sudden water leak (eg burst pipe) – average claim value $5,916

#2  Tennant damage (eg malicious damage) – average claim value $2,960

#3  Weather damage (eg storm, flood) – average claim value $5,732

#4  Hidden gradual water damage (eg slow dripping pipe) – average claim value $1,980

The best insurance of all is the proactive management of the risks faced by the property. For example actively keeping an eye on areas where hidden leaks are most likely to occur (under the kitchen sink and in the bathroom) will reduce the likelihood of damage.  But should you get hit with a nasty loss – well, that’s exactly what insurance is for.

Take action

Many customers seem to think that they must leave their water sodden carpet festering away until the insurance assessor turns up or their insurer says it can be taken out. This is definitely not the case. My advice is to act and to start the clean-up process; take photos and get on with things. It is important to note that most insurers want you to take steps to reduce any further loss, and taken action aligns with this. The exception here is fire damage, following a fire you will want to take steps to secure the property (eg.  boarding up entry doors) but you should leave the property as is so that fire investigators have the best chance of determining the origin of the fire.

Know the process

The process around submitting and receiving payment for claims can be frustrating if you don’t know how long you’ll be kept waiting, and what is required of you as a claimant. So, when choosing an insurer it’s good to take the time to understand this upfront – so if and when you suffer a loss, you know what to expect and can have confidence in the process.

Get a quick quote online, insure online, lodge and see the progress of your claim online Initio.  
Learn more about landlord insurance
Learn more about house insurance
Learn more about how claims work at initio

Diving into the next part of our series, we’re tackling how to stay one step ahead of Mother Nature’s surprises. As the seasons shift, weather patterns can change rapidly, bringing unexpected conditions right to our doorsteps. Lately, we’ve noticed an uptick in flooding enquiries from our community, highlighting the importance of being alert. We’re all for optimism, but being ready for any weather is just common sense. So, let’s pack our emergency kits and make sure we’re prepared for whatever comes our way. Here’s a quick guide to keeping safe, protecting your property, and getting through any weather challenge.

Make sure you’re ready for Mother Nature’s curveballs

Regardless of the type of natural disaster that might take place, the drill’s pretty much the same. So, let’s tuck this know-how into our mental back pocket – because, let’s face it, it’s always good to have a plan before the weather decides to crash our party. It’s been just over a year since we witnessed the severe impact of the consecutive flooding and storms of early 2023. They were a soggy reminder that while we’d love a year filled with nothing but sunshine and gentle breezes, hoping for the best without preparing for the rest is like wearing socks with sandals – a risky fashion statement in the world of weather.

While we remain hopeful for a calmer year ahead, we wouldn’t be in the insurance game if we didn’t value cautious optimism and thorough preparation for unforeseen events.

Make sure your emergency kit isn’t just a collection of last year’s Halloween candy and a flashlight with dead batteries. The following simple steps can lessen the impact of future major events and help make your recovery just that little bit smoother:

Stay Safe and Informed

• Listen to updates from official channels like Civil Defence and emergency services. Keeping you, your family, and your fur babies out of harm’s way is priority number one.
• Gather essential items like your emergency bag and a lockbox with important documents.

Secure and Document

• If your home is safe, make temporary repairs to secure it. Take photos of any damage for insurance purposes.
• Move valuable items to a safe place if possible. Your insurance might cover the cost of storing these items.

Communicate and Manage

• If your home is damaged but livable, contact your insurance provider for advice on urgent repairs. Keep all documentation and receipts related to the damage and repairs.
• Be aware of repair scams. If the damage is serious or your home is not safe, get in touch with your insurance provider for prioritised support.

Cleanup and Claims

• Begin cleanup for flood damage by removing affected items, and document everything with a list and photos. Keep damaged items for assessment.
• Arrange for emergency repairs to prevent further damage, knowing these costs can be covered by your insurance claim.

This guide ensures you know the steps to take for safety, protecting your property, and efficiently handling insurance claims during emergencies.

OTHER ARTICLES OF INTEREST

• Am I covered for Natural Disasters?
• There’s been a natural disaster. What happens next?
• There’s a major weather event forecast for tomorrow, can I insure tonight?
• When do I need contract works insurance?

EXTERNAL RESOURCES

• Civil defence. Make emergency plans
• Get ready. What items do you need in your emergency kit?

Smart moves insight VI

In this final chapter of our Smart Moves series, Graeme Fowler reflects on the future of property insurance and what landlords can do now to stay ahead, no matter what the market throws their way.

Do you spend much time thinking about where insurance is heading?

“Not really—but I do make sure I’m ready to adapt when things change. You can’t control the market, but you can make sure your foundations are solid.”

Graeme’s approach is simple: focus on what you can control. That means keeping your policies current, reviewing your cover annually, and ensuring your paperwork is in order—especially as your portfolio grows or changes.

What do you think landlords should be doing to future-proof their portfolios?

“Keep your policies up to date. Review your sum insured. Don’t let cover lapse just because you’ve had a quiet run. Disasters don’t check your calendar.”

Graeme recommends making policy reviews a yearly habit, particularly after renovations or new purchases. He also stresses the importance of maintaining enough cover to reflect today’s rebuild costs—not the prices from five years ago.

Managing this doesn’t have to be hard. With initio, you can renew your policy, adjust your excess, update cover, or add new properties—all in just a few clicks. You can check and update your sum insured anytime using our digital tools and calculators, with helpful articles to guide you through.

• Tips on calculating your sum insured  
• Why does my rebuild cost change?
• Use the Cordell Sum insured calculator

Are there trends landlords should be watching?

“The cost of insurance is likely to keep rising. That’s just the reality. So work it into your numbers—don’t treat it like a surprise.”

Graeme points out that premiums, like everything else, are being affected by inflation, labour shortages, and increased risk exposure. And while you can’t change these external forces, you can plan for them.

Any final advice for new or growing landlords?

“Don’t treat insurance like a checkbox. It’s not something you do once and forget about. Make it part of your overall strategy—protect what you’re building.”

That mindset is key. Insurance isn’t just a cost—it’s a tool to protect your investment, preserve your cashflow, and reduce uncertainty. Whether you’re insuring one property or a large portfolio, the goal should be the same: stay covered, stay compliant, and stay in control.

Final thoughts from initio

Managing your insurance is designed to be easy and on your terms. No paperwork, no phone calls, no waiting around. Just fast, flexible, and fully online insurance that fits the way you work.

We’ve built a platform for property investors who value control, speed, and transparency – because we’re investors too, and we know the frustrations of traditional insurance. Whether you’re updating your cover, adding a new property, or making a claim, everything is in your hands, 24/7.

You get real-time quotes that reflect up-to-date risk and levy data, automated policy updates, instant documentation, and built-in tools to help you manage rebuild costs and risk exposure.

Complex insurance, made simple (finally!). That’s the initio way.

Thanks for following the Smart Moves Series.

Want more insights from experienced investors? Keep an eye on our blog for upcoming interviews, case studies, and landlord resources.

Want the quick version?

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

Related support articles:

• Calculate your sum insured
• Cordell Sum insured calculator
• Why insurance is non-negotiable. Smart moves, part I
• Smart strategies for premium, excess and payment timing. Smart moves, part II
• Inspections, paperwork and claim readiness: Smart moves, part III
• How to think about risk (and why location isn’t everything): Smart moves, part IV
• Is self-insurance ever worth it? Smart moves, part V

Christmas is the busiest time of year …. for burglars.  House insurance is just one part of managing your house and contents risk.  Heres a guide on protecting your property.

It’s coming into that time of year where we like to take a load off – relax for a couple of weeks, put the feet up at the bach, or even head off overseas – but it’s also the time of year when burglars tend to be more active. Leaving houses empty for periods of time can be risky in several ways, and among other factors, result in an uptick of property insurance claims. We’ve all seen Home Alone!

Holiday homes are particularly vulnerable as they are often left unoccupied for extended periods of time, but even our own homes need to stay secure and damage-free over the silly season.

Burglary prevention is equally important for holiday homeowners, landlords, and people with a single main residence. Importantly, burglary isn’t only about having your contents stolen, but also the fact that thieves can cause significant damage to other possessions and the property itself whilst trying to gain access.

Property insurance cover is designed to protect you if the worst should happen, but as a property owner there are several steps you can take to avoid having to deal with the heartache and distress of someone illegally entering your property, and ultimately having to make a claim on your policy.  

Prevent opportunistic burglars from targeting your property by:

• Keeping all valuables out of sight. Gifts under the tree are tempting for thieves so make sure they, and other valuables, can’t be seen from the outside the home. Also be careful when disposing of any tell-tale packaging
• Checking window joinery, and promptly replacing or repairing any loose latches
• Installing security stays on windows
• Fitting deadlocks or deadbolts to all external doors, especially older doors and ranch sliders which can be more easily broken into
• Installing a burglar alarm and advertising the presence of an alarm
• Installing exterior sensor lights, and checking any existing lights are working correctly

If possible, make it difficult for someone to break into your home. Trim trees and shrubs so there are no places for burglars to hide and move wheelie bins and other large objects away from fences, ledges and drop-offs wherever possible. Lock your shed and put away any tools, to remove the temptation of them being used to aid access.

Something else to consider is not advertising that you are away: keep your lawns mowed, gardens tidy, the mailbox clear and avoid leaving messages on social networking sites and answering machines with dates and other specific details of your absence. Let your neighbours know if you’re going to be away, give them your contact phone number, and have if you a good relationship with your neighbour – ask them to clear your mail, or park in your driveway to keep up the ruse. 

Good security makes people feel safe; it also has the added benefit of retaining good and long-term tenants – and for holiday homes, a reputation for a safe and secure property.

Smart moves, part V

In this edition of the Smart Moves series, we tackle a question some seasoned investors eventually ask: should I self-insure? Graeme Fowler shares why, even with decades of experience, it’s not a gamble he’d take.

Have you ever seriously considered not insuring?

“Not once. Even if I owned 500 houses outright, I wouldn’t do it. The risk is just too big.”

Graeme says the idea of not insuring, or ‘self-insuring’ – where you skip traditional insurance and rely on your own reserves to cover any potential loss – might sound appealing to confident investors. But in reality, it’s a dangerous bet.

From initio: Some landlords toy with self-insurance after years of no claims. But it only takes one event – a fire, a major flood, an earthquake – to wipe out years of progress. Comprehensive cover isn’t just peace of mind, it’s smart protection for your property and future income.

Why do you think some landlords consider it?

“Usually because they haven’t had a big claim yet. It gives a false sense of security. You think, ‘I’ve never had to claim – why am I still paying?’ But the day you need it, you’ll be glad you did.”

Graeme compares it to health insurance – you don’t buy it hoping to use it, but you definitely want it when things go wrong.

What kinds of events make insurance non-negotiable?

“Fires are the big ones for me. I’ve had a few over the years, and they’re expensive – repairs, temporary accommodation, loss of rent. Without insurance, I would’ve taken a massive hit.”

He also points out that natural disasters like floods and earthquakes are unpredictable and can affect multiple properties at once – something no reserve fund can reliably cover.

From initio: Our policies cover comprehensive replacement for accidental fire, storm, flood, and more. And with loss of rent included when a claim makes the home uninhabitable, your income is protected too.

But it’s more than that, insurance is what steps in when the stakes are highest. A fire or natural disaster doesn’t just damage property – it disrupts lives. You might need to relocate tenants, pause income, and navigate months of rebuilds or repairs. That’s not something most landlords can self-fund, especially if multiple properties are impacted at once.

That’s where we come in. The purpose of insurance is to absorb those risks on your behalf. You pay a premium so that when the worst happens, you’re not left scrambling. You’re backed by a provider that’s prepared to step in with cover, support, and real financial backing when you need it most.

And because disasters don’t give you notice, our policies are designed to respond fast. Claims can be lodged online in minutes, and we’ve built a digital-first platform to speed things up – so you’re not stuck waiting around when time matters most.

What would you say to investors who feel overinsured?

“You’re not. You’re covered. That’s a good thing.”

Graeme says insurance isn’t about trying to beat the system – it’s about protecting what you’ve built. “I’d rather have cover and never use it than need it and not have it.”

From initio: With the right cover in place, you’re not throwing money away – you’re protecting your investments from the risks you can’t predict or prevent.

Coming up next in the Smart Moves Series:

Looking ahead: what does the future of insurance for landlords really look like?

Want the quick version?

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

Related support articles:

• Why insurance is non-negotiable. Smart moves, part I
• Smart strategies for premium, excess and payment timing. Smart moves, part II
• Inspections, paperwork and claim readiness: Smart moves, part III
• How to think about risk (and why location isn’t everything): Smart moves, part IV

Another year has come and (nearly) gone so here’s a review of the year that was.  This year, initio processed nearly 45% more claims when compared to 2021. We think you’ll agree, it’s a big increase and is indicative of both of greater rate of weather-related claims, and the significant support from kiwi homeowners (more policies, means more claims)

In relation to the house & contents claims we saw this year, accidental damage was claimed most frequently at 24% but only cost 12% of all payouts. On the flip side of this, pesky weather-related events (storms, flooding, wind, rain) were the cause of 17% of our claims but responsible for nearly 28% of our payments. 

They were closely followed by various types of claims citing water damage as the cause (not including weather-related flood damage)  costing 23% and (accidental) fire claims 16% of all payouts. It’s also worth noting here that less than 1% of all claims cited accidental fire as the reason. This means that while it might not be a common reason to claim insurance, it sure is costly. 

Insurance is there to cover you for the unexpected, but sometimes the unexpected is also a little unusual. Our team have come up with the following claims that deviate from the usual reasons:

Dog + Robot Vacuum = Big mess

While modern technology is usually supposed to make life easier, sometimes it can go horribly wrong. This year we saw a claim involving someone looking after their parents’ dog. This person had to take a zoom meeting and during that time, the dog, unfortunately, had a code brown on a rug. This also coincided with their robot vacuum doing its rounds which tried its very best to help but ultimately made the situation much, much worse.

Both the vacuum and the rug needed to be replaced (but they kept the dog).

This year we saw 11 pet damage-related claims in total (1% of total claims). Our four-legged friends caused nearly $18,000 worth of damage this year – which doesn’t include one motor vehicle accident caused by swerving to avoid a cat. Dogs proved to be the most troublesome with the finger being pointed at them twice as often as cats.

Speaking of family members, children have also caused their fair share of damage this year. Although worth pointing out, the two-legged family members haven’t caused as much damage as pets.. We’ve only seen 6 claims involving children. These included:

• Drew on lounge carpet with a marker (for two different claims)
• Damaged fridge 
• Scratched television
• Damaged walls
• A toy was thrown at the TV – breaking the screen. 

Technology has also been in the wars this year. We’ve seen 7 claims involving drones, which a couple of years ago wouldn’t have even been a blip on our radar. Phones are still the most commonly claimed gadget, but who knows what the future looks like?

In terms of household items, toilets have been the most troublesome (including x2 phones dropped into the toilet) with blocked pipes coming in second. 

We try to remove roadblocks in our claims process – there’s enough stress dealing with the event that you’re claiming for in the first place. We make an effort to alleviate some of that stress by processing claims as quickly and efficiently as possible. 

Hopefully, you’ll never need to find out for yourself how good we are, but it’s nice to know we’re there for you when you need it

Percentages in this article have been rounded.

The hot recent housing market has seen Kiwis buying and selling houses at some of the highest rates ever.

While the effects of FOMO (fear of missing out) may make it tempting to dive into the market, we’re here to remind potential home-owners the importance of due diligence before buying, particularly dealing with meth contamination.

We’re seeing signs of complacency creeping in, as people look to ‘hurry up’ the process, or start reaching for houses that aren’t in the best nick.

If you’re buying a rental property it’s essential you consider that it could be contaminated with meth.

The seller must disclose to potential buyers if there is contamination over 15 micrograms (μg) per 100 square centimetres of meth contamination. This is considered a material property defect.

However, the seller only needs to disclose contamination below 15μg per 100cm² if they are specifically asked by the prospective buyer (or where the buyer has shown a clear interest in meth contamination).

Your first takeaway should be that if nothing is provided, simply ask the seller about meth contamination at the very least. This is an easy win.

No meth information provided by the seller?

Disclosure is only required if the seller knows about the contamination. In reality, people often don’t know their property is contaminated as there’s no legal requirement to keep testing your rental. Meth often flies under the radar, especially at lower levels.

Therefore you should always have some form of confirmation it isn’t contaminated. See first if anything is disclosed on the real estate listing (ask the agent!). If not, ask the seller if they suspect there could be any contamination (preferably in writing).

If neither can provide any confirmation, you should arrange a test yourself. You can easily do a composite test with a self-testing kit for less than $50. This won’t tell you the level of contamination – it’s simply to tell you whether meth is present or not. It will only put a small dent in your budget, and point out if a more expensive professional composite test is required to find the exact levels.

A swab test is well worth the money.

What if you buy a contaminated house unknowingly?

In short, you could be in for a cleaning bill in the tens of thousands. We paid out an average of $22,000 per meth claim in 2020.

Unfortunately we’ve seen more examples of people buying new houses, and quickly finding contamination. They then enquire about lodging a meth contamination claim.

It’s a painful conversation we never want to have, as in most cases it won’t be covered.

If there’s no record of the house being clean when purchased, insurance companies generally won’t pay for meth discovered within 90 days of your policy beginning. This is because they don’t know the culprit who is responsible, and chances are the contamination happend before the period of cover.

So please take a moment to enquire, ask, and test for meth where necessary before buying. It could save you thousands!

Initio are the pioneers of online house insurance in New Zealand.

• Learn more about our meth contamination cover
• When is meth testing required or recommended?
• Learn more about specialist landlord insurance cover

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