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 Is it only used as extra space for your household?

If you have two dwellings on your property and the second one is used only by you or your family—without being rented out—it’s important to have the right insurance to cover both spaces.

What counts as an extension to your own home?

If the second unit/home is;

• Used like a sleepout for members of your immediate family, such as teenagers or elder family members.  
• And you all predominantly share meals and/or facilities OR
• Used as a hobby room such as an art or music room OR
• Used as a home office space, then

It’s considered as an extension to your home and counts towards the one home unit/dwelling.

What insurance do you need?

For this setup, you only need one home insurance policy, which will cover both your main home and the second dwelling under the same policy. This ensures protection for:

• Your home and any structures used as part of your home for residential purposes on the property

Get covered today

With initio, you can get a quick quote and buy insurance online in minutes, making it easy to ensure your home and second dwelling are fully protected. 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.

Buy house insurance

Need help? If you’re unsure about what policies are right for your situation, contact us to make sure you’re fully protected.

Get covered today with initio – Quick quotes, easy online cover.

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
• Second dwelling on your property that your family lives in
• Renting out two dwellings on your property

Yes,  while your contents insurance covers most of your belongings up to the sum insured shown in your policy schedule, there are some limits that apply to certain types of items and situations. Knowing these limits can help you decide if you need to specify an item on your house insurance policy to ensure full cover.

If you’re not sure what everything in your insurance policy means, our guide on how to read an insurance policy walks you through in a simple, easy-to-follow way.

General policy limit

• For any single event, the most we’ll pay for all your contents combined is your sum insured (listed on your policy schedule).
  • If you’re not sure how much to insure your contents for, use the sum insured contents calculator.

Item-specific limits (unless the item is specified on your policy)

• Jewellery, watches, earrings, collections, cameras – $3,000 per item
• Surfboards, windsurfers, paddleboards, kite surfers, surf skis, dinghies, kayaks, canoes – $2,000 each (including parts/accessories in or attached to them)
• Remotely piloted aircraft (drones) – $3,000 each (including parts/accessories in or attached to them)
• Bicycles – $2,000 each
• Money, bullion, unset precious stones, credit/debit cards, and stamps (not part of a collection) – $1,000 total
• Parts and accessories for watercraft, motor vehicles, trailers, caravans, or aircraft (if not in or attached) – $2,500 total

Combined jewellery and watch limit

• If you lose multiple unspecified jewellery/watches in one event, the total is capped at $15,000 unless your policy schedule shows a higher amount.

Special benefits with separate limits

• Home office equipment – $10,000 at home, $1,500 while away
• Alternative accommodation – $20,000 per event (up to 12 months)
• Children living away from home – $500 per item, $5,000 total
• Hidden gradual damage – $2,000 per year
• Credit/debit card fraud – $500 per year
• Overseas travel cover – $5,000 per trip (up to 3 weeks)
• Keys and locks – $1,000 per year
• Stress payment – $2,000 once per total loss claim

When to specify an item

If you own high-value items (like an engagement ring, top-end bike, or premium surfboard) that are worth more than these limits, you can list them as specified items on your policy for full replacement cover.

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

Related articles

• Which items need to be specified?
• Which items are automatically covered under my house contents insurance?
• Sum insured contents calculator
• When do you need commercial insurance?
• How do I add contents insurance to my policy?

Is the cause of damage covered?

Not always. Home and Contents insurance policies typically exclude the repair of a fault, defect, or deteriorating building component. These are considered maintenance issues, not insurable events.

Insurance is designed to cover the result of something going wrong, but not the cause of damage itself. For example, an old pipe decays and eventually bursts, causing water damage to the house. Homeowners often expect that all of the costs to have this fixed will be covered, but this is not always the case.

House insurance policies generally have an exclusion for faults or errors in items. A common exclusion a homeowner would find in their policy is:

You are not covered for loss, cost or expense arising from the fault, defect, or omission on:

1. design, plan or specification, or
2. workmanship, construction or materials.

However, this exclusion applies only to the property directly affected, It does not apply to resultant damage and accidental loss to other parts of the property.

 

So, when is the cause not covered? (Examples)

• Rusted pipe bursts and causes water damage throughout the house – Insurance will cover all the costs of repairing the water damage, e.g., carpets, walls, and redecorating. However, the costs to repair and replace the rusted pipe are not covered. This is deemed a fault in the materials due to the old age of the piping.  The homeowner is responsible for this cost. An insurance policy is not a property maintenance cover and homeowners are therefore expected to pay for the costs of fixing faulty or old materials at their home.

• Leaking hot water cylinder valve causes water damage to downstairs ceilings and walls – Insurance will cover the builder’s costs of repairing the walls and ceilings that have been water-damaged.  It’s important to note here that many policies have a hidden gradual damage limit of between $1,000 and $3,000. However, the homeowner will need to pay for a new valve and the labour costs of installing it.

To learn more about Hidden Gradual Damage, read our detailed guide

When is the cause of the damage covered? (Examples)

The crucial factor when working out what is covered, is determining the specific cause of the loss.  If the cause is external to the house and is not related to the direct failure of something in the home (a water pipe for example) then everything, including the cause will be covered.

• An overnight freeze in temperature causes a water pipe to crack – Water damage occurs to the walls and flooring. Insurance will cover the cost to repair all of the resulting damage, and it will also cover the cracked pipe because the crack was caused suddenly by freezing. The cause of the loss isn’t the pipe failing on its own — it’s the sudden low temperatures. Because of this, the pipe itself is treated as resultant damage.

• A wind storm blows part of the roof off the house, rain follows, causing water damage – Again the key difference here is that the damage has been caused by something external and unrelated to the roofing itself.  All damages including the repair to the roof and the subsequent water damage will be covered by a house insurance policy.  If the roof had simply started leaking by itself (which is relatively common for older houses with original roofs), the the cost to repair the water damage (eg new gib ceiling and insulation) would be covered by house insurance but the repair to the roof would not.

• A power surge causes both the switchboard to catch fire, and it damages appliances – All damage is covered by insurance as the cause of the loss was not a faulty switchboard but rather an electrical spike that was an external event.

Articles of interest

• Am I covered for pet damage with initio insurance?
• Can more than one excess apply to a claim?
• How to claim for accidental damage

If you insure your home with initio, part of what you pay includes a compulsory levy for Natural Hazards Insurance. This levy gives you access to cover provided by the Natural Hazards Commission Toka Tū Ake (NHC), previously known as the Earthquake Commission (EQC). It sits underneath your initio policy and covers specific parts of your land and home when they are damaged by natural disasters.

NHC cover is a type of government-provided insurance that operates under the Natural Hazards Insurance Act 2023 to help with the cost of repairing or replacing your residential home and specific parts of your land that are damaged by:

• Earthquake 
• Tsunami 
• Landslip 
• Volcanic eruption 
• Hydrothermal activity
• Storm or flood (land only)   

You receive the NHC cover automatically when you purchase a house insurance policy.  If a natural disaster damages your home, NHC will help to pay for the cost and your home insurer, such as initio, will pay the rest up to your selected sum insured (within the terms of your policy).  

What Natural Hazards cover is provided by NHC for your home?

• Cover for your home or holiday home, plus related outbuildings such as a shed, garage or pergola.
• Essential services connected to your home (for example water, drainage, sewerage, gas, electricity or telecommunications) up to 60 metres from the home.

The maximum amount the NHC will pay towards repairing or rebuilding a home for a covered event is $300,000 plus GST for events on or after the 1 October 2022.  If the damage relates to an event prior, the cap may be lower.  The limit is per insured dwelling unit.

Anything above that cap is covered by your private insurer through your home policy.

Although your initio policy pays for the top up cover on your home, it’s important to know that initio cannot top up or extend any land cover beyond what the NHC provides. The amount paid by the NHC is the full entitlement for land under the Natural Hazards Insurance Act, and insurers are not able to offer additional land cover above this cap.

This means that if the cost to repair or stabilise the land is higher than the NHC settlement, initio is unable to pay the difference. Your initio policy will continue to respond to damage to your home and other insured buildings, but any extra cost relating purely to land sits outside the policy and cannot be covered.

What Natural Hazards cover is provided by NHC for your land?

Under the NHC, you are insured for the land that is inside your legal property boundaries AND;

• under your home and some related outbuildings
• within 8 metres of your home and select outbuildings
• under or supporting your main accessway for up to 60 metres (for example, the land under your driveway)

New Zealand is one of the only countries where homeowners have access to residential land cover. But it’s important to understand that this cover is limited and does not extend to all parts of your section.

Your land cover is based on a land cover cap, made up of:

• the market value of your insured, damaged land
• the value of insured retaining walls, bridges and culverts (to a limit)

If it costs more to repair the land than it is worth, the NHC will cash settle based on the land’s market value at the time of damage.

This means Natural Hazards Insurance usually contributes toward repairs rather than fully covering them.

What if my property has a Section 72 or Section 51 Notice?

Section notices are warnings placed on a property’s title that inform current and future owners, insurers and lenders about known or newly identified natural hazard risks. They affect how claims under the NHC’s natural hazards cover are assessed. There are two main types:

• Section 72 notices (under the Building Act 2004).

  • A Section 72 notice may be placed when a building consent is granted for land that has a known hazard (erosion, slippage, inundation etc).
  • If you later make a claim for damage caused by the hazard listed in that notice, the NHC may fully or partly decline your claim.
  • If the damage is caused by a different hazard than the one specified in the notice, the normal natural hazards claims process applies.

• Section 28 or 51 notices (which limit or cancel cover after a claim settlement)

  • These notices apply when the NHC limits or cancels natural hazards cover after a previous claim, for example if repairs haven’t been made or the hazard risk remains unaddressed.
  • Once a notice is placed, cover is limited or cancelled from the date of notification — and stays on the title until the homeowner provides sufficient proof of repair or risk mitigation.
  • If the cover is cancelled, future natural hazards claims may not be accepted for that property.

Section notices are important because they can affect your insurance cover under NHC policies and influence how your private insurer treats your claim. For homeowners, it means full disclosure of any known hazards or title notices is vital — failure to do so may lead to claim difficulties.  Repairing or mitigating hazard risks after a claim is critical to avoid a Section 28/51 notice limiting future cover.

How much does the levy cost me?  

It depends on your sum insured but for the vast majority of homeowners, the annual cost is $552 incl gst ($46 per month). 

If you have a home or unit with lower sum insured the levy increase will not be as much, and you may even see a reduction in NHC levy. 

Does the NHC levy change by region?

No, it’s a flat charge regardless of where your home is.  So Auckland homeowners pay the same as Wellington homeowners.  The cover and the levy does not take account of regional natural disaster risk.  

For further information regarding NHC cover please refer to the Natural Hazards Commission Toka Tū Ake (NHC) site.

This information applies to our following products:

• Own Home
• Landlord 
• Home & Guest
• Holiday Home
• Multi-Unit
• House Flip

The answer is, it depends. There are circumstances where a tenant is considered liable, but this can be a little murky.

Let’s have a quick look at some key parts of the 2019 Residential Tenancies Act for insights into how you may experience it as a landlord.

Three things in the act that seem clear on paper.

1. A tenant can be held fully responsible for intentional damage

A tenant who intentionally causes damage can be held liable, and the landlord can ask them to pay for the damage. This seems like common sense.

If the landlord has insurance cover for deliberate damage, they can lodge a claim with their insurance company. The insurer will pay for repairs, and try to recover the costs from the tenant later down the track (if it’s possible).

2. A tenant can be held partially responsible for careless damage

If a tenant has ‘carelessly’ caused damage they can be held responsible, but only up to a maximum of the landlord’s insurance excess, or four weeks of rent (whichever is less).

But what is considered careless? We’ll get to that shortly.

In this case, the tenant can share in with the benefits of the landlord’s insurance cover.

3. A tenant cannot be held responsible for accidental damage

If a tenant accidentally causes damage the act considers that sometimes; these things just happen, and the damage is the landlord’s responsibility.

However, this falls into the same problem. It’s often not crystal-clear whether damage is ‘careless’ or ‘accidental’, nor is it something the landlord and tenant may easily agree on.

Many things that would ‘sensibly’ be considered careless, have been ruled by the Tenancy Tribunal as accidental – such as knocking over and leaving a hot iron to melt into the carpet.

So it’s a good idea to read through some recent Tribunal decisions – this may be helpful for future tenant discussions.

A case of melted carpet

The 2019 changes to the act are still relatively fresh and we could still see its interpretation change. This 2020 example gives an indication of the Tribunal’s approach to the difference between careless and accidental damage.

Braziers v Guttman 2020

A landlord (Braziers) took their tenant (Guttmann) to the Tenancy Tribunal to recover damage.

The landlord alleged a patch of carpet was melted, and claimed the cost of carpet replacement from the tenant for $772. The tenant admitted the carpet was melted when they accidentally knocked over a hot clothes iron.

To avoid any liability the tenant needed to prove that they didn’t carelessly or intentionally cause the damage, and that it was a reasonable accident.

The tribunal decided the carpet damage was accidental in nature, and did not have enough ‘careless’ elements to render otherwise. There was no liability against the tenant for repair costs or excess, and the landlord would need to pay for the repairs themselves, or through their insurance (and pay the excess).

Full details of the case: Braziers Ltd v Guttmann [2020] TT 4251455

Accidental Tenant Damage vs Careless Tenant Damage

As we’ve mentioned, the Act’s definition of the difference between accidental and careless damage could be better, and we are now seeing the results of this coming through the Tenancy Tribunal process. Here’s our overview:

Accidental damage is something caused by the tenant, but outside their control (for example, tripping and putting a knee through a wall).

Careless damage is caused through lack of attention or concern for the consequences (for example, leaving a stove on while you go to do something else).

But ultimately these guidelines will be up for subjective judgement. We expect to see more disagreements between tenants and landlords over who’s liable for damage. If you’re a landlord that’s applying to the Tenancy Tribunal to see what they think, you should be prepared to prove that damage was caused intentionally – or at least carelessly to avoid paying an excess.

What’s our position on all this?

We believe a clearer division between what is accidental and careless tenant damage is needed. If no clear interpretation can be made then ideally all tenant damage – whether careless or accidental – should be treated as the responsibility of the tenant (up to the smaller of the excess or four weeks rent).

This will save a lot of time and arguments. However, based on recent cases the Tenancy Tribunal doesn’t quite see it the same way.

Why can’t the tenant use their own insurance to pay for the damage?

That’s a good question.

In the past tenants were considered completely responsible. If the tenant had their own contents insurance the landlord could rely on this to pay for damage by the tenant. Almost all contents insurance policies will include the tenant’s liability to at least $1 million for accidental damage.

For many landlords, confirmation of contents cover became a condition of tenancy; if the tenant accidentally burnt the house down, the landlord’s insurance company could get the money back from the tenant’s insurance company.

Then a couple of big things happened.

1) Court of Appeal decision on Holla v Osaki

This landmark ruling established that landlords and their insurance companies could no longer recover the costs of damage from tenants. In this case, it was $216,000 worth of damage caused by the careless action of the tenant leaving an unattended pot cooking on the stove.

2) Residential Tenancies Act 2019 

This act reversed the effects of the Holla vs Osaki decision and brought back some responsibility for tenants who cause careless damage. Responsibility, however, was limited to the lesser of the landlord’s insurance excess or four weeks rent.

It established that the tenant is fully responsible for intentional damage and that the tenant cannot rely on the landlord insurance policy for this. Remember that; as you would expect, a tenant’s contents insurance won’t provide cover for damage that’s intentionally caused.

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The Certificate of Insurance is a document that proves your cover is in place once you’ve purchased a policy. It’s also known as a Certificate of Currency. Banks and finance companies often ask for one when you apply for a mortgage or loan or when you are wanting to draw on the loan.

If you are yet to purchase the home or only looking to make an offer, you would alternatively obtain a “Letter of Intent” rather than a Certificate of Insurance.

Get your Certificate

Certificates are available at anytime once you have purchased cover through initio.  You can download your certificate directly from your dashboard login. Click the Bank Certificate option on the relevant policy details. A certificate will open which you can save.

If you haven’t yet purchased your policy, please find more information here on how to get started.

Need to change the bank noted on your Certificate?

If you need to change the Interested Party (bank/loan provider) or the Insured Name on the policy, select the “Change” option on the right side-menu of the relevant policy. You can then update the policy and we’ll automatically send you an updated Certificate to your email.

Need to change the dates?

We are unable to alter the inception (effective) date of a policy once it’s been purchased.  You can, however, cancel that policy from your dashboard back to the original inception date and re-purchase the policy (from your dashboard) with the correct date. A new certificate will be forwarded within minutes.  Our system will also automatically provide you with a full refund for the original policy.

Please find more information regarding changes to a purchased policy on our site here.

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When do I need house insurance?
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Confirmation of cover

Monthly insurance cover means that it is renewed and paid for each month.  It’s a month-to-month policy that automatically renews and is charged to your credit card on the same day each month.

How can I pay monthly?

You can choose to either pay monthly or annually when you first purchase a policy.  Our monthly payment is only available with a visa debit or credit card payment. We don’t offer a monthly direct debit from your bank account.

For details on switching between monthly and annual payments, check out our article on ‘Switching Payment Frequency‘.

Will you tell me if my monthly insurance payment changes?

Yes, we’ll let you know in advance if your monthly payment is going to change thirty days prior to any payment.

Your total insurance cost will typically change on the anniversary of your policy (i.e the day and month you first started the cover). This means that your monthly payment will remain the same for the year.  The exception being that if there is a government levy change (for example Fire & Emergency New Zealand levy rate change) that is mandated to be applied from the effective date of your next monthly renewal.

Each month we will send you an email confirming the renewal of your policy.  In that email, if the next month’s payment is going to be different (i.e its the anniversary renewal) we’ll let you know.

Your initio dashboard will also show you the date and amount of your current and next months payment.

When will my card be charged?

When you first purchase your policy the first payment will be withdrawn from your card on that day. All following monthly payments will be withdrawn from your card the day your policy renews (your chosen renewal date).

For example, if you buy a new policy on the 1st of January and the start date of the policy is the 5th of January, you’ll initially be charged for the first month on the purchase date, ie 1st Jan.  All future monthly payments starting from the February renewal will then be withdrawn on the 5th of each month.

What if I need to change my card details?

You can change the card that’s used for the payments at anytime.  To do so, please login to your initio dashboard and choose “credit card” from the “account” menu in the top right corner of your dashboard.  Here you can enter the new card information and any future payments will automatically default to the new card.  You can also see what card is currently registered for your payments on this screen.

What if my monthly payment fails to go through?

We’ll make four attempts in total to process the payment, you’ll receive an email notification each time — whether the payment succeeds or fails. We’ll include when the next transaction attempt will be on our email correspondence, so you can ensure funds are available at the right time.

Prior to the fourth and final Attempt:

• You can contact us prior to the final fourth attempt to request the payment to go through at an earlier preferred time. You can also trigger an earlier payment re-try by updating your credit card details kept in your initio dashboard — updating this field (even with the same card info) will automatically trigger an immediate re-try of any outstanding monthly payment.
• Get in touch with your bank if the payment has missed despite the funds being available, in some cases your bank may have put a hold on transactions for security reasons.
• Cover remains in place pending the successful payment within this time.

After the fourth and final Attempt:

If the premium remains unpaid after the final fourth attempt, the policy will lapse.  Cover then ceases back to the date of the initial missed payment.

We are unable to re-activate the original policy once it has lapsed. To re-instate the cover at this time, please do so by beginning a new policy from your initio account (dashboard) using the ‘+’ options.

What if I want to use a different card for each policy?

If you are purchasing annual insurance, you can use a different card for each and every purchase.  If you are purchasing monthly insurance, we are only currently able to facilitate one card for any monthly payments under your account.  If you wish to use a different card for a monthly policy, you will need to set up a new initio account using an alternative email address for any policy to be paid via the new card.

What if I want all my monthly policy payments to be aligned on the same day of the month?

The monthly due date automatically aligns with the original inception date of the policy.  Should you wish to change a policy’s monthly due date you would need to replace it with a new policy, effective on the preferred date.  Once the new policy is in place, you can then cancel the original policy, any unused portion of that policy will be automatically refunded.

Why does the cost of insurance change?

There are a number of reasons why your house or car insurance premiums can change each year.  Some of the more common reasons are:

• Change in the costs of materials and labour, which makes repairs to houses and cars more expensive (Covid supply chain issues put pressure on materials costs)
• Increased in the frequency and severity of weather events (Auckland Floods 2023, Nelson Floods 2022, Napier floods 2023 & 2021, Auckland tornado 2021 to name a few)
• Government earthquake levy changes
• Fire Service levy changes
• Increased re-insurance costs due to the way international insurers view New Zealand’s natural disaster risk (NZ is one of the highest risks in the world unfortunately)
• For cars, the main driver may have had birthday or an accident which changes the risk and in turn changes the premium (up or down) at the next policy anniversary renewal.

Related articles

How can I pay my premium?
How does monthly insurance work?
Switching payment frequency
Can I pay with direct debit?

Paying your premium with initio is simple and hassle-free.

Monthly payments can be made using Visa or Mastercard (credit or debit).  Annual policies have the additional options of online EFTPOS and Account2Account transfers for easy, secure bank payments.

Please note, initio does not currently offer direct debit OR manual transfers via your banking app or bank website.  Our staff will therefore not be able to provide you with bank account information.  Payment options are strictly limited to those outlined below.

Payment Frequency – We have options to pay either annually or monthly

Payment is required immediately upon the purchase of any policy.  You can choose to either pay annually or monthly at that time.  We do not offer other frequencies or payment terms.  Paying the annual premium up front is more cost effective, this can be seen in the quoted amounts.  Depending upon whether you are paying annually or monthly the following methods of payment are available;

Credit or Mastercard/Visa Debit Card (Monthly or Annual Policies)

Payment can be made online using your credit/visa debit card. We accept both Visa and Mastercard, including credit and visa debit cards.

• Monthly policies automatically renew and charge your card on the same day of each month.
• On an annual payment you purchase a years worth of insurance upfront (that you can cancel at anytime and get a refund for the un-used portion). Each year we will remind you when your policy is up for renewal and you will need to login to your dashboard to renew and pay for your policy
• There is no credit card fee applied to your insurance purchase.

Common Queries for Card Transactions

• Can I change from monthly to annual payments after I’ve started my cover?   If you would like to change from a monthly renewing policy to an annual renewing policy you will need to set up a new quote from your dashboard and select the “pay annually” option before continuing to fill out your property details again.  Unfortunately we cannot switch a monthly policy to an annual policy any other way at this time.  After you have set up a new annual policy we can cancel your initial monthly policy and issue you a refund of any overpaid premium.
• Can I pay with American Express?   No, we do not currently have an option for payment via American Express cards
• Do you charge a credit card fee?   No, we do not.
• What if I need to change the card used for my monthly payments?   This can be changed at anytime via your initio dashboard, please login, proceed to ‘account’ in the top right hand corner and then select ‘credit card’ to update.
• My monthly payment didn’t go through this month, how can I fix it?   You can arrange for the payment to be re-tried by either contacting our support team, or updating your credit card details in your initio dashboard. When card details are updated, the system will automatically try to process any outstanding payment—even if you re-enter the same card details.

Account2Account Transfer (annual policies only)

An additional option is provided for annual policies where you can use your bank account login details to load an automatic transfer payment from your selected account using the Account2Account service.  “Account2Account” is an online facility which processes payments directly from your account in real time, it creates a one-off online payment utilising the online banking system.  The payment is set up via our policy purchase system,  please choose the Account2Account option when you come to the initio payment screen. 

To use Account2Account, your banking account must be with one of the following banks:

• ANZ
• ASB
• BNZ
• Kiwibank
• The Co-operative Bank
• TSB
• Westpac

For a demo and/or further information of how Account2Account transfers work, please see here.

Online EFTPOS (annual policies only)

Online EFTPOS is a modern payment method that lets you make online purchases through your bank’s mobile app. This secure payment solution connects directly to your bank account without requiring you to share sensitive banking details. Currently available to ANZ, ASB, BNZ, The Co-operative Bank and Westpac customers.

How to make a payment

1. 1. Choose your bank from the payment options
   2. Enter your mobile phone number
   3. Open your bank’s app and approve the payment notification

Key benefits

• • Direct account-to-account transfers
  • No need to share banking credentials
  • Secure payment process
  • Simple smartphone-based payments

Frequently asked questions

How secure is Online EFTPOS?

Online EFTPOS is one of the most secure payment methods available today. This is because it doesn’t ask you to enter your bank or payment details directly. Instead, you approve each payment through your bank’s app, adding an extra layer of security.

What is the maximum purchase limit for Online EFTPOS?

The purchase limit for Online EFTPOS depends on your bank:

• • ANZ: $5,000 per transaction
  • ASB: $5,000 per day
  • BNZ: $12,000 per day
  • Westpac: $5,000 per day (unless otherwise agreed with Westpac)
  • Co-operative Bank: Flexible daily limit, based on your individual agreement with the bank

How long do I have to approve my payment?

You have 4 to 7 minutes from the time the payment request is sent to approve the transaction in your bank app.

Annual Payment Transaction Not Working?

It can be frustrating when your insurance payment doesn’t go through, especially if there’s money in your account. In most cases, the decline is coming from the bank rather than your insurance provider.

Below are the most common reasons this happens, and what you can do to fix it.

Two-factor authentication (2FA) approval required

Some banks require extra confirmation for payments now, especially larger or less frequent ones like an annual insurance premium. This is known as two-factor authentication, or 2FA. Instead of automatically approving the payment, your bank may pause it until you confirm it’s really you.

How this usually works:

• • Your bank sends a push notification to your banking app, or
  • You receive a one-time code by text, or
  • You’re asked to approve the payment in-app or via internet banking

If the approval step is missed or times out, the payment may be declined.  What you can do:

• • Keep your phone nearby when making the payment
  • Check your banking app and text messages for an approval request
  • Make sure your bank has your correct mobile number
  • If your bank uses an App, open the app and approve the transaction, then try the payment again

If you don’t see any approval request, contact your bank to check whether 2FA is required for this type of payment and whether anything is blocking it. Once the authentication step is completed, payments usually go through without issue.

Insufficient available funds – Even if your account balance looks fine, some of that money may be unavailable. This can happen if:

• • There are pending transactions
  • Your account has a hold or overdraft limit
  • Funds are reserved for another payment

What you can do:

• • Check your available balance, not just your total balance
  • Wait for pending transactions to clear
  • Transfer funds from another account if needed

Daily transaction or payment limits – Banks often place limits on how much can be paid in one transaction or within a day. What you can do:

• • Check your daily payment or card limit in your banking app
  • Temporarily increase the limit
  • Contact your bank for help

Card security or fraud checks – Banks monitor card payments closely. Larger or less common payments, like an annual premium, can sometimes trigger a security block your block.  This is one of their methods to protect you from scams. What you can do:

• • Check for a notification from your bank
  • Confirm the transaction is legitimate in your banking app
  • Call your bank to remove the block
  • Try the payment again once cleared

Expired or replaced card details – If your card has recently expired, been replaced, or reissued, the old details may no longer work. What you can do:

• • Update your card details in your online dashboard
  • Use your new card number and expiry date
  • Make sure the name and CVV match exactly

Online or international payment restrictions – Some banks restrict online payments or certain merchant types by default. What you can do:

• • Check that online payments are enabled on your card
  • Ask your bank if any merchant restrictions apply
  • Enable the payment type if it has been turned off

Temporary bank outages or system issues – Sometimes the issue is simply a temporary banking problem. What you can do:

• • Wait a short time and try again
  • Check your bank’s service status page
  • Try a different payment method if available

What to do if your payment is declined

If your annual premium payment doesn’t go through:

1. 1. Check your bank account and card details first
   2. Look for messages from your bank
   3. Contact your bank if the reason isn’t clear
   4. Once resolved, log back in and retry the payment
   5. If you are still having issues please give our team a call to assist.

If you’re ever unsure, our team can help guide you on next steps and make sure your cover stays on track. Insurance payments should be simple, and most declines are quick to fix once you know the cause.

Want to switch between Monthly and Annual Payment Options?

For details on how to switch between monthly and annual payments, check out our article on ‘Switching Payment Frequency‘.  For details on how to renew an existing annual initio policy and where to find that payment information, please check our this support article “How to renew your annual policy with initio”

Direct Debit?

Please note, initio does NOT currently offer direct debit as a payment option.

Get a quote

Useful links:

How to set up an account with a visa debit card
Does initio offer multi policy discounts?
Why has my house insurance premium changed?
How does initio get paid?
How to set up an account with a visa debit card

Loss of rent insurance helps protect your rental income if your property cannot be lived in or your tenant stops paying rent. Under initio’s landlord insurance, loss of rent cover is included automatically. This guide explains when it applies, how much cover you get, and what is not covered. This can also be included in our holiday home cover if you also rent your bach to guests.

Quick summary

• Loss of rent is automatically included with landlord insurance.

• Standard cover is $20,000, with options to increase to $40,000 or $80,000.

• Cover applies if damage makes the property uninhabitable.

• Cover may also apply after tenant eviction or abandonment.

• Overdue rent before eviction is not covered.

• Holiday homes have cover for cancelled guest bookings due to damage.

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What is loss of rent insurance?

Loss of rent cover replaces rental income when you cannot collect rent due to certain insured events. This usually happens when:

• Damage makes your property unliveable, or

• A tenant is evicted for non-payment, or

• A tenant leaves without notice.

It helps reduce financial pressure while you repair the property or secure a new tenant.

How much loss of rent cover do I get?

Landlord insurance includes $20,000 of loss of rent cover as standard.

You can increase this to:

• $40,000, or

• $80,000.

For property damage claims, payments stop when:

• Repairs are complete and the property can be rented again, or

• You reach your selected cover limit, or

• 12 months of rent has been paid,

whichever happens first.

When does loss of rent cover apply?

Property damage that makes the home uninhabitable

If claimable damage means your tenants must move out, loss of rent cover replaces the rental income during repairs.

Example: A flood damages carpets and internal walls. Your tenants move out while repairs are completed. Loss of rent cover replaces the rent you would have received during that period.

Cover is paid until the property is liveable again, up to your selected limit or 12 months.

Tenant eviction for non-payment of rent

If a tenant is more than 21 days behind in rent, you may apply to the Tenancy Tribunal for eviction.

Once the tenant is evicted, landlord protection under your policy can pay up to 6 weeks of rent, or until you find a new tenant, whichever comes first.

• Overdue rent (arrears) before eviction is not covered.

• Your selected property excess applies.

• You must be meeting your landlord obligations under the policy.

Tenant leaves without notice

If a tenant vacates the property unexpectedly and stops paying rent without giving the required notice, the policy can pay up to 6 weeks of lost rent, or until a new tenant is secured, whichever comes first.

• Normal vacancy between tenancies is not covered.

• Your selected property excess applies.

• You must be meeting your landlord obligations.

Does loss of rent apply to holiday homes?

Yes. If you rent out your holiday home to paying guests, loss of rent protection is included.

Holiday home damage and cancelled bookings

If claimable damage makes the property uninhabitable, we will cover lost rental income from cancelled guest bookings.

You automatically receive:

• $20,000 cover, with options to increase.

Payments may consider:

• Confirmed bookings that must be cancelled.

• Expected future bookings, using previous rental income history where appropriate.

The maximum payment is your selected limit or 12 months, whichever comes first.

What does not apply to holiday homes?

The 6-week tenant eviction or abandonment benefit does not apply to holiday homes, as short-term guests do not have formal tenancy agreements.

What is not covered?

Loss of rent cover does not include:

• Rent arrears before eviction.

• Normal vacancy between tenants.

• Guest cancellations unrelated to claimable damage.

• Eviction benefits for holiday homes.

Always ensure you are meeting your landlord obligations under the policy.

Frequently asked questions

Does landlord insurance cover unpaid rent?

It may cover rent after eviction or abandonment, but it does not cover overdue rent before eviction.

How long is loss of rent paid for?

For property damage, up to 12 months or your selected limit. For eviction or abandonment, up to 6 weeks.

Do I need to add loss of rent cover separately?

No. It is automatically included in landlord insurance and holiday home cover (if rented).

Related Articles:

• Loss of rent FAQs for landlord insurance
• Thinking about becoming a landlord and renting out your home?
• Guide to landlord insurance
• What does landlord insurance cover?
• Protecting your rental from crime

Switching your house insurance to initio is quick and easy, but timing is important to make sure you stay covered every step of the way. Here’s what to do and in what order.

1. Get your initio policy lined up first

Before you cancel your current policy, start a quote with initio. You can do this online in minutes. Once you’re happy with the cover and price, set the start date for your new policy.

• If you want your cover to roll over seamlessly, choose the day after your current policy ends.
• If your old policy ends at midnight, set your new one to start the next day, you don’t want a gap in cover.

2. Make sure the dates line up

Your current policy should stay active until your new one begins. Even a short gap could leave you without cover if something unexpected happens.

• Example: If your old policy ends on 14 June, set your initio policy to start on 15 June.

3. Sign up with initio

Once you’ve confirmed the start date, complete the sign-up online. You’ll get instant confirmation of cover and policy documents sent straight to your inbox.

4. Cancel your old insurance

When your initio policy is locked in, contact your old insurance provider to cancel your policy from the day your new cover starts. Most providers will refund the unused portion of your premium if you’ve paid in advance. 

• Be prepared for them to ask for proof of your new cover (you can email them your initio confirmation).

5. Double-check everything

Before your initio policy starts, check that:

• Your start date is correct
• You’ve got confirmation that your old policy is ending on the right date
• You’ve downloaded and saved your initio policy documents

Tip: If you’re unsure about dates, start your new policy a couple of days before your old one ends — a small overlap is better than no cover.

Get a quote

Useful Links

• How does initio compare?
• What is initio and how does it work?
• What are initio’s products?
• Technology you can trust

Working out the right sum insured can be harder when your home is not standard. Renovations, custom features, and specialist materials can all affect what it may cost to rebuild, and those details are easy to overlook.

Online calculators can be a helpful place to start. They are designed to give you an estimate based on typical building replacement costs, using the information entered along with available property and construction data.

Online calculators do not provide advice, and they may not capture every detail that could affect the rebuild cost of your home. If you would like a more tailored assessment for your specific property, a quantity surveyor or insurance valuation service may be the best option.

Key takeaways in this article

• Renovations can increase rebuild costs
• Unusual homes may cost more to rebuild
• Non-standard materials can affect your sum insured
• Custom features are easy to overlook
• A calculator is a useful starting point
• It’s worth checking whether the estimate feels right for your home

Why this matters for insurance

Your house insurance should reflect what it may cost to rebuild your home to a similar size and standard using today’s building costs.

For many homes, an online calculator can provide a useful estimate. But if your home has unique features, premium finishes, or non-standard construction, the cost to rebuild may be less straightforward. That is why it is worth taking a closer look before relying on the result.

What counts as an unusual feature?

An unusual feature is anything that could make your home more expensive or more complicated to rebuild than a typical home of a similar size. This might include:

• architectural design features
• high or vaulted ceilings
• custom kitchens or bathrooms
• bespoke joinery
• imported fittings or finishes
• unusual rooflines
• heritage details
• specialist glazing
• detached studios or sleepouts
• retaining walls or complex outdoor structures

These types of features can all add cost and may not always be fully reflected in a standard estimate.

How renovations can affect rebuild cost

Renovations can improve the layout, finish, or quality of a home, but they can also increase what it would cost to rebuild. For example, rebuild costs may be higher if you have added:

• an extension
• a new kitchen or bathroom
• premium flooring
• double glazing
• custom cabinetry
• upgraded cladding or roofing
• decks or attached outdoor living spaces

Even if the work was done years ago, it can still affect what your home would cost to rebuild today.

Why non-standard materials matter

Some homes are built with materials or methods that are less common. This can make rebuilding more expensive, especially if the materials are harder to source or require specialist trades. Examples can include:

• specialist cladding
• imported tiles or finishes
• plaster systems
• unusual timber treatments
• stone or decorative masonry
• architectural glass
• custom metalwork

If your home includes materials like these, it is worth making sure your sum insured reflects that.

Older homes can have hidden complexity

Older homes can also be more complex to rebuild than people expect. They may include features such as native timber, ornate detailing, decorative ceilings, original fittings, or older construction methods. Even if you would not replace every detail in exactly the same way, older homes can still involve more labour and higher rebuild costs.

Before relying on the estimate

If your home has been renovated or includes unusual features, it is worth asking yourself:

• Have I upgraded parts of the home since I last reviewed my cover?
• Does my home have high-spec or custom finishes?
• Are there any specialist materials that may cost more to replace?
• Is my home harder to rebuild than a standard house of similar size?
• Would site access make demolition or rebuilding more expensive?

These questions can help you decide whether the estimate feels realistic for your home.

Why a calculator is still useful

An online calculator is still a helpful starting point. It can do a lot of the heavy lifting and help you get close to a realistic figure without having to work it all out from scratch.

Initio uses the Cotality Sum Insured calculator to help estimate what it could cost to rebuild your home. It uses the details you enter, or confirm, and compares them with construction industry data to generate an estimated rebuild cost for the improvements on your property. The main thing to remember is that it provides an estimate, not a tailored assessment. If your home has features that make it different from a more standard property, it is worth taking the time to sense-check the result. 

Final thoughts

If your home has unusual features, renovations, or non-standard materials, it is worth giving your sum insured a bit more attention. These details can all affect rebuild cost, and they are easy to underestimate.

An online calculator can help you get started, but the final figure should still feel right for your home. If you are unsure, getting a more tailored assessment from a quantity surveyor or insurance valuation service may give you more confidence in the amount you choose.

Related articles

• What is a total loss in house insurance?
• Top 5 mistakes to avoid when insuring property

FAQ’s about non-standard houses

Can renovations affect my sum insured?

Yes. Renovations can increase the cost to rebuild your home, especially if they involve extensions, upgraded finishes, or custom features.

What are non-standard materials in insurance terms?

These are materials or construction features that are less common and may cost more to source, replace, or rebuild.

Can a standard calculator still work for an unusual home?

Yes, it can still be a useful starting point. But if your home is more complex than average, you should review the result carefully.

Why would an architecturally designed home cost more to rebuild?

Architectural homes often include more complex design features, specialist materials, and higher-end finishes, which can increase rebuild cost.

Can site access affect the cost to rebuild?

Yes. Steep, narrow, or difficult-to-access sites can increase demolition and rebuilding costs.

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).