What claims cost the most, and what are the most common claims of 2024?

As we approach the end of 2024, we’ve taken a closer look at the trends in claims across the range of insurance policies we offer. The main ones being holiday homes, rental properties, owner-occupied homes and vehicles. Understanding these trends helps us, as your insurance provider, to stay on top of the risks that matter most to you – and also gives a bit of insight into what’s happening out there in the real world. Here’s a summary of what we’ve found.

Please note these figures only cover the most common categories. They are not an all-inclusive list and may not total 100%.

The most common claims this year

Across all policy types discussed in this article – Own Home, Holiday Home, Rental/Landlord, and Vehicle – two trends dominate: accidental damage and water damage.

Accidental damage is one of the most common types of insurance claims because it covers a wide range of unexpected scenarios. Accidents are often unavoidable, even with the best precautions, which is why having comprehensive insurance is so important. It ensures you’re protected from the financial impact of repairs or replacements, helping you get back to normal quickly without unnecessary stress.

Water damage, including hidden water damage, is another significant area of cover. Hidden water damage applies to gradual leaks from internal water pipes or tanks that aren’t visible. Coverage is subject to specific conditions and limits, so it’s worth understanding what’s included in your policy. Sudden water damage, such as from a burst pipe, is generally covered under most policies.

For more details about how we handle water damage, visit our water damage support page – it’s always good to know exactly what’s included.

For more information:

• Is my water damage sudden or hidden gradual damage?
• How to claim for accidental damage

The most expensive claims across all policy types

While frequency tells one side of the story, cost paints a different picture. Here’s a look at the claims that we’ve paid out the most amount of money for this year:

Some key insights stand out when it comes to the costliest claims. Thankfully, weather-related claims have dropped a few spots this year, providing some much-needed relief.

While accidental damage was the most frequent reason for our claims, it accounts for just 10% of the total payouts – indicating many smaller, less costly incidents.

When accidental fires occur, they’re among the most financially costly claims. These events often result in extensive damage, sometimes requiring a complete rebuild of the home.

Prevention is always the best defence against accidental fires. Simple steps like never leaving candles or cooking unattended, regularly testing smoke alarms, and ensuring your electrical systems are safe can greatly reduce the risk. While the financial cost of a fire can be substantial, the threat to human lives is immeasurable.

For more information:

• Is my house insured for fire?
• How to claim for accidental damage

General insights by property type

Own Home/Owner-Occupied

Weather has raised its ugly head again this year, but thankfully we’ve been spared the extreme damage experienced in 2023. Historically, summer is a season when storms and flooding can cause significant damage, so it’s a good time to take precautions to protect your property. If you’d like to learn more, check out our support articles for helpful tips and information:

• Understanding flood risk
• Insuring before a storm

Rental/Landlord

Similar to own home and holiday home insurance, water damage and accidental damage are the most common claims for rental properties. These issues often arise from the higher turnover of tenants or insufficient regular maintenance. What sets rental properties apart, however, is the added risk of loss of rent & malicious damage cover.

Learn more about these topics:

• Am I covered for loss of rent?
• Protecting your rental property from crime

Holiday Home

After the usual suspects of accidental damage & water damage, these properties see a higher risk of burglary and weather-related claims. Being unoccupied for long stretches makes them vulnerable, particularly during storm seasons. Burglary ranks as the third most common issue. Our Holiday Home insurance basics article offers helpful tips on mitigating these risks.

For more information:

• The differences between Holiday Home & Own Home cover
• Holiday Home basics
• Is my unoccupied home still covered?

Vehicle

One of the main standouts in 2024 is glass damage – it’s the most common claim by far. These claims, while annoying and inconvenient, usually don’t cost much to fix.

When we look at the vehicle claims we’ve paid out the most for, major accident damage tops the list. The good news? The Roadside Assist portal is now available for vehicle customers who’ve added the Roadside Assist feature to their policy. If you haven’t added it yet and want to know more, you can start here.

Another common (and costly) culprit is damage from static collisions – when your car meets an immovable object. 

For more information

Roadside Assist for initio vehicle customers

When we look at the vehicle claims we’ve paid out the most for, accident damage tops the list. The good news? Roadside Assist Online is now available for vehicle customers who’ve added the Roadside Assist feature to their policy. If you haven’t added it yet and want to know more, you can start here.

Another common (and costly) culprit is damage from static collisions – when your car meets an immovable object. And we hate to break it to you, but that pole you reversed into didn’t sneak up behind you. 

For more information

• Roadside Assist for initio vehicle customers

What does this mean for you?

These trends highlight the importance of staying proactive with maintenance, securing your property, and ensuring your insurance is comprehensive enough to cover frequent and high-cost risks. As your insurance provider, we’re here to help – whether it’s providing advice on minimising risks or ensuring your cover matches your needs.

Did you find this interesting? You might also enjoy our article on the weird and wonderful claims from this past year.

The statistics presented in this article are based on a comprehensive analysis of claims data from initio for the calendar year of 2024 (1 Dec 2023 – 27 Nov 2024), spanning our entire claims portfolio. Please note that all figures are approximate percentages, calculated to offer a representative overview of claim trends during this period. These figures only cover the most common categories. They are not an all-inclusive list and may not total 100%.

3 News Article
http://www.3news.co.nz/Increase-in-insurance-claims-for-P-Lab-dwellings/tabid/309/articleID/198177/Default.aspx

Initio Comments:
These are certainly some alarming statistics. I agree that it is good to be proactive in identifying when your rental property may become the victim of drug manufacture; MethMinder certainly seems to be the best approach. It is important to note that not all dwelling insurance policies provide cover for drug related / illegal activities (ie P Labs). In light of this it is crucial that the landlord understands the extent of their existing insurance cover. Initio Rental Property Insurance provides comprehensive cover for this risk and it can all be done (and managed) online. Have a look for yourself.

Its been almost a year since our rental property insurance and holiday home insurance policies started converting from an open ended cover based on size to a specified replacement sum insured.  A year on we continue to stress the importance of insuring rental properties and holiday homes correctly.

In the event of a major loss it is crucial that your sum insured is an accurate reflection of the actual cost to replace your property.

Just a reminder; the replacement sum insured is the amount it would cost to replace your property with modern equivalent construction materials, and should include the costs of demolition, professional fees, inflation and site improvements such as fencing, swimming pools, landscaping, retaining walls and driveways.  As one could imagine this is a very difficult figure to calculate without a knowledge of materials costs and building techniques.  This is why we encourage rental property insurance holders to get professional advice from a valuer or at the very least use an online replacement calculator such as Cordel:  Online replacement calculator 

Having fielded many queries from landlords, rental property insurance and holiday home insurance holders we have some myths to bust:

1.  The government valuation (GV) has nothing to do with the replacement value of the dwelling

2.  The market value or purchase price of your property has NO bearing on the replacement value.

3.  Demolition and removal of debris is very expensive.

4.  Building techniques and compliance are NOT the same as when your dwelling was first constructed.  Local authorities may not allow you to build ‘what you had’.

Always feel free to contact us if you have any further queries.  Initio online insurance is a specialist rental property insurance, landlord insurance and holiday home insurance provider.

2016 in review:

With 2016 gone and everyone returning from the beach, it is a good opportunity to reflect on the events of the past 12 months and provide an update on changes to the insurance market for 2017.

2016 saw a large rise in the prevalence of meth contamination claims and costs. This has had impacts across the entire market, and seen a lot of media attention.

The Kaikoura earthquake of 14 November also had an impact on the insurance market. Repairs are expected to cost hundreds of millions in repairs, says the Insurance Council’s Tim Grafton (read more here).

This means that insurance premiums across the board are likely to increase further as more costs to the Kaikoura earthquake are realised. Areas affected by the quake are also seeing stricter rules for cover, especially properties in the Wellington/Nelson area.

Positive changes:

While there have been some challenges, there are some positive results as well.

An agreement was reached between EQC and many private insurers (including Initio) that claims for damage caused by the Kaikoura earthquake can now be handled directly. This means that claims no longer need to go through EQC, and makes the process quicker and easier.

Further good news is that the old guidelines for meth contamination and remediation have been reviewed. The government has indicated that they will be adopting the new guidelines which have higher limits in place (MoH Summary). Ultimately, this should reduce the cost and exposure to property owners.

The government is also considering ways to deal with the Holler v Osaki issue, which saw tenants exonerated from accidental damage caused to properties. Housing Minister Nick Smith announced plans to change the law so that tenants would be liable to some extent, which should provide some relief to property owners.

With continuing changes in the property market, 2017 promises to be an interesting year.

Landlord, or Rental Property Insurance is an insurance policy that specifically covers the property owner (Landlord) for their Rental Home and some of the risks associated with being a landlord.

Owning and insuring a rental property is a bit different from owning and insuring your  own home. That’s why it’s so important to get the right insurance cover in place. Initio want to be able to take care of the unknowns and the what ifs for you.

So what are the insurable risks?

To find out check out our latest article.

What is Landlord Insurance?

(just ask our team)

We’re stoked to share that initio has been named one of the Top Insurance Employers of 2025 in Australia and New Zealand. This recognition is awarded by Insurance Business to the best insurance providers to work for, and we made the cut in the “less than 100 employees” category.

It’s a bit of a big deal. Mostly because it’s based on what our people think, not just what we say in job ads or onboarding packs.

So, how do you win?

It wasn’t just about who has the best snacks (although, shout out to our endless supply of choccy biscuits). The process involved our team anonymously rating initio across things like:

• Company culture
• Flexibility and autonomy
• Personal and professional development
• Genuine inclusion and wellbeing
• Whether people feel heard (and whether it actually leads to change)

Long story short: if you don’t walk the talk, you don’t make the list.

What this means for us

We’ve always believed that doing great work starts with enjoying where you work. That doesn’t mean ping pong tables and bean bags, it means feeling trusted, supported, and free to be yourself. It means flexibility that actually flexes. And it means being able to grow without having to shout for attention.

The fact that our team rated us so highly means the world. We’re not perfect (we’re still figuring out how to keep the office plants alive), but we’re committed to making initio a workplace that’s safe, empowering, and – dare we say it – fun.

Why it matters

At the end of the day, great insurance isn’t just about technology or pricing, it’s about people. People who care about customers, push boundaries, and back each other every day. That starts with culture. So this award isn’t just a nice badge, it’s a reflection of what we’ve built together.

Thanks to our team for making initio what it is. Let’s keep doing it differently.

Related articles

Meet some of our team

With Winter well and truly upon us, the heaters have come out. Not surprisingly most residential house fires occur during winter. Kitchen fires make up about a quarter of all house fires – they commonly start from unattended cooking and can quickly spread. As a landlord there are steps you can take to improve the safety of your tenants and home against fire:

• Consider removing curtains from kitchen windows as these provide an excellent fuel source for fire.
• Recommend tenants use camping type gas cookers outside only. When used indoors, these are both a fire hazard and health risk.
• Test smoke alarms at each property inspection. If tenants are removing the batteries considering replacing with a newer model that has a 10 year sealed battery and hush button.
• To reduce the risk of electrical fires, check power points for overloading. Where necessary consider installing additional power points. Faulty power boards are a common cause of fire.
• If your house has downlights installed prior to 2012, check that the ceiling insulation has the correct spacing around the lights to prevent overheating and fire.
• Consider installing safe and efficient heating sources. Tenants may even be happy to pay more rent in exchange for installing a heat pump.
• Clean chimney flues annually and make sure heat pumps are serviced and cleaned regularly to prevent fires and ensure heating sources are operating efficiently.

Double whammy on levies

Did you know that a large portion of your house insurance premium goes to the government in levies? For the average initio house insurance policy sold through our site www.initio.co.nz, over a THIRD of the cost to the home owner is levies…… and unfortunately that proportion is about to jump significantly with fire service levies increasing by 40% from 1 July 2017 and earthquake commission levies increasing by 33% from 1 November 2017, which will mean total levies will then make up almost HALF of the cost of an average initio house insurance policy.

While levies are perceived as a bad thing, because they hit each of us in the pocket, it is important to take account of the fact that the fund essential community necessities such as the New Zealand Fire Service, many of which are volunteer fire brigades in smaller communities.  These brigades require specialized trucks and machinery to attend fires and accidents of all types. So as the running costs increase, so too do the levies.

Rental properties generate income and grow in value over time, but they can also come with unique risks and costs.

One common question for landlords is, “What damage is most likely to occur at my rental property?” Knowing the risks and how to reduce them is key to protecting your investment.

A shift in claim trends: weather makes its mark

In 2023 we experienced exceptional circumstances, notably the Auckland Anniversary storms and Cyclone Gabrielle. Our, and industry, data shows a 10x increase in weather-related claims in the past year. Damage from floods and rain saw a substantial rise in claim payouts compared to 2022, while wind and storm-related claims also showed a notable increase.

Now, more than ever, natural hazard risks such as flood susceptibility, land stability, coastal surge and slope failure (all of which are being identified by local councils) are key to determining a property’s insurability.  For existing properties, and for those you intend to purchase, it is essential that you do your research and this could affect future costs, and even saleability.  

Outside of natural hazards, other risks still exist, and focusing solely on weather-related issues might leave you unprepared for other landlord challenges.

A closer look at 2023 rental property losses

Flood & rain damage: 

For initio in 2022, this category of damage represented 9% of the total number of claims lodged. However, in 2023, this has increased to 21% of the total number of claims. This underscores the substantial financial impact of flood and rain events. The damage to rental properties ranged from minor ceiling leaks to total destruction of the property.  

Wind & storm damage:
Unsurprisingly payouts rose by just over 50% compared to the previous year. While the number of claims lodged was similar between the two years, the severity and cost of damage was significantly higher, partly due to rising construction costs.  

Other water-related damage:
These are typically problems like bursting pipes and leaking hot water cylinders. In 2022, these made up 22% of claims lodged, dropping to 16% in 2023.  The most common water damage claim in both 2022 and 2023 is hidden gradual water damage (HGWD), such as pipes leaking under the kitchen sink, and blocked sewage pipes.  HGWD is often excluded from standard rental property insurance policies, but some policies like initio’s offer limited cover (usually $2,000 – $3,000) through a special extension.  The key to proactively managing this risk is regular property inspections and educating tenants to notify as soon as they see something damp.  

Accidental damage:
We’ve seen a wide range of claims in this category. These usually include unexpected incidents like broken windows, damaged cooktops and carpet stains. Accidental damage made up 13% of claims lodged in the 2023 period.  Not every accidental damage loss allows the landlord to hold the tenant responsible for the insurance excess.  Understanding where your responsibility as a landlord ends and the tenant’s begins will guide your communications with tenants following any damage.   

Other rental property incidents (by number of claims, not value):

• Malicious damage from tenants (3.8%) 
• Fire (accidental and arson combined) (1.8%).   
• Meth contamination (1.7%) 
• Problems with keys and locks (2.7%) 
• Impact damage, typically involving vehicles (2.5%). Eg, car versus garage.

While fire is a relatively rare type of loss, its severity is substantial when it does occur. The average value of a fire claim in 2023 is just over $50,000.

Loss of rent:
Loss of rent applies when damage occurs and the house can no longer be lived in. The floods in early 2023 displaced many tenants, resulting in loss of rent payments to landlords.  During the floods insurers needed to be practical and work with landlords in situations where the property was partially damaged and still able to be lived in.  

In situations where a tenant can no longer reside at the property due to an event like a fire or flood, the tenant must pay for their own relocation and temporary accommodation. It is not your responsibility as a landlord.  If a tenant has their own contents insurance this will usually cover these displacement costs.  

Some policies, like initio’s, also cover rent in scenarios where there is no physical damage to the house.  So this includes eviction or tenant abandonment. These situations made up 2.7% of total claims lodged in the past year.

Final word

Taking a proactive and sensible approach to managing risks as a landlord is its own kind of insurance. From what we observe in daily claim reports, landlords who prioritise choosing the right tenants, conducting thorough tenant checks, carrying out regular property inspections, installing fire extinguishers in kitchens, and keeping up with routine maintenance such as clearing gutters, plumbing and electrical work, have fewer damage issues and don’t add to the above statistics.

Selecting an insurance provider well-versed in landlord risk and that offers tailored policies for rental property owners complements a comprehensive strategy to reduce the risks you face as a landlord.

The statistics presented in this article are based on analysis of claims data from initio. The annual period being  October to October.  Please note that all figures are rounded and in some cases, where the claim type is embedded within a larger loss type, have been calculated to provide a representative view of the claim trends during this period.  Data from the Insurance Council of New Zealand was also utilised.  

Welcome to our newest blog series, where we delve into the essentials of readiness and resilience, covering everything from crafting a solid emergency plan to ensuring your sum insured is spot-on, and streamlining your insurance for the holiday season and beyond. However, before we explore these topics, we’re turning the spotlight on ourselves. 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.

Join us as we kick off this series by demonstrating our commitment to continuous improvement and meticulous preparation, paving the way for a discussion on how you can do the same.  It’s the first step in a series dedicated to empowering you with the knowledge and tools to protect what matters most.

We’ve got our house in order

Behind the scenes, we’ve been busy beefing up our infrastructure and services. Why, you ask? Because we want to be rock-solid for our customers when they need it. It’s all about making sure we’re ready with a helping hand, especially in those critical moments. By bringing in some of the coolest tech and smoothing out our processes, we’re not just hitting the mark; we’re aiming to soar way past it. Our mission? Building a stronger, niftier initio that’s ready to tackle whatever twists and turns come our way, giving our customers that awesome feeling of being in good hands. So, how exactly have we been doing this? Let’s dive in:

• Smart Claims upgrade: We’ve upgraded our smart claims system for quicker, more efficient processing. This ensures easier claims lodging and faster assistance in a crisis.

How to claim

• More team members: We want to make sure we’re always ready to help. So, we’ve brought more people into our team. This means when things get tough, you’ve got more friends at initio to support you when you need it most.

About us

• Location adjustments: We now use more detailed data in our location-based risk assessments. This helps us offer advice and solutions tailored to the unique risks of different New Zealand regions.

• Website upgrades: Our development team recently completed a 4-month platform refresh project to help us go faster and make your insurance even more seamless.

• Continuous learning: Following the 2023 events, we’ve refined our policies and practices to stay ahead in disaster preparedness.

No system can be entirely foolproof against the forces of nature. However, by taking these steps, we aim to enhance our resilience and readiness, providing our customers with the assurance that we’re better prepared to support them through any future challenges. Remember, being prepared is not just about having insurance; it’s about having the right support when you need it most.

The choices you make now can significantly impact your peace of mind and financial security in the future. Our team are always ready to assist you in making informed decisions about your insurance. Feel free to reach out with any questions, or visit our website for more information and resources.

Visit our FAQ pages for more insights and updates on how to manage your insurance effectively. Our goal at initio remains to make insurance easy.

Crack the champagne – a toast to our focus on insurance claims!

We are incredibly proud to be recognised for our hard work and innovation with the 2024 Canstar Innovation Excellence Award, which honors our efforts in setting new insurance claims standards for convenience and efficiency in the insurance industry.

Initio stands out not just for its technology, but for its practical, impactful applications that significantly improve the customer experience. Let’s explore the technological innovations at the core of our submission, which we call Smart Claims:

A fully digital, seamless claims process

Initio is one of the few insurance providers offering customers a 100% online claims process from start to finish, setting a new standard for convenience and efficiency in the insurance industry. Our Smart Claims platform eliminates the need for traditional phone calls to confirm details, handling everything online with ease and precision. This approach not only simplifies the claims process but also significantly speeds it up, allowing customers to focus on recovery and rebuilding without unnecessary stress.

Key features of our Smart Claims process:

• Streamlined submission: Customers can submit claims quickly and effortlessly, without the traditional hassles of paperwork and long waiting times.
• Efficient claims management: Our system ensures claims are managed efficiently, significantly reducing wait times and allowing our staff to focus on expediting claim processing rather than making follow-up calls.
• Reduced need for customer calls: Our online dashboard’s transparency and instant access mean fewer calls are needed, making us more available to pick up when you do call. This enhancement significantly improves your experience while allowing our support team to assist you more efficiently..

Proactive customer support and real-time updates

During Cyclone Gabrielle, Initio leveraged its advanced mapping tool, Locatio, to proactively identify and contact customers likely affected by the disaster. This not only ensured timely assistance but also demonstrated our proactive approach to customer care.

Enhancements in customer support:

• Claim support and updates: Our efficient system freed up our claims consultants to provide personalized support, focusing on those in critically affected areas.
• Continuous availability: Despite the digital focus, our claims consultants remained available via phone for those needing personal interaction, further supported by continuous online chat and easy claim access.
• Transparency and real-time updates: Customers could monitor the status of their claims through their dashboards, which included detailed updates such as site visits by builders and a comprehensive communication history.

Initio’s offerings are not only innovative but also distinctly superior to what is currently available in the market, both domestically and internationally.

What makes smart claims different?

• Complete online management: Our website allows customers to fully manage their policies independently, from purchase to claims, providing unparalleled control and flexibility.
• Advanced risk assessment: Utilising data from Regional and Government Councils and updates from the LINZ database, we provide precise risk assessments, enhancing our underwriting process.
• Synergy of smart claims and Locatio: The integration of these technologies not only reduces administrative burdens but also accelerates claims resolution, improving overall customer satisfaction.

What the Canstar judges said about initio’s online insurance experience

The awards panel recognised that initio is the pioneering insurance provider in New Zealand. We enable customers to secure quotes, arrange cover, and file claims swiftly via a digital platform. They praised initio for its effective service that simplifies insurance management for homeowners, utilising technology to evaluate risks promptly and precisely.

The judges were most impressed by the ease and efficiency of receiving a quote with Initio. There was consensus around the judging table that this could be disruptive as other insurers look to adopt a similar approach.

Our ongoing promise

Initio will continue to refine and enhance our platform, committed to providing the finest digital experience available in New Zealand, ensuring our customers receive outstanding service tailored to their needs.

• Read the full Canstar article here
• Ways we’ve upgraded our systems lately
• Moneyhub Editors Choice award 2023
• How to make a claim with initio

As we wrap up another year, it’s time to reflect on the fascinating, bizarre, and occasionally head-scratching world of insurance claims. While we see plenty of the usual suspects – cars driving into garage doors, kids toppling TVs, and the inevitable shattered dentures – this year’s claims have had their fair share of unexpected surprises. Let’s dive into some of the more unusual and recurring themes that stood out in 2024.

Up in flames

Fire claims are nothing new, but some of the culprits this year were particularly creative. Among the singed and scorched items:

• Electric scooters: Handy mode of transport, but not so handy when left charging unattended.
• Homebrew heating pads: A DIY fermentation item that ended in flames rather than fizz.
• Phone chargers: Reminder that dodgy chargers can do more than just overheat your phone.
• Electronic toys: A child’s aeroplane toy that transformed into an unexpected firestarter during charging.

While these incidents thankfully ended safely, they serve as a good reminder to keep an eye on electronics – especially when they’re charging.

Robots on the rampage

This year, robotic helpers had their share of mishaps, including a memorable case involving a Hydro Robotic Pool Cleaner. While the cleaner was hard at work, the family’s puppy, with a love for chewing, got to the power/control cable, gnawing it clean in half – a reminder that even tech isn’t safe from a curious dog’s teeth!

Another memorable incident involved a robotic mower and a bonfire. While the mower was navigating the lawn, a nearby bonfire burned behind a barricade. Once the fire died down, heat weakened part of the barricade, allowing the mower to wander onto the hot coals. An alert from the mower app came too late – the damage was already done. 

We’ve also had our fair share of claims involving robotic mowers being run over by vehicles. Whether these mowers have simply given up on life or were just in the wrong place at the wrong time, it’s a good reminder to check under your vehicle before driving off!

Lost gems and broken dreams

Losing jewellery is heart-wrenching, and this year saw a steady stream of claims for lost or damaged treasures. These included rings, bracelets, and other cherished pieces that were either misplaced, damaged, or, in one case, fell victim to a rogue drainpipe.

PSA: If your jewellery has seen better days, now might be a good time to have it checked for maintenance or repairs. Keeping them in good nick can prevent heartbreak later. 

For more details, check out our article on which items need to be specifically listed in your insurance policy.

Wild is the wind

Some claims highlight the unpredictable ways life can get messy – literally. This year, wind played a starring role in several liability claims, showing just how easily the elements can cause chaos. A few standouts include:

• Airbnb fire damage: Strong winds carried hot ashes from an outdoor fireplace through open sliding doors, burning the timber floors inside the accommodation. (We’re betting that bond didn’t cover it!)
• Marquee mishap: While being packed away, a marquee at an event was caught by a gust of wind and struck a parked vehicle.
• Flying debris: In another incident, a gust of wind sent wood from someone’s yard soaring over a fence, denting a parked car.
• Flying trampolines: Unsecured trampolines and strong winds are a recipe for disaster, as we’ve seen in multiple claims this year. In one case, even a properly secured trampoline was no match for particularly strong winds, showing just how unpredictable Mother Nature can be. If yours isn’t secured, now’s the time to make sure it is.

These moments remind us how easily accidents can happen – and why insurance is the best way to protect yourself against life’s unexpected mishaps.

Some of the more unusual…

Some claims stood out for their unique and unexpected nature this year, with these two being particularly memorable:

• The Broken Turtle Tank: A shattered aquarium caused water damage that made a big splash – literally.
• Fireworks inside a holiday rental: Yes, you read that right. Guests decided it was a good idea to let off fireworks indoors. (We can’t imagine the host’s reaction when they walked in to assess the damage.)

Here’s to 2025

While some of the above gave us a chuckle (and occasionally a gasp), they’re also a reminder of the diverse risks we all face. Fires, gadgets with minds of their own, and jewellery mishaps are just the tip of the iceberg.

As we move into the new year, we’ll keep an eye out for trends, helping to ensure we’re always ready to protect the unexpected. 

Here’s to another year of keeping you covered – whether it’s for the weird, the wonderful, or the downright bizarre. It’s our privilege to provide the protection and peace of mind you need, no matter what life throws your way. Here’s to a safe, secure, and hopefully less eventful 2025 – though if it isn’t, we’ll be here to help every step of the way.

For more information:

• What items do I need to specify?
• What types of claims are covered – and which aren’t?
• How to claim for accidental damage

Smart moves, part IV

In the fourth part of our chat with Graeme Fowler, we dig into risk – where it comes from, how to think about it as a property investor, and why you shouldn’t assume location alone will keep you safe.

Do natural disaster risks influence where you buy property?

“Not really. Any location can be hit. Look at Cyclone Gabrielle – it hit parts of the country hard, but none of my properties were affected. That wasn’t strategy – that was just luck.”

Graeme believes that chasing the “perfectly safe” location is unrealistic. Disasters don’t follow predictable maps, and if you’re insured properly, where your property is becomes less important than how it’s protected.

From initio: our quick quote tool, shows your property’s natural hazard profile upfront. 

Do you consider climate risk in your buying strategy?

“I’m aware of it, but I don’t let it stop me. What matters more is making sure you’re insured properly – because whether it’s a storm, fire, or flood, anything can happen.”

Graeme says the best protection isn’t where you buy – it’s what you’re covered for.

From initio: Our landlord policies include comprehensive cover for events like storms and floods. But having the right type of cover is only part of the picture. It’s just as important to make sure your sum insured is accurate. This is the maximum amount your property will be rebuilt for after a total loss, so it needs to reflect today’s building costs – not what it might’ve cost a few years ago. You can check and update your sum insured anytime through your online account. Not sure how to calculate your sum-insured? The Cordell Sum insured calculator is a great place to start.

So, how should landlords think about risk?

“You can’t avoid it entirely – so accept that some risk is part of the game. Just make sure it’s managed. For me, that means keeping insurance current and making sure I’ve got enough cover.”

Graeme suggests thinking about risk as part of the cost of doing business, not something to fear, but something to plan for.

From initio: Risk management is at the core of what insurance does – we carry the risk for you. That’s what you pay us for when you buy a policy: to take on the financial risk of the unexpected, so you don’t have to.

Location plays a big role in how risk is assessed. Some properties sit in higher-risk zones – floodplains, liquefaction-prone areas, or coastal regions exposed to storms. But risk isn’t just about the region. Two houses on the same street can have different risk profiles based on their floor level, drainage, slope, or construction.

That’s why we do the heavy lifting in the background. Our system automatically pulls up-to-date risk data from government hazard mapping, scientific assessments, and advisory updates. When these maps change, due to new modelling or recent weather events, we update our software accordingly.

Our quick quote tool includes these insights from the start, showing you a property’s natural hazard profile upfront. So you’re not just getting insurance – you’re getting a risk management tool that helps you make smarter decisions.

When you quote or renew your policy, we make it easy to check your current risk profile, coverage level, and any potential gaps. If something doesn’t look right, we’ll let you know.

What’s your advice to landlords who worry about “what if” scenarios?

“That’s exactly why you have insurance. Fires happen. Storms happen. And sometimes you get lucky – but sometimes you don’t. The point is being prepared either way.”

Coming up next in the Smart Moves Series:

Is self-insurance ever a smart move for landlords? (Spoiler: Graeme says no.)

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

Initio is pleased to announce that it has teamed up with Bookabach to provide insurance for holiday homes and baches that are rented out on occasion.   Our specialist rental property insurance policy has been tailored to meet the needs of properties with long term tenants and also those properties which are rented out on a short term basis (eg holiday homes).

If you own a holiday home and this sounds like you…. Even if you don’t rent it out that often, our policy is for you.

The main question is do you have the right covers.  Your existing insuring may take exception to the fact that your property is let our on occasion.  Get it right from the beginning and insure with initio.

See the recent bookabach article for some great things to think about: Got insurance (no, Really)