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or a full-blown rebuild?

So, you’ve bought a do-up. You’ve watched the videos, binge-scrolled the before-and-afters, and maybe even recruited your dad for “a quick paint job” that’s already turned into three weekends and a strained hamstring.

But before you swing that sledgehammer (or hire someone who will), it’s important to know this:

Initio’s house flip insurance is for light, cosmetic renovations only. If you’re planning structural changes, you’re going to need something stronger than paint, and a different type of insurance

Take our highly scientific quiz to find out whether your reno project is House Flip cover material – or heading straight into contract works territory.

1. You walk into your reno project. What’s your first thought?

A) “Needs a paint, new carpet, maybe swap out the taps.”
B) “Where’s the floor gone?”
C) “This’ll be nice… once it has walls again.”

2. The most powerful tool you’ll be using is:

A) A paintbrush or maybe a multitool if you’re feeling spicy.
B) A power saw, demolition gear, and a hard hat.
C) Your builder’s number on speed dial.

3. You can currently see:

A) A slightly dated 90s kitchen.
B) Sunlight coming through the roof… and the floor.
C) Straight through the house from the front door to the back wall.

4. Would you sleep overnight in the house right now?

A) Yep, just need to bring a mattress.
B) Only if I had a tent.
C) Not unless you paid me and provided a hazmat suit.

5. What’s your builder mate’s reaction when you show them the place?

A) “Easy weekend job, bro.”
B) “Oof… brave.”
C) “This isn’t a reno, it’s an archaeological dig.”

Your results:

Mostly A’s – You’re flipping, not flattening.

✅ You’re doing surface-level, cosmetic renos. That’s exactly what initio’s House Flip cover is for. Paint away.

Mostly B’s or C’s – Sorry, you’ve crossed into structural territory.

🚧 This is no longer a ‘flip’ – it’s a major rebuild, and you’ll need contract works insurance to protect your property properly. Check out our mates at Builtin for that.

Now that you know where you stand…

If you have a home ripe for a bit of a quick freshen-up that’s;

• currently liveable
• structurally sound
• no major unrepaired damage
• no significant outstanding maintenance
• no weathertightness issues

Then it’s likely we can provide cover under Initio’s House Flip policy.  Here’s a quick refresher on what Initio’s House Flip policy does and doesn’t cover:

✅ Covered (short-term cosmetic renovations)

• Painting
• Carpet and flooring
• Replacing kitchens or bathrooms
• Removing non-load bearing walls
• Minor updates that leave the bones of the house alone
• A liveable home from the date of the policy inception, ie must have bathroom, kitchen and sleeping facilities

If your tools fit in a ute tray and your plans fit on a single A4 page, you’re probably sweet.

❌ Not covered (structural renovations)

• Re-roofing
• Extensions
• Recladding
• Replacing or removing load-bearing walls
• Work that requires building consent or council sign-off
• Long term projects

These need a contract works policy, because once you start touching the bones of the house or it’s raincoat, the risk profile changes completely.

We’re not just being picky. Insurance needs to match the level of risk, and a cosmetic tidy-up is a very different beast to a half-demolished house with no roof.

What about insurance while the work is being done?

If the reno is cosmetic only, our House Flip cover gives you short-term insurance for the period of renovation. It covers things like fire, theft, and liability while you’re on site giving the place a facelift.

But if there’s structural work involved, you’ll need to pair your house insurance with a contract works policy. We’ve teamed up with BuiltIn Insurance—NZ’s contract works experts—so you can get sorted online quickly, and keep everything under the same insurer umbrella (IAG).

House flipping is all fun and games until someone removes a load-bearing wall.

Get the right cover for the job – and if you’re still unsure, we’re just a call or click away.

Ready to get started?

Get a quote
Other relevant information

• When do I need contract works insurance?
• Are renovations or extensions to my home covered?
• House flip insurance
• What is covered by a house flip insurance policy?

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

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

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

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

Holiday home insurance specific cover:

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

Own home insurance specific cover:

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

What if you split your time equally between two homes?

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

Holiday home or rental?

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

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

Holiday Homes:

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

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

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

Own Homes (primary residence):

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

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

These terms can be reviewed upon request for special circumstances.

What if I only use the house for guests?

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

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

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

Are my personal contents covered under a holiday home policy? 

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

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

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

Key takeaways

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

USEFUL LINKS

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

 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

Many hosts rely on Airbnb’s well-advertised $1USD million of free Host Guarantee cover. But be warned, this can lull you into a false sense of security leaving many disappointed when they make a claim but find they don’t tick the boxes.

The rules are specific, which can make it hard to claim especially when innocent hosts unknowingly violate the conditions.

What does it cover?

The Airbnb Host Guarantee isn’t a formal insurance policy, but rather a strongly-worded promise to rectify guest damage providing your situation meets certain conditions.

It isn’t regulated by the New Zealand Financial Markets Authority, so you would struggle to take them to court locally if things really turn sour.

Last Resort for Recovery

In Airbnb’s own words they say the Host Guarantee is not an insurance policy, and shouldn’t be considered a replacement.

Firstly, the guarantee can only be claimed on after trying to recover compensation from the guest, and then your own insurance (if you have this). Already the Host Guarantee is a last resort.

For a chance of recovery from the guarantee, you’re going to have to prove you persistently chased up that festival-goer to get $800 back for a living room wall repair.

There are many examples of people angry about their payout from the guarantee. Usually it’s because they aren’t aware of the conditions.

A main stump is that damage needs to be inspected, reported and lodged to Airbnb within 14 days, or else you’re out of luck.

By the time you’ve checked in your next guest it could already be too late. This could be enough to kill any claim through the Guarantee if you live away from your Airbnb.

Remember that you need to seek recover from the guest, and then your insurance before you lodge a claim in the 14 day window. The requirements almost seem like a trap to get you to exceed the strict 14-day deadline.

Watch out for Exclusions

1. Only damage that happens during the booking period is covered. If an unwelcome guest overstays their welcome and causes damage, there won’t be cover.
2. Cover only applies to part of the house that’s in your listing. If you rent a room, but your guest uses another bathroom and causes damage, you’ll need to foot the plumber’s bill yourself.
3. It’s full of various exclusions; like damage from excessive water utility use (a sink overflow won’t be covered), and any damage by animals or pets (are you sure your guests won’t bring their dog?).
4. Be prepared for stacks of bureaucracy when you make a claim. Airbnb require extensive police reports, proof of ownership and request form documents for damage.

The list of exclusions goes on. To read the full terms, conditions and exclusions see here.

No Liability Insurance

Finally, the Host Guarantee doesn’t help when it comes to legal liability. If your guest suffers an injury and they sue you, the Host Guarantee will fall seriously short.

The idea of someone stubbing their toe on the coffee table and suing might seem ridiculous, but legal liability also extends to things like sickness (if an illness is caused by the condition of your house) or freak accidents.

Is it worth the Risk?

One-in-seven Kiwi Airbnb hosts report damage. That’s about a 15% chance you’ll suffer damage one-day.

While most reports are minor and hosts voluntarily pay to avoid the lengthy resolution process, we’ve heard some shocking stories ranging from vomit-covered walls to 100-person guest parties.

Hosts should ask themselves if relying on the Guarantee is worth the risk? After all, Airbnb themselves recommend having robust insurance in place in the first instance.

Learn more today about our specialist short-term guest cover.

Initio Insurance are the pioneers of online house insurance in New Zealand, with cover specifically designed for own homes and holiday homes also rented on Airbnb.

Related articles:

• Holiday home insurance basics
• Holiday homes that are rented to short-term guests
• Can I insure my home that is rented to guests?

If you’re lucky enough to own a holiday home, you’ll want to make sure you’ve got the best insurance protection, especially considering you’ll not always be there in person to look after it. Whether you keep it for personal use or decide to rent it out to short term guests – we’ve got you covered.

Standard house insurance requires someone to be living at the home for more than 60 consecutive days. If it’s vacant for longer than this, it’s considered a holiday home. Because a holiday home isn’t your primary residence there are more risks involved, for example; the property may be empty for long periods of time, increasing its chances of break-ins. 

What are my obligations?

We expect holiday houses to be empty more often, so our conditions are a little more lenient, but we do require:

• You or your family stay at the holiday house at least once a year
• The house is inspected (inside and outside) by you or a nominated person at least every 60 days 
• The home and its grounds are maintained 
• Mail is cleared regularly 
• Water supply is turned off 
• All doors and windows are secured when the home is vacant.

If you can’t meet these conditions, then a standard $5,000 excess will apply to your policy. Alternatively, if it’s fitted with a professional alarm* this will reduce to $1,000 when you claim for a break-in or burglary.

* Systems which include surveillance cameras only do not meet this criteria – the system needs the ability to provide an external alert (audible or direct to a monitoring company)

How do I get holiday home cover?

It’s as simple as selecting holiday home as the property type when you generate your instant quote. Alternatively, if you are changing your current home into a holiday home, all you need to do is change your cover in the property type drop down menu. The monthly costs will automatically update and will take effect as soon as you confirm the change online. 

Holiday home or rental insurance?

The main difference between holiday homes and year round short term rentals is how often they are rented out. We have multiple options available depending on how frequently you rent your house out – just select the right option in the dropdown menu and initio’s clever software will do the rest. If you’re not sure which is the best cover for you, get in touch anytime. We’re here to help.

At initio, we offer comprehensive protection for your bach or holiday home, with flexible cover if you also rent to guests. Learn more: https://initio.co.nz/holiday-home-insurance/

This guide is intended to be a quick reference to vacant houses. We recommend reading the full policy wording for the full details of your holiday home coverage.

Useful articles:

• Own home or holiday home insurance – which is the right option for you?
• Holiday Home insurance
• Should you reply on the Airbnb host guarantee?

What can be insured under our Multi Unit Rental Policy?

At initio we have a multi-unit rental policy which was designed to insure a block of flats owned by a single landlord.  For the purposes of this policy, a Multi-Unit Rental Property is defined as;

• two or more units, townhouses or flats that are combined under one building, so connected under the same roof or are physically connected in some other way (e.g. car-port or deck) and
• with each unit being self contained and
• having the same owner and
• on a standard long-term residential lease

Some examples of multi-units that we can insure under this policy are;

• a two story house where each level has a separate tenancy
• a block of flats owned by one person/entity – up to 8 units
• cross lease units, connected by a carport
• duplex townhouses
• rental house with physically attached self contained studio / granny flat – also rented out

There are some limitations as to what the multi unit properties we can insure.

• We cannot insure more than 8 units.
• We cannot insure properties that are more than 3 stories.
• The tenancies must not be short term or holiday lets.
• The property must be residential use only.
• We cannot insure individual or multiple units that form part of a body corporate.
• We cannot insure more than one rental unit at different addresses under this policy.

Related Articles:

• What are my obligations as a landlord?
• Landlord insurance fundamentals
• Guide to landlord insurance
• What is landlord insurance?
• Landlord insurance for multiple rentals

Initio’s landlord insurance policy requires landlords to meet the ‘Landlord Obligations’ for cover under the Landlord Protection and Meth Contamination extensions. The cover in these extensions are:

Landlord’s Protection

1. Malicious damage by tenants, and associated loss of rents.
2. Theft by tenants.
3. Loss of Rent following a tenant vacating the property.
4. Loss of Rent following a tenant eviction for non-payment of rent.
5. Meth Contamination, and associated loss of rents.

If a landlord has a property manager, it is usually the property manager’s responsibility to meet the obligations. Otherwise, the landlord will need to meet these themselves.

If you don’t meet the Landlord’s Obligations all the standard cover included in the policy remains in place. You are still covered for natural disasters such as an earthquake as this does not involve the risk of the tenant. However, if you do NOT meet the obligations but then lodge a claim for meth contamination at your property, your claim may be declined.

Landlord’s Obligations

You, or the person who manages the tenancy on your behalf, must:

1. Exercise reasonable care in the selection of the tenant(s) by at least obtaining satisfactory identification and written or verbal references for each adult tenant and when a reasonable landlord would consider it appropriate also check their credit and Tenancy Tribunal history.
2. Keep written records of pre-tenancy checks conducted for each adult tenant, and provide to us a copy of these if we request it.
3. Collect a total of 3 weeks’ rent in any combination of rent in advance and bond that will be registered with Tenancy Services.
4. Complete an internal and external inspection of the home at a minimum of 3-monthly intervals at the relevant residential dwelling upon every change of tenant(s).
5. Keep photographs and a written record of the outcome of each inspection, and provide us a copy of these if we request it.
6. Monitor rents on a weekly basis with written notification being sent to the tenant(s) whenever rent is 14 days in arrears, together with a personal visit to determine if the tenant(s) remains in residence.
7. Make application to the Tenancy Tribunal for vacant possession in accordance with the provisions of the Residential Tenancies Act 1986 if:
        (a) the rent is 21 days in arrears, or
        (b) you become aware of any illegal activity by the occupant(s) at the home, or
        (c) intentional damage to the home is caused by the occupant(s).

What if the home is occupied by employees as part of their employment package?

If the home is provided to and occupied by your employee as part of their employment package with you, then obligations 3, 6. and 7.(a) do not apply.

What if this is my holiday home which is occasionally let to short term paying guests?

If the home is occupied by short-term paying guests such as a AirBnB or BookaBach, then the obligations do not apply to have cover for damage and theft by guests. 

What if the home is occupied by Family Members?

You would need to decide if a Landlord policy is the right product for you.  Are you wanting to cover Loss of Rents and Intentional Damage by Tenants?  Does the family member pay rent? Get in touch with our support team to discuss the available options.

Protect your rental with initio’s landlord insurance

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Related Articles:

• Loss of rent FAQs for landlords
• What does landlord insurance cover?
• How to claim for intentional damage by tenants
• How property use affects your cover
• Are you thinking of renting our your home and becoming a landlord?
• Can I complete remote property inspections?

At initio, we’re all about providing clear and simple insurance solutions that fit your needs. However, there are a few types of insurance we don’t handle. Here’s a quick rundown of what we don’t currently cover, so you know exactly where we stand.

Stand-alone contents 

We understand that protecting your belongings is crucial. However, initio currently does not offer stand-alone contents insurance. Contents insurance is only available as an add-on to a home insurance policy for the same address as the insured property. If you are renting and only need to insure your contents, initio does not have an option for you at this time.  If you would like a quote for contents cover for your existing home insured with us, please view the add-on option/quote by logging into your initio dashboard and using the ‘change’ options.

Life products such as Life Insurance, Income Protection and Mortgagee Protection 

We do not offer life or income protection insurance. Life insurance ensures your loved ones are financially supported in the event of your passing, covering expenses like funeral costs and living expenses. Income protection insurance provides a regular income if you can’t work due to illness or injury, helping cover essential living costs. For these needs, we recommend consulting with specialised providers to get the comprehensive cover and peace of mind you deserve.

Travel 

Planning a trip can be exciting, but it also comes with its own set of risks. Unfortunately, initio does not offer travel insurance. This means we do not cover trip cancellations, lost luggage, or travel-related disruptions. For these specific needs, we recommend looking into specialised travel insurance providers who can offer you the necessary peace of mind for your journeys.

Medical 

Health and well-being are paramount, but initio does not provide medical insurance. Whether you need coverage for regular check-ups, emergency medical care, or long-term health treatments, you will need to find a dedicated health insurance provider. Our focus remains on property and vehicle insurance, ensuring that your primary assets are well protected.

Homes in transit

Moving homes can be a stressful experience, and ensuring your belongings are covered during the move is important. Unfortunately, initio does not offer insurance specifically for homes in transit. This means we do not cover any damage or loss that might occur while your belongings are being moved from one property to another. For coverage during your move, you will need to explore options with specialised moving insurance providers or seek transit cover from a broader insurance policy that includes this specific protection.

Contract works 

We don’t have a product at into for contract works.  If you’re renovating and making any structural alterations to your property, a standard house insurance policy won’t cover construction-related losses. For this, you need a Contract Works policy. This specialised insurance covers both the work being done and your home against construction-related losses. This can include issues like water damage from exposed cladding or structural damage caused by the renovations.

To make this easy for you, we’ve partnered with Builtin to offer the perfect Contract Works insurance solution. With Builtin, you can ensure that your renovation project is fully protected.

Body corporates

We cannot insure properties that are owned under a Body Corporate. Our cover is designed for domestic residential houses that have a single owner. Under a Body Corporate, there is a manager that collectively is responsible for insuring all the units on behalf of each owner. This is common where there’s a large number of living units, such as an apartment block.

Commercial/Business

We don’t provide commercial insurance at this time. Our primary focus is on landlords and homeowners, ensuring your residential properties are covered with the best possible policies. Commercial or business insurance is designed to protect businesses from a variety of risks. This type of insurance typically includes coverage for property damage, liability, and employee-related risks. It can protect against losses from events such as fires, theft, and lawsuits, and can also include specialised coverage like business interruption insurance, which helps cover lost income if your business is temporarily unable to operate. For business insurance needs, we recommend seeking specialised providers to get the tailored coverage your business requires.

Vacant Lots/Land or Lots/Land with only an Outbuilding

We only insure homes you can actually live in — so if it’s just a patch of grass, a shed (or a future dream build), we can’t provide cover until there’s a house on it.

Pet Health Insurance 

While we love pets as much as you do, we don’t offer pet insurance. We recommend checking with providers who specialise in this area to find the best cover for your furry friends. We do, however, cover damage caused to your property by pets.

Motorcycles, caravans, tractors and classic cars 

Generally speaking, motor vehicles (including quad bikes, motorbikes, and tractors) aren’t covered under your initio contents insurance. The only exception is for small, domestic-use vehicles listed in the policy definition of contents, such as electric wheelchairs, mobility scooters, golf carts, or children’s motorbikes under 50cc that are used only off-road. If you want cover for larger or road-legal vehicles like quad bikes, motorbikes, or tractors, you’ll need to arrange a separate motor vehicle insurance policy with a specialist provider, as this isn’t something initio offers.

Boats, jet skis, and other watercraft

Our cover doesn’t extend to boats, jet skis, or other types of powered watercraft. These fall outside the definition of household contents and need their own specialist cover. If you own watercraft, you’ll need to arrange a separate policy designed for marine risks, as they aren’t included under your home, landlord, or holiday home contents insurance.

Why these limitations?

Our goal is to offer you the most effective and straightforward insurance solutions. By focusing on specific areas, we ensure that our policies are comprehensive, easy to understand, and tailored to your needs. We believe that doing a few things exceptionally well is better than spreading ourselves too thin.

What we DO cover

For pretty much everything else, we’ve got you covered! We provide a wide range of insurance options to keep you protected. If you’re not sure which is the best cover for your situation, we recommend you visit our ‘help me choose’ page. Here’s a simple breakdown of our current insurance options:

• Home and contents
• Landlord
• Holiday homes
• Multi-unit rentals
• Own home, sometimes rented out
• Two dwellings on the same property
• House flip
• Vehicle insurance (only available to current policy-holders)

What we do best

We pride ourselves on providing excellent cover for your property. Our policies are designed to be simple, effective, and hassle-free. We’re always here to help you find the best solution for your insurance needs.

If you have any questions or need further clarification about what we cover, feel free to reach out. We’re here to help!

Final thoughts

While we do cover a whole heap of things, here are a few others we also don’t cover, just in case you were wondering:

• Pet dragons – Sorry, your fire-breathing friend is a bit too hot to handle.
• Alien abductions – We haven’t quite figured out how to insure intergalactic incidents yet.
• Time travel mishaps – If your time machine breaks down in 2050, you’re on your own!
• Unicorn stables – Magical creature houses aren’t covered, but we admire your imagination.

If none of this applies to you…

Great! You’re probably exactly the kind of property owner we can cover. Getting a quote takes just a minute, and there’s no paperwork or waiting.

Get a quote

• What is initio and how does it work?
• Initio’s policy wordings
• Technology you can trust
• How do I add contents insurance to my policy?

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

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

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

Does house insurance cover your home office?

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

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

When you need Commercial Insurance;

For your Home

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

For your contents

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

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

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

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

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

Your liability

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

Case-by-case

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

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

Useful links

• Things we don’t cover at initio
• What kind of insurance does initio cover?
• Help me choose my insurance
• How property use affects your cover

This guide answers common questions about landlord insurance, tenants, and property use — including how family arrangements or business activities can change your cover.

Do I need to notify you when my tenants change?

You don’t need to notify us every time a new tenant moves in. But to stay covered under your landlord insurance, you must meet the landlord obligations:

• Choose tenants carefully
• Keep records of pre-tenancy checks
• Complete inspections at least every 3 months, and at every change of tenants (with written records and photos kept on file)

You can review these in more detail on our landlord obligations guide.

“Tools like myRent can help with tenant checks, tenancy agreements, and ongoing property management — it’s a handy way to stay organised and meet your landlord obligations.”

If the change involves a different type of tenancy – for example, switching to short-term guests or another arrangement that could affect your cover – please let us know so we can check you’re on the right policy wording. You can also compare our options on the ‘help me choose’ page

My family member ‘rents’ the house – what kind of policy do I need? 

If a family member lives in the home and pays rent under a tenancy agreement, you’ll usually need landlord insurance. This gives you cover for things like loss of rent or intentional damage by tenants. Read more on our landlord insurance page.

If it’s a second dwelling on your property that a family member lives in permanently and you don’t want/need specific landlord benefits such as loss of rents , this usually requires a separate own home policy for each dwelling. More details are here: second dwelling – family lives in it.

Examples:

• Your brother pays rent and you want to cover that rent income → landlord insurance
• Your parents live in a granny flat rent-free → own home insurance

What if my tenant wants to run a business from my rental?

Your tenant is responsible for arranging their own commercial insurance to cover their business activities. This is separate from your landlord insurance and not something we provide. See our guide: When do I need commercial insurance? 

If the business changes the way the property is used (for example, a salon, office, or childcare), it could affect whether we can provide cover.  Get in touch with us if you’re unsure – we’ll be happy to review your situation with you. 

Ready to make the switch to initio? Start with a quote

Related articles

• When do you need commercial insurance?
• Landlord obligations
• Have a second dwelling that your family lives in?
• Help me choose the right insurance
• Landlord insurance for multiple rentals

Any rental property under our landlord insurance cover automatically includes loss of rent protection. This can also be included in our holiday home cover if you also rent your bach to guests.

There are two different scenarios where this cover applies.

a) Damage to the property

Loss of rent applies when something causes damage that means the house can no longer be lived in.

For example a flood soaks the carpets and your tenants need to move out. The tenants will not pay you rent while they’ve moved out and the repairs are done. This is where your loss of rent cover comes in to make up for the temporary shortfall in rent.

How much cover do I get?

$20,000 loss of rent comes as standard. There are options to increase this to $40,000 or $80,000 if you want more cover.

Loss of rent payments end once repairs are done and the property can be rented again. The maximum payout will be the cover limit you choose, or 12 months of rent, whichever comes first.

b) Tenant is evicted, or abandons your property

We’ll also cover rent in some scenarios where there hasn’t been physical damage to the house. Landlord’s Protection in our landlord insurance cover will help cover the shortfall in rent when your tenant is evicted for not paying rent, or if they leave without notice and stop paying rent.

6 weeks loss of rent – tenant eviction for non-payment

Tenants can be evicted through the Tenancy Tribunal when they’re over 21 days in rent arrears. Loss of rents are paid following the eviction, or until you find a new tenant. Overdue rent (arrears) isn’t covered, only the period following the eviction until you’re receiving rents again, up to the 6 weeks benefit limit.

To have this cover, make sure you’re meeting our landlord obligations. Your selected property excess applies to this benefit.

6 weeks loss of rent – tenant vacating without notice

Landlords can have unexpected shortfalls when tenants decide to leave their property and stop paying rent. If this happens without the tenants giving you the required notice we will pay the lost rent for up to six weeks, or until you find a new tenant (whichever comes first).

To have this cover, make sure you’re meeting our landlord obligations. Your selected property excess applies to this benefit.

Holiday homes rentals (e.g. AirBnb, BookaBach)

Under our Holiday Home cover there’s also loss of rent protection if you rent to paying guests.

12 months rent or up to the limit you select

You automatically have $20,000 of cover, with options to increase.

The rental income you receive from short-term guests isn’t usually the same and can vary each week. If the property is uninhabitable because of claimable damage, we’ll cover the lost rent based on the bookings you have to cancel. We can consider the lost rental income from expected future bookings; we might need to use your rental income from previous periods.

The 6-week tenant eviction or vacation without notice benefit doesn’t apply to a holiday home as guests do not have a formal tenancy agreement.

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

To be self-contained a premises must contain the facilities necessary for day-to-day living on an indefinite basis. There must be somewhere:

• to cook;
• to sleep;
• to live;
• to wash; and
• to carry out ablutions.

The facilities needed to live in a self-contained manner do not have to be in one building, but must be for the exclusive use of the dwelling.

For example, a property may have an external ablutions building in the grounds. As the whole property has the facilities to enable the people using the house to live in a self-contained manner, and the facilities are not shared with other homes, this property will be self-contained for EQC cover purposes.

A typical home or landlord policy is designed to cover one self-contained unit being used as a dwelling either by the owner or a long term tenant (over 90 days).  If you have a second self contained area at the property also used as a home, you may need a second policy, please check out our support page here to assist with determining the correct cover for you.

Related articles:

• Insuring your home with an attached flat
• Can you insure a rental property and attached unit under one policy?
• Can you insure a tiny home with initio?