Why insurance is non-negotiable
Smart Moves. Part I
Welcome to Smart moves: Insurance insights for property investors – a straight-talking series built from an in-depth interview with seasoned investor Graeme Fowler.
With decades of experience and a sizable rental portfolio under his belt, Graeme shares how he approaches insurance as a key part of successful property investing. From managing risk to avoiding costly mistakes, each article offers practical, no-fluff advice for landlords who want to protect what they’ve built.
The first article in the series explores why insurance isn’t just a checkbox – it’s a must-have for every property investor, no matter the size of their portfolio.
Why do you think insurance is essential for rental properties?
“Insurance is a must-have. I’ve been investing in property for years, and over that time, I’ve had to make a handful of serious claims, usually for accidental fires. A couple of those meant tenants had to move out for months. Without insurance, the financial hit would’ve been huge.”
Graeme says he always makes sure each of his rental properties is covered with a standard insurance policy. While some landlords opt to include extras in their cover, it’s not something he prioritises.
From initio: All our rental property policies come with full replacement cover for sudden and accidental damage, along with automatic protection for things that many other providers charge extra for. What does this include? Loss of rent, methamphetamine contamination, and liability is part of our landlord insurance automatically.. It’s all included as standard – no add-ons, no need to build your cover piece by piece. Just smart, all-in-one protection that actually reflects how landlords use their properties.
What have you learned from making claims?
“Things can go wrong every few years, and when they do, it’s usually not minor. The biggest issue I’ve had was a fire that forced the tenants out for quite a while. That’s not something you want to try to absorb out of pocket.”
Graeme says it’s important to treat insurance as protection, not just another expense. His advice to newer landlords: “Don’t assume you’ll never need it. Sooner or later, you will.”
From initio: We’re here to protect what matters – because when things go wrong, they can go really wrong. We’ve seen too many Kiwis caught out without the right cover (or any cover at all), left to absorb huge costs on their own. That’s where we come in. You pay us to take on that risk, so you’re not left footing the bill when disaster strikes. Whether it’s fire, flood, or the unexpected, we step in when it counts. That’s the whole point of insurance, and why getting it right from the start matters.
“I always choose the highest excess I can, usually around $2,000. That keeps my premiums lower. But if you only own a couple of properties, a lower excess might be the safer choice.”
Graeme also avoids monthly payment plans.
“I always pay annually as it tends to be cheaper in the long run. And if I know the earthquake levy’s going up, I’ll renew early and lock in the lower rates. That’s saved me thousands across my portfolio.”
From initio: Our quick quote tool puts you in control. You can clearly see the full cost of your insurance, broken down by annual and monthly payment options, before you commit. Want to tweak your excess or add contents cover? The quote updates instantly, so you can find the right balance for your needs and budget. It’s clever, fast, and designed to make complicated insurance simple.
Do you add extras, like loss of rent cover?
“Only if it’s already included. I don’t usually add it as an optional extra.”
From initio: Our cover is comprehensive from the get-go – we include the things that matter, without charging extra for them. Other providers might treat them as add-ons, but with initio, they’re built in.
Do location risks change how you invest?
“Not really. Natural disasters can strike anywhere. Cyclone Gabrielle caused damage to thousands of homes, but none of mine were affected. That’s just luck.”
Graeme says trying to pick a “safe” region isn’t always practical. “Instead of worrying about where it’s going to happen next, I just make sure I’m covered if it does.”
From initio: Our quick quote tool includes hazard indicators like earthquake and flood risk, so you can go in with eyes open. It draws on trusted data sources to reflect your property’s actual risk. And if something does need a closer look, our team will review it quickly, so your cover is based on expert judgement, not guesswork.
What are the most common insurance mistakes you see landlords make?
“Paying monthly when they could save by paying annually. Choosing a really low excess and then getting stung with higher premiums. And not doing regular inspections – big mistake.”
He recommends inspections every three months, minimum. “That way, if anything does go wrong, you’ve got a clear paper trail and fewer hassles at claim time.”
From initio: Knowing what’s covered under your landlord insurance can save confusion if you ever need to claim. This support article explains the key parts of your cover, so you know exactly what to expect.
Would you ever self-insure?
“Never. Even if I owned 500 houses and didn’t owe the bank a cent, I wouldn’t go without insurance. One fire, one flood, one quake – that’s all it takes.”
Graeme sees insurance as a safety net. “You work too hard to build a portfolio to risk losing it overnight.”
Final thoughts
For Graeme, the value of insurance is simple: it’s peace of mind.
“It’s not about whether something might happen. It’s about being prepared for when it does.”
Coming up next in the Smart Moves Series:
Getting smarter with excess, premiums and payments – how to optimise your insurance spend without cutting corners.
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:
- Guide to landlord insurance
- Learn more about Fire & emergency levies (external link)
- Learn more about NHC levies (external link)