Holiday Home & AirBnB Insurance
Our guide explains everything you need to know to get the best policy at the lowest price while protecting yourself from common risks.
Updated 9 June 2024
Summary
We review policies from several well-known insurers, and compare them side by side. Our Holiday Home and Airbnb Property quotes LINK show the most attractive policies for example properties in major areas popular with holiday homes and/or Airbnb rentals. This includes - Auckland, Hamilton, Tauranga, Wellington, Upper Hutt, Lower Hutt, Wellington, Lower Hutt, Nelson, Christchurch and Dunedin.
Useful resource: We've compared house insurance policies side-by-side to make it easier to see where you're covered, and where you're not. Download our policy comparison table in XLS (Google Sheets).
- Holiday Home and AirBnB insurance renewals are going up and up. This is because of increased risk, an increase in the EQC (earthquake) levy, increased building costs, higher risks of natural disasters and increased crime which causes property damage. Our guide to average home insurance costs confirms significant increases and this RNZ story in August 2023 explained "it's as bad as it ever has been to be an insurance buyer" given these costs.
- Owning a holiday home or Airbnb property is a valuable investment, and having comprehensive insurance is crucial to protect against unexpected events. This guide explains the essential aspects of insuring your holiday rental property.
- Holiday home insurance offers full house replacement coverage, ensuring your property can be rebuilt or repaired up to its replacement value. Leading policies include additional benefits like covering for gradual water damage, replacing keys and locks, and unblocking underground pipes, which limits out-of-pocket expenses for unexpected events.
- If you rent your home on Airbnb or to other guests, leading holiday home policies cover accidental and malicious damage by guests, meth manufacturing, and loss of rental income if your property becomes uninhabitable.
- However, there can be requirements that you occasionally use the property throughout the year, so it's not always a 'set and forget' policy.
Before buying any policy, you must choose a sum insured that covers full demolition and rebuild costs. Our rebuild calculator LINK has more information. - This guide has been published to explain all the necessary information to effectively insure your holiday home or Airbnb property, providing peace of mind and protection for your investment. We cover:
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We review policies from several well-known insurers, and compare them side by side. Our Holiday Home and Airbnb Property quotes LINK show the most attractive policies for example properties in major areas popular with holiday homes and/or Airbnb rentals. This includes - Auckland, Hamilton, Tauranga, Wellington, Upper Hutt, Lower Hutt, Wellington, Lower Hutt, Nelson, Christchurch and Dunedin.
- Significant savings can be found by following simple tips, including having an accurate sum-insured amount and an appropriate excess.
Useful resource: We've compared house insurance policies side-by-side to make it easier to see where you're covered, and where you're not. Download our policy comparison table in XLS (Google Sheets).
Know this: Why house insurance increasing
- Many homeowners in certain parts of New Zealand have seen significant changes in their house insurance policies. While both Earthquake Commission (EQC) and Fire Service levies have increased, this is not causing the reported cases of some policy renewal costs doubling
- The reason is primarily the risk and occurrence of earthquakes, floods, cyclones, coastal damage and crime. Tower Insurance and AIG (which owns AMI, NZI and State) introduced 'full risk-based pricing' back in mid-2018. This means that insurers now don't 'share' the risk with less-risky policyholders. Instead, if you own a house in an area with a higher risk of earthquakes, you will pay more for insurance.
- 2023 has been claim-heavy with floods and cyclone damage throughout highly populated parts of the North Island. If you are in a troubled area (including Christchurch, flooded Auckland suburbs, Kaikoura or Wellington), this may mean insurance is more difficult to obtain and expensive, as outlined by our sample quotes guide and media reports.
To help you compare and make an informed decision, this guide covers:
Related resources: Our trusted go-to guides for Insuring an Old House and Difficult Areas for House Insurance explain what you need to know should either of these issues apply to you.
Advertising Disclaimer: MoneyHub may earn a referral bonus for anyone that’s approved through some of the below links. Our research and findings are independent of any bank, credit card issuer, or product manufacturer/service provider, and have not been endorsed by any of these entities. Please see our Advertising Policy for more details about how we make money.
- Compare House Insurance Quotes New Zealand-wide
- House Insurance Must-Know Facts
- Suburbs and Areas of New Zealand Where it's Difficult to Insure Homes (and Ensuring a Home is Insurable)
- Frequently Asked Questions
- Ready to Buy House Insurance?
- How to Make a Claim on Your House Insurance
- Why Does House Insurance Cost What it Does?
Related resources: Our trusted go-to guides for Insuring an Old House and Difficult Areas for House Insurance explain what you need to know should either of these issues apply to you.
Advertising Disclaimer: MoneyHub may earn a referral bonus for anyone that’s approved through some of the below links. Our research and findings are independent of any bank, credit card issuer, or product manufacturer/service provider, and have not been endorsed by any of these entities. Please see our Advertising Policy for more details about how we make money.
Are you looking for contents insurance, or insurance for an investment property?
How Much Should I Insure My House For?
In the video below, MoneyHub Founder Christopher Walsh explains how house insurance calculators work and why you must ensure you have enough coverage every time you renew or switch insurers:
- This guide is not for you - visit our contents insurance guide or landlord insurance guide.
- If you are looking to estimate the rebuild cost of your home or an investment property, our house insurance calculator explains everything you need to know.
How Much Should I Insure My House For?
In the video below, MoneyHub Founder Christopher Walsh explains how house insurance calculators work and why you must ensure you have enough coverage every time you renew or switch insurers:
Compare House Insurance Quotes New Zealand-Wide
- Well known insurers such as AA Insurance, AMI, AMP, Initio, State, Trade Me and Tower all sell house insurance.
- Each policy referenced below is "home only", no contents are included. The quotes are for a single-story, brick and tile roof property with a sum insured value of $700,000
- We obtained quotes for nine properties in locations all over New Zealand.
- We've compared house insurance policies side-by-side to make it easier to see where you're covered, and where you're not. Download our policy comparison table in XLS (Google Sheets).
Property specifics:
- Owner-occupied
- Policy holder age = 41 years
- Free standing home, concrete slab foundations, built 1980
- Flat/gentle slope of land
- 1 Story
- Standard construction
- No previous claims in the last three years
- Double brick exterior with terracotta tiles
- Floor area of 180 metres squared
- Standard security with a monitored burglar alarm
- Four bedroom, one bathroom, one deck, one kitchen and a two car garage
Disclaimer: Specific House Insurance policies and their terms and conditions differ between insurers. We make no representation that the quotes below imply that the policies are the same in form and substance. Please review policies in detail before making any decision.
Auckland Home Insurance Price Comparison - June 2024
Location |
Initio Excess: $400 |
Tower Excess: $500 |
AA Insurance Excess: $500 |
AMP Excess: $500 |
AMI Excess: $500 |
State Excess: $550 |
TradeMe Excess: $500 |
Takapuna |
$2,088.75 |
$2,307.39 |
$2,124.81 |
$1,944.64 |
$2,524.51 |
- |
$2,634.44 |
Mt Wellington |
$2,088.75 |
$2,105.52 |
$1,908.38 |
$1,985.57 |
$2,423.41 |
$2,222.8 |
$2,392.55 |
Mangere |
$2,088.75 |
$2,192.36 |
$1,924.17 |
- |
$2,579.67 |
$2,347.06 |
$2,183.96 |
Waikato Home Insurance Price Comparison - June 2024
Wellington Home Insurance Price Comparison - June 2024
South Island Home Insurance Price Comparison - June 2024
Location |
Initio Excess: $400 |
Tower Excess: $500 |
AA Insurance Excess: $500 |
AMP Excess: $500 |
AMI Excess: $500 |
TradeMe Excess: $500 |
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Christchurch |
$2,802.24 |
$3,336.13 |
- |
- |
- |
- |
$3,803.68 |
Nelson |
$2,292.34 |
$3,075.85 |
$3,085.59 |
$2,034.76 |
$3,055.65 |
$2,800.33 |
$3,550.96 |
Dunedin |
$2,088.75 |
$2,402.04 |
$2,388.23 |
$1,951.21 |
$2,277.99 |
$2,129.37 |
$2,748.19 |
Invercargill |
$2,088.75 |
$2,703.02 |
$2,865.88 |
- |
$2,431.28 |
$2,072.50 |
$3,105.80 |
Summary
- If you're serious about switching insurers, or want to negotiate a better deal with your existing one, compare compare compare. It's the only way to have any bargaining power when it comes to bringing down the cost of house insurance.
- If you live in Christchurch or the Wellington region, insurers will generally take longer to come back with a quote, but persist and compare, and if required, talk to an insurance broker specialises in house insurance
- We expect house insurance prices to change throughout 2024 and beyond as insurers charge natural disaster-prone areas more, (as announced in this Stuff.co.nz article) relative to low-risk areas. This means low-risk areas will pay relatively less, as is already being seen in the sample quotes above.
- Useful resource: We've compared house insurance policies side-by-side to make it easier to see where you're covered, and where you're not. Download our policy comparison table in XLS (Google Sheets).
Compare Policy Details
- We've compared house insurance policies side-by-side to make it easier to see where you're covered, and where you're not. Download our policy comparison table in XLS (Google Sheets).
- Disclaimer: This policy comparison is not intended to be financial or insurance advice. It is a summary of the various policy terms of coverage only. For full details of policy coverage, terms, benefits and exclusions please refer to the specifc policy wording document.
House Insurance Must-Know Facts
Know the seven ways to save on Holiday Home and AirBnB insurance
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Always check the policy's cover, terms and conditions carefully before signing upIt's important you understand the policy, what it covers and what it doesn't. If you are unsure, contact the insurer and ask them to explain it. Additionally, we suggest the following:
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Many factors affect what your policy costsThere are a number of factors which insurers take into account when pricing Holiday Home and AirBnB insurance:
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​Suburbs and Areas of New Zealand Where it's Difficult to Insure Holiday Home & AirBnB Properties
Our trusted go-to guides for Difficult Areas for House Insurance explains what you need to know should this issue apply to you. We have also published a guide to determining whether or not your property is an insurance risk. A summary is below:
Across New Zealand, there are now specific areas and regions where insuring homes isn't always straightforward, particularly when trying to secure coverage instantly online. Our research highlighted several regions and cities where getting home insurance is difficult. We list these and explain the reasons that contribute to the difficulty below:
Be Aware: Houses built before 1935 in Wellington, Christchurch, North Canterbury, and Marlborough: As a background, before 1935, New Zealand had no set of building standards, which means older homes, especially those constructed before 1935, may not have been built to the same structural standards as newer buildings. This makes them more vulnerable to damage from earthquakes and other natural disasters, and many insurers won't cover them, as first reported in this 2012 Stuff.co.nz article.
Know This: While the above regions are some of the most well-known areas with insurance complexities, hundreds of other pockets around the country present unique risk layers.
Across New Zealand, there are now specific areas and regions where insuring homes isn't always straightforward, particularly when trying to secure coverage instantly online. Our research highlighted several regions and cities where getting home insurance is difficult. We list these and explain the reasons that contribute to the difficulty below:
- Wellington: As the capital city located near major fault lines, Wellington faces significant seismic risks. The city's hilly terrain and coastal exposure also contribute to its susceptibility to landslides and tsunamis, which increase the already significant risk to home insurers. It can cost up to four times more to insure an identical house in Wellington as it does in Auckland.
- Porirua: Similar to Wellington, Porirua is located near active fault lines, making earthquake risk a primary concern. Its coastal areas are also prone to sea-level rise and storm surges.
- Lower Hutt & Upper Hutt: Being part of the wider Wellington region, these areas are also vulnerable to earthquakes. Moreover, river flooding due to the Hutt River poses an additional threat, especially during heavy rainfall.
- Marlborough Sounds: This region has intricate waterways, peninsulas, and islands. Its topography and relative isolation make accessibility a challenge, increasing the risk of delayed assistance during emergencies and unknown rebuilding costs. Add in coastal nature and flood risks, and it can be a problem to insure in general.
- Whangarei: Whangarei and some areas of Northland face risks associated with coastal hazards, including rising sea levels and storm surges. However the biggest risk concern are the slope severity hazards (landside and instability) that makes insuring houses on the outskirts of Whangarei sometimes difficult to insure. In addition its tropical climate also makes it susceptible to cyclones and intense rainfall.
- Westport: Houses in Westport township face heightened flood risks due to its precarious position between the Orowaiti Lagoon to the Buller River. Investment by Council in the local flood protection infrastructure is necessary before insurers will adjust their risk appetite here. The remoteness of the West Coast also poses access issues which insurers take into account.
- Hawkes Bay: Pockets of the Hawkes Bay including Eskdale, Wairoa and Fernhill recently suffered major flood damage. Many areas have been re-classified by Council. Houses throughout the Hawkes Bay have come under increased scrutiny by insurers when accepting new policies. The area also has a history of earthquakes and this is also a major factor in the assessment of risk.
- Christchurch's Eastern Suburbs: Southshore and New Brighton: The 2010 and 2011 Canterbury earthquakes left an indelible mark on Christchurch, with the eastern suburbs being some of the hardest-hit areas. The repercussions of these events have led to significant insurance challenges in regions like Southshore and New Brighton.
Be Aware: Houses built before 1935 in Wellington, Christchurch, North Canterbury, and Marlborough: As a background, before 1935, New Zealand had no set of building standards, which means older homes, especially those constructed before 1935, may not have been built to the same structural standards as newer buildings. This makes them more vulnerable to damage from earthquakes and other natural disasters, and many insurers won't cover them, as first reported in this 2012 Stuff.co.nz article.
Know This: While the above regions are some of the most well-known areas with insurance complexities, hundreds of other pockets around the country present unique risk layers.
Frequently Asked Questions
What is average house insurance cost in New Zealand?
There is no average price; every home is different - our research into average home prices is based on a specific rebuild price, and outlined in our research study. Throughout New Zealand, insurers vary their quotes based on the size of the home, location, age of home, materials used to build the home, section angle and many other factors. The best way to find the best house insurance deal is to compare by getting quotes directly with insurers.
What is the best Holiday Home & AirBnB insurance?
Our review of insurance quotes outlines the most common policies available in New Zealand, and sample costs.
What is covered by a Holiday Home & AirBnB insurance policy?
Holiday Home & AirBnB covers the cost of rebuilding or repairing your home if it is damaged or destroyed, as well as guest-specific benefits.
Commonly throughout New Zealand, most Holiday Home & AirBnB claims result from damage caused by:
Commonly throughout New Zealand, most Holiday Home & AirBnB claims result from damage caused by:
- An earthquake
- A fire
- A flood
- Vandalism
- Theft causing property damage (i.e. broken windows)
- Frozen and burst pipes
- Fallen trees
- Land subsidence (i.e. sea-facing properties)
How much insurance cover do I need for my house?
You need enough cover to pay for a complete rebuild. If disaster strikes and you don't have enough cover, you will have to pay for the difference between the cover and total rebuild cost yourself. Our House insurance calculator outlines exactly what you need to know to get an appropriate level of cover.
Is Holiday Home & AirBnB insurance a requirement?
No, unless you have a mortgage over your home (see below). Holiday Home & AirBnB insurance is however recommended given the number of natural disasters that put New Zealand under threat, as well as the risk of fire or flooding. Because a home is likely to be most New Zealand's biggest asset, protecting it should be a priority.
Is Holiday Home & AirBnB insurance included in a mortgage?
No - but many banks and mortgage brokers will try and sell Holiday Home & AirBnB insurance as part of the lending process. Our view is to shop around, as banks and mortgage brokers make plenty of commission from selling policies, which may not be the best available in the market.
No - house insurance is the responsibility of your landlord to protect the buildings. You can consider contents insurance, but this not required either.
Do you pay house insurance monthly or yearly?
Most insurers offer monthly, quarterly and annual payment options. Be aware that in some cases, paying monthly can mean you pay 10-15% more, which we believe is far too high.
​How will the excess affect the cost of my policy?
Each policy will be quoted with a compulsory excess, which many insurers let you adjust upwards or downwards before buying the policy. The excess is always outlined when you buy a policy, and generally, a higher excess will lower the cost of your insurance premium, and a lower excess will increase the cost of insurance. In our research, we found $500 was the most common standard excess.
When you select your excess, consider what you could afford tomorrow if disaster struck. If your limit was $500 or $750, a similar excess would be more appropriate than selecting a $1,500 or $2,500 excess, even if you pay more annually for a policy.
The video below shows how adjusting the excess can considerably change the price of the policy:
When you select your excess, consider what you could afford tomorrow if disaster struck. If your limit was $500 or $750, a similar excess would be more appropriate than selecting a $1,500 or $2,500 excess, even if you pay more annually for a policy.
The video below shows how adjusting the excess can considerably change the price of the policy:
Can you change your house insurance anytime?
Yes - if you move house you can cancel and be refunded any prepaid time on your policy. You can also increase or decrease your sum insured cover at any time; the insurer will re-calculate your policy cost based on the new amount.
The video below outlines the cancellation policies of popular insurers and their home and landlord policies:
The video below outlines the cancellation policies of popular insurers and their home and landlord policies:
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​Ready to Buy Holiday Home & AirBnB Insurance? Know How to Get the Best Deal
Once you’ve become familiar with the basics and have decided to purchase Holiday Home & AirBnB Insurance insurance, it’s time to get the best quote for what you need.
Get the best policy without becoming overwhelmed by the details:
Tip 1 – Read our Best Buy House Insurance policies below to get an idea of price and coverage
We have put together a number of house insurance quotes from AA Insurance, AMI, AMP, ANZ, Initio, State, Trade Me and Tower for a number of properties all over New Zealand. The purpose is to help everyday New Zealanders to understand the cover level and make it easier to pick the right policy while reducing the chance of overpaying for cover.
Tip 2 - Check your policy cover and excess
Make sure the policy quote offers the right level of cover, and consider what excess levels or extra coverage you are happy with. Generally, a higher excess coupled with lower coverage (in dollar terms) equals a cheaper quote, but it's essential to make sure the cover level is sufficient when buying house insurance (or any insurance for that matter).
Tip 3 – Lower the excess only if you are comfortable paying more for a policy cost
If you have the right level of cover, you can pay less for a policy by choosing to have a higher excess. However, it's important to make sure you can afford the excess if and when you need to make a claim.
Get the best policy without becoming overwhelmed by the details:
Tip 1 – Read our Best Buy House Insurance policies below to get an idea of price and coverage
We have put together a number of house insurance quotes from AA Insurance, AMI, AMP, ANZ, Initio, State, Trade Me and Tower for a number of properties all over New Zealand. The purpose is to help everyday New Zealanders to understand the cover level and make it easier to pick the right policy while reducing the chance of overpaying for cover.
Tip 2 - Check your policy cover and excess
Make sure the policy quote offers the right level of cover, and consider what excess levels or extra coverage you are happy with. Generally, a higher excess coupled with lower coverage (in dollar terms) equals a cheaper quote, but it's essential to make sure the cover level is sufficient when buying house insurance (or any insurance for that matter).
Tip 3 – Lower the excess only if you are comfortable paying more for a policy cost
If you have the right level of cover, you can pay less for a policy by choosing to have a higher excess. However, it's important to make sure you can afford the excess if and when you need to make a claim.
MoneyHub Founder Christopher Walsh Explains How Our Friends at Initio Offer Instant Quotes for Holiday Home & AirBnB Insurance Based on Your Address:
Christopher Walsh
MoneyHub Founder |
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Why Does Holiday Home & AirBnB Insurance Cost What it Does?
To help explain where your money goes when you pay for a policy, we've outlined a brief guide to demystifying your house insurance premium:
Insurers use the following factors, among others, to calculate your premium:
1. Location
2. Water supply and emergency services
3. Age of the property
4. Use of the property
5. Replacement value
6. Excess and extras
7. Government Levies
8. GST
- Insurance policies rely on wording that is often fraught with jargon, giving them a reputation for being both convoluted and confusing.
- Something as important as insuring your house should come with some certainty – so how do you demystify this? Many MoneyHub readers ask how their premium costs are calculated, and where the costs go.
- The premium cost is variable: a North Shore AirBnB property in Auckland, for example, will likely have a cheaper premium than an equivalent property in Christchurch due to earthquake risk. Based on the big data leading house insurance company Initio shared with us on their claims, many factors determine premiums – some of these things include relative exposure to weather events, flood zones, vulnerability to theft and the historical record of claims in the area.
Insurers use the following factors, among others, to calculate your premium:
1. Location
- An insurance premium is heavily dependent on the likelihood of earthquakes and storms, based on historical data.
- Almost every insurer has moved to risk-based pricing, meaning that low-risk places like Hamilton and Dunedin will no longer subsidise higher-risk regions such as Wellington.
2. Water supply and emergency services
- The closer a house is to a fire station, and the better the access a property has to water, the less likely it is to burn to the ground. A property 30 minutes out of town relying on rainwater tanks will attract a higher premium.
3. Age of the property
- This can affect premium pricing. For example, houses built before 1935 are more likely to have claims than those built afterwards because they are more likely to have corroding electrical wiring, old pipes that can’t cope with increased town water pressure, and original roofing more susceptible to storm damage.
4. Use of the property
- Data indicates that houses occupied by their owners have fewer losses than those occupied by tenants or short-term guests. A rental property attracts landlord risk (such as malicious damage and loss of rents) so a landlord insurance policy will always cost at least 20% more than the relatively insurance rating for an owner-occupied home.
- Holiday homes sit for longer periods of inoccupancy, which increases other risks such as unnoticed water damage, break-ins and burglary.
5. Replacement value
- The greater the insured value of a property, the higher the premium. The increase in premium isn’t linear – so a $1,500,000 rebuild value doesn’t attract double the insurance premium of a $750,000 rebuild.
- After a certain point, the cost of insurance increases at a decreasing rate, reflecting the fact that over 95% of insurers’ claims are for smaller loss (e.g. up to $10,000) not total losses requiring a complete rebuild.
6. Excess and extras
- An excess is the amount the property owner is willing to absorb at claim time. The more the owner is willing to pay, the lower the risk to the insurer – and the lower the premium cost.
- Extras that increase the premium are the additional covers the property owner adds, e.g. increasing loss of rents from $20,000 to $80,000 for a rental property, or adding nil excess glass cover.
7. Government Levies
- A government earthquake levy is added to the insurance cost of every residential property, to cover for natural disasters losses to dwellings and land up to $345,000, which increased from $172,500 in late 2022 per this EQC announcement.
- This is currently set at $552 per residential unit, the earthquake levy covers $345,000 of the loss. Anything over $345,000 is paid for by the insurance company. In this way, your insurer collects your EQC levy as part of your total insurance cost and passes them onto the Earthquake Commission.
- The second type of levy included in your premium is another fixed component cost: the Fire and Emergency Service Levy. This levy contributes toward the cost of running emergency services (fire brigade, ambulance service, etc.) of which residents of New Zealand collectively share the benefit.
- Like the earthquake levy, the fire levy is charged on each residential unit at a fixed rate as outlined on the EQC website. In the same way, your insurer collects the fire levy as part of your insurance premium and passes those funds onto the NZ Government. The levies are outlined on the Fire and Emergency Service's website,
- Unlike the EQC, if you choose not to have residential property insurance, you will still benefit from the fire and emergency services, even though you have not directly contributed to these services.
8. GST
- Like all domestic goods and services in New Zealand, a 15% GST tax is then applied to the total insurance cost (insurer premium, EQC levy, and Fire levy). This total becomes the cost of your insurance policy premium that is payable by you, the insurance customer.
- So for a house insurance premium of $1,200 including GST (which is common), around $670 of this amount pays the levies. Around $510 is left over, which, net of GST, is around $443. This is retained by the insurer to pay claims, reinsurance and staff and distribution costs.
Compare Holiday Home & AirBnB Insurance Quotes With Our Top Insurers
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