Compare House Insurance

Updated 19 March 2019

Summary of House Insurance

New Zealand has many natural hazards, or risks, including floods, earthquakes, and landslips. Some places are riskier to live than others, as they experience more natural hazards. In the past, insurers would price insurance 'equally' based on property size, regardless of its location. Now, insurers are facing higher costs to insure and are moving to price insurance specific to a property's location and history.
Because of recent events, house insurance costs continue to rise, and homeowners in Christchurch and Wellington in particular are facing difficulties in getting appropriate insurance for their home.
Our guide explains everything you need to know to get the best policy at the lowest price.
We have priced home-only insurance, and not included contents cover. We found even $25,000 of contents cover could increase some policies by 15% to 60%. Given house insurance's ongoing price rises, and how a number of New Zealanders are struggling to afford it (as reported in this Stuff article), our focus is on house-only.
We review 9 policies from 9 well-known insurers, and compare them side by side. Our best buys (LINK) shows the most attractive policies for example properties in major cities, including Auckland, Hamilton, Tauranga, Wellington and Christchurch. We have also reviewed quotes for holidays homes. (LINK)
Significant savings can be found by following simple tips, including having an accurate sum-insured amount and an appropriate excess.

Know this: Why house insurance increasing

Many homeowners in certain parts of New Zealand have seen significant changes in their home insurance policies. While both Earthquake Commission (EQC) and Fire Service levies have increased, this is not causing reported cases of policy costs doubling. The reason is primarily the risk of earthquakes. Tower Insurance and AIG (which owns AMI, NZI and State) introduced 'full risk-based pricing' 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.

If you are in Christchurch, Kaikoura or Wellington, this may mean insurance is more difficult to obtain and expensive. Media reports suggest this and MoneyHub's team are updating this page on a regular basis.

This guide covers:

House Insurance FAQs

Are you looking for contents insurance, or insurance for an investment property?
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.

Compare House Insurance - Our Best Buys

Well known insurers such as AA Insurance, AMI, AMP, ANZ, Inition, State, Trade Me, Tower and Westpac all sell house insurance.
Each policy referenced below is "home only", no contents are included.
We obtained quotes for eight example properties, and specify the cover and limitations of each policy in the sections below.
Our sample properties included ...........
For an easy-to-follow policy comparison between all house insurance providers, download our PDF Guide (LINK)

House Details	Auckland
Location & Postcode	North Shore 0630	Hamilton	Tauranga	Wellington/CHC?
Sum Insured	$600,000
Building type	Freestanding home
Wall material
Roof material
Year of construction
Home security
Construction standard
Slope of land
Levels of home
Number of bedrooms
Size of main bedroom
Number of bathrooms
Number of garages
Number of dwellings
Total Home Area Size	250 m2
Outbuildings and features?

10 House Insurance Must-Know Facts

A home insurance policy covers everything 'fixed' to your home and property

House insurance covers everything fixed to your property, so having the right level of cover is important, as is understanding the differences in policies.

Basic policies may only cover major events such as fire, theft or flood.
Comprehensive policies offer more protection and cover you for major events, accidental damage caused and other benefits such as alternative accommodation and cases of gradual damage. Our review of popular house insurance policies are all in the 'Comprehensive' category.
Insurers will pay a maximum of the 'sum insured' - having the right level of cover is important. If disaster strikes and the rebuild cost exceeds the sum insured, you will have to meet this cost.

Your home includes all of the following items which are owned by you:

Residential buildings, sheds, garages, carports, greenhouses, decks, verandahs, balconies, patios etc
Paths, paving, driveways, sports courts, fences, gates and free-standing garden walls
Letterboxes, exterior blinds and awnings, fixed clotheslines and built-in BBQs
Fixed water tanks, septic tanks and their systems, fixed or built-in swimming pools, spa pools and saunas and their systems
Solar panels
Internal or external appliances and fixtures that are permanently built-in, attached, plumbed into or wired into the building
Carpets and fixed floor coverings
Drains, pipes, gas lines, cables and poles
Aerials and satellite dishes that are attached to your home

Know what house insurance doesn't cover...

Acts of terrorism are not covered
Damage due to wear and tear is not covered
If your home is unoccupied for more than 30 or 60 consecutive days during the year, your cover may be limited and/or an extra excess will apply.
Damage by pets is rarely covered
Accidental damage may be covered, but there are often limits.
If you work from home, the legal liability cover probably won't apply to a claim that arose in your course of business.

We strongly suggest checking the small print carefully before you buy any policy.

If how you 'use' your house changes, it may be a 'change of circumstances' and the insurer will need to know

Insurers are constantly assessing their risk, and an event or decision you make may constitute a 'change in circumstance'. If this is the case, your insurance company may need to know. This can include:

If the use or occupation of your house or land at the situation changes to include any business use - for example, you start to see clients or work from home
If any structural alteration or addition is made to your house - for example, if you add an extension or permanent feature
If your house becomes tenanted or becomes a holiday home
If you, or any person who may occupy your house are charged with, or convicted of, or commit any criminal (offence other than traffic offences)

It is always smart to be on the same page as your insurer - if one of the above applies, a quick phone call will let you know where you stand. Be sure to take a note of the outcome and confirm it in an email to your insurer.

You’ll save the most by prepaying house insurance annually

Insurers love being paid upfront, so if you know your living situation won't change in 12 months, you can likely save 10%-20% by paying upfront. It may be a cash hit but it's free money by way of savings, and if you do cancel the policy later on the unused months are fully refundable.

Some policies allow situation changes, such as moving property, if you have prepaid for a year. In such instances, the insurer will usually either quote an additional amount to pay or issue a refund if the new premium is lower.

Many factors affect what your policy costs

There are a number of factors which insurers take into account when pricing house insurance. This includes home-specific and applicant-specific information:
Home-specific:

Your address and location: Wellington and Christchurch are particularly troublesome for house insurance. All insurers assess certain cities or areas to be riskier.
Sum insured: How much you insure your home for is a major factor - our house insurance calculator has more details
Whether you live in a house or an apartment: home insurance for apartments can be cheaper (but not always).
Use of home: Do you own and live in the home, or is it a holiday home?
Building type: Is it a freestanding home, unit or lifestyle block?
Wall and roof material: What the walls and roof is made of affects insurance premiums
Year of construction: The age of your home factors into the insurance quote
Home security: Do you have a burglar alarm, deadlocks and 24/7 monitoring by a security provider? If so, your insurance costs can be lower.
Construction standard: The 'quality' of your home also influences the policy cost
Slope of land: Is your home built on a flat piece of land, or is sloping?
The number of levels, bedrooms, bathrooms and garage/car spaces: all of these influence the policy cost
Number of dwellings: Is there a granny flat or self-contained unit on your property? If so, the insurance cost can be higher.
Outbuildings and features: If you have exterior buildings like garages and sheds, this can also influence the insurance cost.

Applicant-Specific

Your age - generally (but not always), the younger you are, the more expensive your policy - so a 25-year-old can pay more than someone who is 50.
If you have existing house insurance - insurers like to see a history of behaviour, so if you have had insurance before, some insurers offer lower quotes compared to someone taking out house insurance for the first time.
Your claims history - if you've been unlucky and submitted claims in the last few years, your premium may be higher

Get other quotes BEFORE you renew every year

Insurers, like many electricity companies and broadband providers, often offer the best deals to new customers. Loyal customers are punished with higher rates, which usually increase each year. Our guide to house insurance (LINK) has current prices for a range of sample properties all over New Zealand - get your own quotes and see how much you can save. You can then contact your insurer and tell then you plan to switch.

The New Zealand house insurance market is fairly unusual in the fact there are three dominant players - IAG (which owns AMI, NZI, State and Lumley), Tower and Vero. Despite that, independents such as Initio and Trade Me (which is a Tower product) are challenging the insurance market despite having a small market share.

Know the seven ways to save on house insurance

Compare and switch for the best deal - always shop around and compare, especially when it comes to renewal time.
Avoid cover you do not need - don't take out optional extras if you don't need them - doing so will add a chunk of cost to the policy.
Pay annually for your policy - as mentioned above, this can save up to 20%
Do not over insure - make sure your sum insured is reasonable but not overly generous. Be aware that some policies will pay 10% more than the sum insured if a total rebuild is needed after a covered natural disaster.
Reduce the excess - playing around with the excess level affects the policy price.
Secure your home - help prevent burglaries by installing a burglar alarm and consider installing deadlocks on doors and windows
Build up your no claims bonus - many policies offer a no-claims bonus, which you will be entitled to if you don't claim during the year. We suggest a number of ways to limit risk below (LINK).

Understand EQC (Earthquake Commission) cover and its limits

All house insurance policies include a fee that is paid to the Earthquake Commission (EQC). The EQC provides insurance cover, known as EQCover, which applies when an earthquake or other natural disaster occurs. Cover includes:

Damage to your home: Limited to $150,000 + GST (from July 2019).
Damage to your land: Not capped, but is limited to damage to land less than eight metres from your house.

Other covered events
For other covered events, such as floods and storms, EQCover will only cover damage to your land.

Direct EQCover

If you are unable to obtain EQCover for your residential building in the usual way (i.e. through the purchase of standard home insurance), you can apply for Direct EQCover against natural disaster damage.
Direct EQCover is the same as the EQCover anyone with a private insurance policy receives automatically.
To get EQCover, you will need to apply for insurance through the private market before applying for Direct EQCover. EQCover will consider all applications on a case by case basis where customers would otherwise be unable to obtain natural disaster insurance because of factors not relevant to natural disaster risk.
More details are on the EQC website.

Reduce the risk of theft and home damage with these easy-to-implement tips...

Hide expensive items like phones and laptops from plain sight.
Avoid leaving a spare key hidden near your front door.
Buy a light timer and schedule it for when you are going away on holiday.
Join a neighbourhood watch group and be aware of any problems before they happen to you
Install smoke alarms throughout your home.
If you live in the South Island, or in places prone to frosts, consider insulating water pipes so they do not freeze in winter (which can cause significant flooding).
Maintain your home by keeping the guttering clean, as well as inspecting for problem trees that could fall in a storm.

Always check the policy's cover, terms and conditions carefully before signing up

It'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:

Double-check the quotes - make sure the quote you see on screen is the final quote.
Make a note of the renewal date and remind yourself to look again at insurance 11 months after it starts to see if better deals are out there.
You can adjust the excess and sum insured level to get the price that suits your budget. It's not a good idea to lower the sum insured amount below what the estimate replacement cost is, but you can raise the excess to see how much of a difference it makes.

House Insurance FAQs

What is average house insurance cost in New Zealand?

There is no average price; every home is different. 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 review our best buys (LINK) and get your own quote directly with the insurers.

What is the best house insurance?

Our review of house insurance best buys (LINK) outlines the most common policies available in New Zealand, and sample costs.

What is covered by a house insurance policy?

House insurance covers the cost of rebuilding or repairing your home if it is damaged or destroyed. External garages, garden sheds and fences are also covered, as is the cost of replacing things like pipes, cables and drains. The costs of demolition, site clearance, and architects' fees are also covered by house insurance.

Commonly throughout New Zealand, most people need to claim on their house insurance when there is loss or 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 guide outlines exactly what you need to know to get an appropriate level of cover.

Is house insurance a requirement?

No, unless you have a mortgage over your home (see below). House 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, spending $700 to $1,500 a year protecting it should be a priority.

Is house insurance included in a mortgage?

No - but many banks and mortgage brokers will try and sell house 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.

Do I need home insurance if I rent?

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 would be $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.

Should I buy contents insurance separately or combine it with house insurance?

If you to insure your contents as well, our guide to house and contents insurance (LINK) explains more. If you do buy a combined policy, make sure you check the details carefully. Some insurers may have a separate excess for both parts of your policy, which means a claim affecting both the structure of your home and its contents, such as a flood or fire, will result in a double excess (CHECK THIS). Examples of insurers charging double deductions include...

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.

Ready to buy house insurance?

Once you’ve become familiar with the basics and have decided to purchase house insurance, it’s time to get the best quote for what you need. Unlike travel insurance or life insurance, there are no price comparison websites for house insurance.

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 quotes (LINK) from AA Insurance, AMI, AMP, ANZ, Inition, State, Trade Me, Tower and Westpac 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.

How to make a claim on your house insurance

In almost every case, making a claim will be an easy process. Knowing your house insurance policy’s excess level and terms and conditions will limit any nasty surprises. To have the best experience when making a claim, follow these steps:

Insurers ask to be contacted as soon as possible when there is damage or a loss. You will need to be able to pay the excess for the claim to be processed. Generally, insurers require you to:
Provide full details of the situation - the time and date, reason or cause etc.
Provide evidence of the loss - photographs of damage to your home, a police report etc
In the case of earthquake damage, your home may not be accessible for days, weeks or even months while the damage is assessed. Do not enter your property in this time.
In the case of flooding, it can take weeks (or longer) for a property to dry out.
Report any sewage issues or hazards to your local city or district council
Do not attempt to make any repairs yourself - always contact your insurer and arrange for an approved professional to do any work that is covered. If it's an emergency and your insurer cannot fix the problem, contact a qualified plumber, electrician or builder. You can keep the receipts and claim on these.
If you have the right level of cover, your house insurance policy will pay out for any damage incurred. Most policies also cover alternative accommodation (hotels, motels etc) if you cannot access your property.

If your claim is rejected, appeal and complain

Your insurer should inform you, in detail, why the claim was rejected and how it falls outside your policy.
If you disagree, jump on the phone and explain why your claim meets the T&Cs of the policy you bought.
If the insurer still refuses to cover your claim, ask your insurer for a "letter of deadlock". This letter lays out why the insurer disagrees with your claim. Once you have the letter of deadlock, you can access the Insurance & Financial Services Ombudsman Scheme which resolves disagreements between customers and their insurers.
Their free-of-charge service will make the final decision about your claim and order the insurer to pay out if they find in your favour.
If your insurer isn't a member, you can complain to Financial Services Complaint Ltd who follow a similar process.