Home & Contents Insurance NZ - Compare Quotes | InsureNZ

What is Home & Contents Insurance?

Home and contents insurance protects your most valuable asset - your home - and everything inside it. In New Zealand, where natural disasters like earthquakes, floods, and storms are real risks, comprehensive home insurance provides essential financial protection that can save you hundreds of thousands of dollars if disaster strikes.

Your home is likely your largest financial investment. With the median house price in New Zealand exceeding $800,000 and rising, protecting this asset is crucial. Beyond the building itself, most families have $50,000-$150,000 worth of contents including furniture, electronics, clothing, and personal items. Without proper insurance, replacing these after a fire, flood, or earthquake would be financially devastating.

Types of Home & Contents Insurance

Building Insurance (Home Insurance)

Building insurance covers the physical structure of your house including walls, roof, floors, windows, doors, and permanent fixtures like built-in kitchens, bathrooms, and fixed appliances. It also typically covers external structures like garages, sheds, fences, driveways, and landscaping up to specified limits.

If your home is damaged or destroyed by fire, earthquake, flood, storm, or other covered events, building insurance pays to repair or rebuild it. This includes costs for demolition, site clearance, council consents, and temporary accommodation while your home is being rebuilt. For most homeowners with mortgages, building insurance is mandatory as lenders require protection for their security.

Contents Insurance

Contents insurance covers your personal belongings inside your home including furniture, appliances, electronics, clothing, jewelry, artworks, and other possessions. It protects against theft, fire, flood, earthquake, and accidental damage. Many policies also cover contents temporarily removed from your home, such as items in your car or at the beach house.

Even if you rent and don't need building insurance, contents insurance is essential. A typical family's contents are worth $50,000-$150,000, and replacing everything after a fire or burglary would be financially crippling without insurance. Contents policies often include public liability cover, protecting you if someone is injured in your home or you damage someone else's property.

Landlord Insurance

Landlord insurance is specialized building and contents insurance for rental properties. Beyond standard building cover, it includes loss of rent if your property becomes uninhabitable, landlord's contents (appliances, carpets, curtains provided to tenants), malicious damage by tenants, and enhanced legal liability coverage.

With approximately 600,000 rental properties in New Zealand, landlord insurance is crucial for property investors. Standard home insurance doesn't adequately cover rental properties, as tenants create additional risks. Landlord insurance typically costs 10-20% more than standard home insurance but provides essential protections specific to rental situations.

Combined Home & Contents Insurance

Most insurers offer combined packages covering both building and contents, often with premium discounts of 5-15% compared to separate policies. Combined policies simplify management with one policy, one renewal date, and one claims process. This is the most popular option for homeowners, providing comprehensive protection with administrative convenience.

How Much Does Home Insurance Cost in NZ?

Home and contents insurance costs vary significantly based on location, property value, coverage type, and risk factors. Here are typical annual premiums for New Zealand home insurance in 2024:

Building Insurance (House value $600,000):

Auckland: $1,200-$1,800/year
Wellington: $1,400-$2,200/year (higher earthquake risk)
Christchurch: $1,500-$2,500/year (highest earthquake risk)
Other regions: $900-$1,400/year

Contents Insurance ($80,000 sum insured):

Urban areas: $400-$700/year
Rural areas: $300-$500/year

Combined Home & Contents:

Low-risk areas: $1,200-$1,800/year
Medium-risk areas: $1,500-$2,200/year
High-risk areas: $2,000-$3,500/year

Landlord Insurance:

Typical rental property: $1,500-$2,500/year (10-20% above standard home insurance)

Wellington and Christchurch have the highest premiums due to earthquake risk. Auckland premiums are elevated due to higher property values and theft rates. Properties in flood zones, coastal areas, or earthquake-prone regions face premium loadings of 20-50%.

Sum Insured vs Replacement Cover

Understanding the difference between these coverage types is crucial for adequate protection:

Replacement Cover (Total Replacement)

Replacement cover automatically covers the full cost to rebuild your home regardless of the sum insured amount, protecting against inflation and rising building costs. If your home was insured for $500,000 but rebuilding costs $650,000, the insurer pays the full $650,000. This is the recommended option in New Zealand, particularly given our earthquake risk and fluctuating building costs.

Replacement cover costs 15-30% more than sum insured policies but provides superior protection. Following the Christchurch earthquakes, many homeowners with replacement cover were fully covered despite building costs exceeding pre-earthquake estimates by 50-100%. This coverage type offers peace of mind that your home will be fully rebuilt regardless of cost increases.

Sum Insured

Sum insured policies only pay up to the specified sum insured amount. If you're underinsured, you face significant financial gaps. For example, if your home is insured for $400,000 but rebuilding costs $500,000, you're personally liable for the $100,000 shortfall. While premiums are lower, the risk of underinsurance makes this option less desirable.

If choosing sum insured, use the Cordell Sum Sure calculator or similar tools to accurately estimate rebuilding costs. Review and adjust your sum insured annually as building costs change. Even small cost increases can leave you significantly underinsured after several years.

What's Typically Covered by Home Insurance?

Building Insurance Usually Covers:

Fire and explosion damage
Earthquake damage (standard in NZ policies)
Flood and storm damage
Theft and vandalism
Accidental damage (breaking windows, holes in walls, etc.)
Malicious damage
Lightning and weather events
Temporary accommodation while home is uninhabitable
Site clearance and demolition
Council consent and architect fees

Contents Insurance Usually Covers:

Furniture and furnishings
Electronics and appliances
Clothing and personal items
Jewelry and valuables (often with sublimits)
Sports and hobby equipment
Items temporarily removed from home
Food spoilage (if power fails due to insured event)
Public liability (damage to others' property or injury to visitors)

Usually NOT Covered:

Wear and tear or gradual deterioration
Poor maintenance or lack of upkeep
Intentional damage by you or your family
Damage by pets (pet damage to your own property)
Damage during renovations (may need separate builder's risk insurance)
Mechanical or electrical breakdown
Coastal erosion
Damage from trees or vegetation unless from storm
Loss or damage while property is unoccupied for extended periods

Understanding Excesses in Home Insurance

Home insurance excesses in New Zealand are more complex than other insurance types due to natural disaster risks:

Standard Excess: The base excess for most claims, typically $500-$1,000. You can choose higher excesses ($2,000-$5,000) for lower premiums.
Earthquake Excess: A percentage of your sum insured (typically 1-10%) or a fixed amount (often $500-$1,000 minimum). Wellington and Christchurch have higher earthquake excesses due to higher risk.
Storm/Flood Excess: Some insurers apply additional excesses for storm or flood claims, typically $500-$1,000 above the standard excess.
Voluntary Excess: Additional excess you choose to reduce premiums. Each $1,000 of additional excess typically reduces premiums by 10-15%.
Rental Property Excess: Landlord insurance often has higher base excesses ($1,000-$2,000) due to increased risk.

Comparing Major Home Insurance Providers

AA Insurance

AA Insurance is one of New Zealand's leading home insurers with approximately 20% market share. They offer comprehensive building, contents, and landlord insurance with both sum insured and replacement cover options. AA is known for strong customer service, efficient claims processing, and a network of approved builders. Members receive premium discounts up to 10%. Their policies include good natural disaster coverage and flexible excess options.

State Insurance

With over 160 years of experience, State Insurance holds around 15% of the home insurance market. They offer building, contents, and landlord insurance with competitive premiums for well-maintained properties. State provides flexible sum insured and replacement cover options, multi-policy discounts when bundling home with car insurance, and straightforward policy terms. Their claims process is efficient with good customer satisfaction ratings.

Tower Insurance

Tower provides comprehensive home and contents insurance with replacement cover and sum insured options. They're known for competitive premiums, particularly for properties in lower-risk areas. Tower offers guaranteed repair service through certified builders with lifetime guarantees on approved repairs. Their policies include good earthquake coverage and flexible payment options. Tower's digital claims process is highly rated for efficiency.

AMI Insurance

AMI holds approximately 10% of the home insurance market and is known for straightforward policies and competitive pricing. They offer building, contents, and landlord insurance with both replacement and sum insured options. AMI provides a loyalty program where excesses reduce each year you don't claim. Their policies include comprehensive natural disaster coverage and flexible excess structures designed for NZ conditions.

Vero Insurance

Vero is one of New Zealand's largest general insurers with around 12% market share for home insurance. They offer comprehensive building, contents, and landlord insurance with flexible coverage options. Vero provides competitive premiums for families and multi-property owners, offering discounts up to 15% when insuring multiple properties. Their claims service is well-regarded, particularly for complex earthquake claims.

Youi Insurance

Youi takes a personalized approach, asking detailed questions about your property's security, construction, and risk factors to build custom quotes. This can result in significant savings for low-risk properties with good security. Youi offers building and contents insurance with flexible excess options. Their premiums can be 15-25% below traditional insurers for well-protected properties in low-risk areas.

Regional Home Insurance Considerations

Auckland Home Insurance

Auckland properties face moderate earthquake risk but higher theft and storm damage risks. Premiums are elevated by high property values, with the median Auckland home now worth over $1 million. Weather-tightness issues in homes built 1992-2004 may attract premium loadings or exclusions. Installing quality security systems can reduce premiums by 10-15%. Auckland's volcanic field creates specific risks for some suburbs, potentially affecting insurability or premiums.

Wellington Home Insurance

Wellington has the highest earthquake risk of any NZ capital, resulting in premiums 15-30% above the national average. Earthquake excesses are typically higher (2-10% of sum insured). Properties on hills face landslip risks requiring specific coverage. Wellington's strong winds create higher storm damage risk, reflected in premiums. Earthquake strengthening work can reduce premiums significantly - some insurers offer 10-25% discounts for strengthened homes.

Christchurch Home Insurance

Following the 2010-2011 earthquakes, Christchurch has the most complex home insurance market in NZ. Premiums are 20-40% above pre-earthquake levels, with some properties facing 100%+ increases. Properties in TC3 land (high risk) are harder to insure and face significantly higher premiums or earthquake cover restrictions. Post-earthquake rebuilt homes often receive better rates than older properties. Earthquake excesses remain high (5-10% of sum insured common).

Coastal and Flood-Prone Areas

Properties in identified flood zones face premium loadings of 20-100% and may have higher flood excesses. Some high-risk coastal areas are becoming difficult to insure as climate change increases risk. Properties in the LINZ sea level rise zones may face increasing premiums or restrictions. Consider flood protection measures (raised floors, flood barriers) which can reduce premiums. Some areas now require flood certification before insurance is offered.

How to Choose the Right Home Insurance

Decide on Coverage Type: Replacement cover is strongly recommended despite higher cost, providing better protection against rising building costs.
Calculate Required Coverage: Use professional calculators (Cordell Sum Sure) to determine accurate rebuilding costs. Don't base it on purchase price or market value.
Assess Contents Value: Itemize major possessions and estimate total value. Most families need $50,000-$150,000 contents cover.
Understand Your Risks: Consider your property's earthquake, flood, and storm risks. Ensure adequate coverage for your specific risks.
Review Excess Structures: Balance lower premiums against higher excesses. Can you afford a 10% earthquake excess on a $600,000 property ($60,000)?
Check Special Items Cover: Ensure adequate cover for jewelry, art, collectibles, or other valuable items (often have sublimits of $5,000-$10,000).
Compare Multiple Quotes: Premiums vary 30-50% between insurers for identical coverage. Compare at least 3-4 providers.
Read Policy Exclusions: Understand what's not covered, particularly for your property's specific risks.

Making a Home Insurance Claim

When disaster strikes, contact your insurer immediately to lodge a claim and get a claim number. Take photos and videos of all damage before any cleanup (though make emergency repairs to prevent further damage). Keep all receipts for temporary accommodation, emergency repairs, and damaged items.

For building damage, an assessor will inspect and determine repair or rebuild costs. For replacement cover, they'll manage the rebuild through approved builders. For sum insured policies, they'll assess whether repair costs exceed the sum insured. Contents claims require proof of ownership (receipts, photos, videos from before the loss) for all claimed items.

Straightforward claims (minor damage, contents theft) typically settle within 2-6 weeks. Major claims (significant earthquake damage, total loss fires) can take months or years, particularly if rebuilding is required. Stay in regular contact with your insurer and claim manager. Don't hesitate to escalate issues or contact the Insurance & Financial Services Ombudsman if disputes arise.

Ways to Save on Home Insurance

Bundle Policies: Combining home and contents with one insurer typically saves 10-20%. Adding car insurance can save an additional 5-10%.
Increase Security: Installing monitored alarms, deadlocks, and window locks can reduce premiums by 10-20%.
Raise Your Excess: Increasing standard excess from $500 to $2,000 can reduce premiums by 15-25%.
Compare Annually: Home insurance premiums change regularly. Switching providers can save $200-$500 annually.
Pay Annually: Annual payments typically save 5-10% compared to monthly installments.
Maintain Your Property: Well-maintained properties with regular upkeep qualify for better rates. Address maintenance issues promptly.
Consider Sum Insured: While less recommended, sum insured policies cost 15-30% less than replacement cover if you're confident in your valuation.
Strengthen for Earthquakes: Earthquake strengthening can reduce premiums by 10-25%, particularly in Wellington.
Install Smoke Alarms: Photoelectric smoke alarms in all bedrooms and living areas can reduce premiums by 5-10%.
Review Coverage Regularly: Ensure you're not over-insured on contents as items depreciate or are replaced.

Frequently Asked Questions

What's the difference between home and contents insurance?

Home insurance covers the physical structure of your house and fixed items like built-in kitchens. Contents insurance covers your belongings inside - furniture, electronics, clothing, and personal items. Most people need both for complete protection.

How much does home insurance cost in NZ?

Home and contents insurance in New Zealand typically costs $800-$2,500 per year depending on your location, house value, contents value, and coverage type. Auckland properties typically cost 20-30% more than rural areas due to higher risk.

Do I need home insurance in New Zealand?

Home insurance isn't legally required, but mortgage lenders require it for properties with mortgages. Even without a mortgage, insurance is essential protection against events like fire, flood, earthquake, and storm damage that could cost hundreds of thousands to repair.

What does home insurance cover?

Home insurance typically covers fire damage, storm and weather damage, earthquake (in NZ), flood, theft, vandalism, accidental damage, legal liability, temporary accommodation if your home is uninhabitable, and the cost to rebuild your home.

Should I choose sum insured or replacement cover?

Replacement cover (also called total replacement) is generally recommended in NZ. It covers the full cost to rebuild regardless of sum insured, protecting against inflation and rising building costs. Sum insured is cheaper but risky if the insured amount is insufficient.

What is an insurance excess?

An excess is the amount you pay towards each claim before insurance covers the rest. Standard excesses are typically $500-$1,000. NZ policies usually have additional earthquake excesses (often 1-10% of sum insured) and sometimes storm or flood excesses.

Does home insurance cover earthquake damage?

Yes, earthquake cover is standard in all New Zealand home insurance policies, though it's not always included elsewhere. However, earthquake excesses are higher (typically 1-10% of sum insured) and some high-risk areas may have exclusions or higher premiums.

What is landlord insurance?

Landlord insurance covers rental properties and includes building cover plus additional protections like loss of rent if the property becomes uninhabitable, landlord's contents (appliances, carpets, curtains), and legal liability for tenant injuries. It typically costs 10-20% more than standard home insurance.

How do I determine my sum insured?

For home insurance, use the Cordell Sum Sure calculator or similar tools that estimate rebuilding costs based on your home's size, age, and features. For contents, itemize valuable possessions and estimate total value. Underinsuring can mean partial claim payments.

Can I reduce my home insurance premium?

Yes, you can reduce premiums by increasing your excess, installing security systems and smoke alarms, bundling home and contents insurance, maintaining your property well, comparing providers annually, and choosing sum insured over replacement cover (though less recommended).

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