House insurance is important, but you don’t need to spend too much money on it. Recent data from Quashed shows that house insurance in New Zealand has gone up by 17% over the past year, reaching an average of $2,702. This makes it very important to find ways to save money. By making some smart changes, you can keep your insurance costs low without losing coverage. Here are eight simple tips to help you save on house insurance in New Zealand.
1. Raise your excess – save big with small adjustments
Did you know that raising your excess—the amount you pay out-of-pocket on a claim—can lead to a smaller premium? Many insurers in New Zealand offer up to 20% lower premiums when you choose a higher excess. It’s a simple way to save if you’re comfortable covering minor costs when you make a claim.
Example: Adjusting your excess Let’s say you own a house in Auckland valued at $750,000. Here’s how raising your excess could impact your annual premium:
Excess | Yearly Premium ($) | Savings Compared to $500 Excess ($) |
$500 | $2,039 | - |
$1,000 | $1,877 | $162 |
$2,000 | $1,725 | $314 |
Source: Quashed
By increasing your excess from $500 to $1,000, you could save $162 annually, while bumping it to $2,000 could bring a $314 annual saving. It’s an easy way to save if you can handle a higher out-of-pocket cost when needed.
Wondering why house insurance premiums keep climbing? Our blog on why premiums are increasing breaks down the key factors driving up costs.
2. Right-size your cover – avoid overpaying
Does your sum insured actually reflect what it would cost to rebuild your home? Many homeowners mistakenly set their sum insured too high, leading to higher premiums than necessary. A tool like the Cordell Sum Sure Calculator can help you find the right amount based on actual rebuild costs—not market value or land value, which can sometimes be misleading.
Example: Adjusting Your Sum Insured
Imagine your home has a sum insured of $1,000,000, but a realistic rebuild cost is $750,000. Here’s how right-sizing your coverage affects your premium:
Sum insured ($) | Yearly average premium ($) | Potential savings ($) |
$1,000,000 | $2,665 | - |
$750,000 | $2,039 | $626 |
Source: Quashed
By aligning your sum insured with the actual rebuild cost, you could save $626 annually. Regularly reviewing and updating your sum insured ensures you’re paying for the coverage you need without overpaying. Understanding why premiums are rising is just one piece of the puzzle. For a comprehensive guide on securing the right cover for your home, explore our post House Insurance: A Homeowner’s Guide.
3. Bundle and save
If you are getting insurance for your car or belongings, bundling them with one provider can save you a lot. Many insurers in NZ, like AA Insurance and Tower, offer discounts for having multiple policies.
While It’s smart to keep everything with one company, before deciding to bundle, compare quotes and policy features from multiple insurers. Tools like Quashed's Market Scan can assist in evaluating different options to ensure you receive the best coverage and value for your specific needs.
4. Boost your security
Want to cut costs on your insurance and improve security too? Adding security features such as alarm systems and deadbolts can help. Insurers often lower your premium because they appreciate steps that reduce the chance of theft or damage.
Consider these options:
Alarm Systems: Putting in a certified alarm system can lower your premium by up to 5%.
Deadbolts: Strong locks give you more protection.
Surveillance Cameras: Cameras can scare off possible intruders and help provide proof if needed.
Check with your insurance company to see which security upgrades can help you save money. You might be happy with what you discover!
The average Kiwi household can save
$2,023.79 a year by shopping their insurance!
Find out how your renewal prices stack up against other options out there!
5. Keep your claims history clean
Did you know that not filing small claims can help you save money over time?
Many insurance companies give you discounts for not making claims. They reward you for fixing minor problems by yourself. If you can afford repairs on your own, it can be a good idea to skip small claims. This way, you can keep building your no-claims history.
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6. Choose a basic policy and customise as needed
If you want to save money, consider getting a simple house insurance policy that covers the basics. You can add extra features later, like accidental damage or temporary accommodation, if you need them. By customising your policy, you will only pay for what you actually need.
7. Shop around with Quashed
Using a tool like Quashed is an easy way to save money on your house insurance. Quashed lets you see policies from different insurers in New Zealand at the same time. This makes it easy to find possible savings from no-claims bonuses, security discounts, and bundling multiple policies. By shopping around, you can get the best deal without needing to call each provider.
Market Scan quotes are direct from insurers
So you won’t pay more with Quashed
8. Take location into Account – consider regional risks
If you live in a place that is more likely to have earthquakes, floods, or other natural disasters, you might pay higher insurance premiums. For example, homes in Wellington could have higher premiums because of the earthquake risk.
Similarly, properties near rivers or the coast may cost more for flood coverage. If you are in a high-risk area, talk to your insurance company. They can help you find ways to lower your costs. You could reinforce your home's foundation or put in drainage.
It’s a wrap
Saving on house insurance in New Zealand doesn’t have to be complicated. A few smart moves—like raising your excess, right-sizing your coverage, and bundling policies—can help keep costs down without sacrificing peace of mind. And remember, your home is unique, so it’s a good idea to check in on your policy every now and then and stay up-to-date on changes in the insurance world. Tools like Quashed make it simple to compare options and find the right deal. With these tips, you’re all set to protect both your home and your budget.
FAQs
How does house insurance work in New Zealand?
House insurance in New Zealand helps pay to fix or rebuild your home if it gets damaged or lost. This can happen from events like fire, theft, or natural disasters. Policies can be different, so it is important to know what is covered and any cases where it might not apply.
What is the best home insurance for NZ?
The best home insurance in New Zealand is based on what you need. This includes the coverage you want, your budget, and any risks related to where you live. Services like Quashed help you compare plans from leading providers. This way, you can find the right choice for you.
How much does house insurance cost in NZ?
The average cost of house insurance in New Zealand is about $2,702. However, this can change a lot depending on several things. These include where you live, how old your home is, and what kind of coverage you pick. If you live in a higher-risk area or have a special type of home, you might pay more for insurance.
Does house insurance cover natural disasters?
House insurance in New Zealand usually covers several natural disasters. This can include events like fires, floods, and earthquakes. However, it is important to read your policy carefully. Some events may not be covered, or there may be specific rules. It is best to check with your insurance provider to understand what is included in your house insurance and what is not.
