House insurance is a must-have, but rising costs are making it harder for Kiwis to keep up. According to recent data from Quashed, house insurance premiums in New Zealand have surged over the past two years, putting more pressure on household budgets. The good news? There are practical ways to cut costs without sacrificing your coverage. With a few smart tweaks, you can make your policy work harder for you. Here are eight easy ways to save on house insurance in New Zealand.
1. Increase your excess
Did you know that increasing your excess—the amount you pay out-of-pocket when making a claim—can lead to a smaller premium? Some insurers in New Zealand may offer premium reductions when you choose a higher excess. And yes, the actual discount varies by provider, policy terms, and individual circumstances.
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 Average Premium ($) | Savings Compared to $500 Excess ($) |
$500 | $2,039 | - |
$1,000 | $1,877 | $162 |
$2,000 | $1,725 | $314 |
Source: Quashed. Note: Actual costs will vary depending on the insurer, policy coverage, sum insured levels, and location.
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.
Want to know more about house insurance? Check out our Further Reading section for a great selection of insights and tips.
2. Ensure your cover is the right amount
Does your sum insured actually reflect what it would cost to rebuild your home?
Some homeowners may set their sum insured higher than required, increasing their premiums. However, reducing your sum insured below the actual rebuild cost could leave you underinsured, meaning you may not receive enough to fully rebuild your home after a loss. Tools like the Cordell Sum Sure Calculator can help estimate appropriate coverage, but always review your insurer’s requirements.
Example: Adjusting your sum insured
Imagine your home has a sum insured of $1,000,000, but a realistic rebuild cost is $750,000. Here’s how right-sizing your coverage can affect the premium:
Sum Insured ($) | Yearly Average Premium ($) | Potential Savings ($) |
$1,000,000 | $2,665 | - |
$750,000 | $2,039 | $626 |
Source: Quashed. Note: Actual costs will vary depending on the insurer, policy coverage, sum insured levels, and location.
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.
3. Bundle and save
If you're insuring your car or belongings, bundling them with one provider can help you save significantly. Some insurers in New Zealand offer discounts when you bundle multiple policies. While it’s smart to keep everything with one company, it's important to compare quotes and policy features from multiple insurers before making a decision. Tools like Quashed's Market Scan can help evaluate different options to ensure you get the best coverage and value for your specific needs.
Want to dive deeper into house insurance? Our Further Reading section is packed with useful insights and expert tips.
4. Boost your security
Want to manage insurance costs and improve security too? Adding security features such as alarm systems and deadbolts can help. Insurers may lower your premium because they acknowledge the steps you have taken to reduce the chance of theft or damage. Consider these options:
Alarm Systems: Putting in a certified alarm system may help lower your premium.
Deadbolts: Strong locks give you more protection.
Surveillance Cameras: Cameras can scare off potential 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 pleasantly surprised by the discounts available.
Curious about house insurance? Our Further Reading section offers valuable insights and helpful tips to guide you.
5. Keep your claims history clean
Some insurers may offer discounts for maintaining a no-claims history, which can reduce your premium over time. However, failing to disclose incidents when applying for or renewing insurance could impact future claims or pricing. Check with your insurer to understand their policy on claims history.
6. Choose a basic policy and customise it
Did you know that avoiding small claims can help you save money over time? Many insurance companies offer discounts for maintaining a claim-free record, rewarding you for handling minor issues yourself. If you can afford to cover small repairs, it might be a good idea to skip minor claims. This way, you continue building your no-claims history and may benefit from lower premiums.
Looking to learn more about house insurance? Explore our Further Reading section for useful insights and practical tips.
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 real-time, which sets it apart from other options.
8. Take location into account
If you live in an area prone to earthquakes, floods, or other natural disasters, you might face higher insurance premiums. For example, homes in Wellington often have higher premiums due to earthquake risk. Similarly, properties near rivers or the coast may come with increased costs for flood coverage.
If you’re in a high-risk area, talk to your insurance provider—they may offer solutions to help lower your costs. You could consider reinforcing your home's foundation or installing better drainage systems to mitigate risks.
Found a better deal yet?
Looking for ways to save on house insurance? It's easier than you think.
Smart moves like increasing your excess, adjusting your coverage to match what you actually need, and bundling your policies can make a big difference to your wallet. Your home is unique, so it’s worth checking your policy now and then to make sure it’s still the right fit for you.
Want to compare your options? Sign up with Quashed to compare your options – it’s that simple.
Further reading
Check out these helpful guides:
House Insurance Guide: An introductory guide to house insurance.
Why Are House Insurance Premiums Increasing?: Factors driving rising premiums.
House Insurance Premiums & Climate Change: Learn about climate change and premiums.
Rethinking Insurance for First-Time Home Buyers: Tips for first-time buyers.
Key Considerations with House Insurance: Key factors to consider.
Landlord Insurance: The Ins and Outs of Insuring Your Rental: Protecting your rental property.
FAQs
House insurance basics
How does house insurance work in New Zealand?
House insurance helps cover the cost of repairing or rebuilding your home if it’s damaged by fires, storms, theft, or natural disasters. Policies vary, so it’s essential to check what’s covered, any exclusions, and limits before choosing a policy.
What’s the best house insurance in New Zealand?
The best house insurance depends on your budget, location, and risk factors. Quashed helps you compare policies from different providers, making it easier to find an option that suits your needs.
How much does house insurance cost in New Zealand?
According to Quashed’s Q4 2024 data, the average house insurance premium in NZ is $2,704 per year. However, costs vary based on location, house type, and coverage level.
Wellington homeowners pay the highest premiums, averaging $4,446 per year, due to earthquake risk and reinsurance pricing models.
Auckland homeowners pay the lowest, averaging $2,210 per year.
Does house insurance cover natural disasters?
Most NZ house insurance policies include cover for natural disasters, such as earthquakes, floods, and storms, often in partnership with the Natural Hazards Commission. However, insurers may have exclusions or require add-ons for high-risk areas, so it’s important to review your policy details carefully.
House insurance costs
Why has my house insurance premium increased even though I haven’t made a claim?
Premiums are based on market-wide risks, not just individual claims. Your insurance may have increased due to:
Inflation – Higher costs for building materials and labor.
Climate change– More frequent storms, floods, and earthquakes leading to increased claims
Reinsurance costs – Global insurers adjusting their pricing, affecting NZ premiums.
More claims nationwide – Increased payouts across NZ impact all policyholders.
Why do some regions, like Wellington, have higher house insurance costs?
Wellington has the highest house insurance costs due to:
Seismic risk – Earthquake-prone areas have a higher likelihood of claims.
Reinsurance pricing – Global insurers classify Wellington as a high-risk zone.
Higher rebuild costs – Material and labor costs in the region influence premiums.
Save on House Insurance
How can I lower my house insurance premiums in NZ?
You may be able to reduce your premiums by:
Increasing your excess – A higher excess typically lowers your premium.
Reviewing your sum insured – Ensure your cover reflects rebuild costs accurately.
Paying annually – Some insurers charge extra fees for monthly payments.
Bundling policies – Combining house and contents insurance may unlock discounts.
Improving home security – Alarms, security systems, or earthquake strengthening can sometimes lower costs.
Comparing insurers regularly – Prices change, so shopping around helps you find better deals.
Choosing & comparing policies
What should I check before buying house insurance?
Before choosing a policy, review:
Coverage limits – Ensure your sum insured covers full rebuild costs.
Exclusions – Check if natural disasters are covered if you live in a high-risk area.
Premium vs. excess balance – Choose a level that is affordable if you need to claim.
Claim handling reputation – Read reviews on how insurers process claims before choosing a policy.
How can I compare house insurance policies in NZ?
Quashed makes comparing house insurance easy. Our platform lets you:
Compare policies side-by-side in real time
Adjust coverage levels to see premium changes instantly.
Find a policy that fits your budget—all in one place
House insurance & affordability
Do I need to review my sum insured regularly?
Yes! Keeping your sum insured up to date helps avoid:
Over-insurance – Paying for coverage beyond what’s needed.
Under-insurance – Not having enough cover if a rebuild is required.
Regularly reviewing your policy ensures you only pay for what you need.
Can increasing my policy excess help lower my house insurance premium?
Yes. Choosing a higher excess can reduce your premium, but make sure it’s an amount you can afford if you need to claim.
This article provides general information only and does not constitute insurance or financial advice. Insurance policies vary between providers, and you should check with your insurer or a licensed adviser for guidance specific to your situation. For full details, refer to Quashed’s terms and conditions.
