Whether you’re a first home buyer or a long-time homeowner, house insurance is a very important safety net. It’s there to help when things go pear-shaped—from wild weather to unexpected disasters—so you’re not left footing a massive bill. This guide breaks down what you need to know about house insurance in New Zealand, helping you pick the right cover without the jargon.
Understanding house insurance
House insurance is your financial safety net when things go sideways. Whether it’s a wild storm, a kitchen fire, or a burst pipe flooding your lounge, a solid policy helps cover the costs of getting things back to normal.
The key to picking the right cover? Understanding the fine print. Every policy has a policy wording, which spells out exactly what’s covered, what’s not, and how much the insurer will pay if you need to claim. One of the biggest details to check is your sum insured—this is the maximum payout you’ll get if your home is damaged or destroyed.
But here’s the kicker—not all policies are created equal. Some cover major disasters like earthquakes and floods, while others might leave you footing part of the bill. That’s why it pays to read the details, compare your options, and know exactly what you’re signing up for.
At the end of the day, house insurance is about protecting your biggest asset and making sure you’re not left scrambling when life throws a curveball. Whether you go all-in with comprehensive cover or choose a more budget-friendly policy, the goal is the same—keeping your home (and your wallet) safe when the unexpected happens.
Why bother with house insurance in NZ?
House insurance is a smart choice for anyone. It’s all about protecting your finances, especially when things go wrong, like fires, storms, or theft. Think about it—if something happened to your home, would you have enough to cover the costs to repair or replace your belongings? Here’s how house insurance in NZ can help:
Protection from property damage: If a fire or storm damages your home, insurance can help with the repair costs.
Liability coverage: If someone gets hurt on your property, liability insurance can cover legal fees and other expenses.
Temporary accommodation: Many insurance policies will help cover the cost of staying elsewhere while your home is being repaired.
Meeting mortgage requirements: Most lenders require you to have insurance to protect their investment, which makes getting house insurance essential for homeowners.
Keen to know more? Our Further Reading section is packed with handy tips and insights.
How do I assess my house insurance needs?
To choose the right home insurance, you first need to understand what your home really needs. One of the key things to figure out is how much it would cost to rebuild your home.
Underestimating this cost could lead to financial challenges if you ever need to make a claim. Tools like the Cordell Sum Sure Calculator are super helpful and free to use. They can give you a good idea of how much it will cost to rebuild your home, taking into account things like professional fees and the materials used. To get started, just enter details like your home’s size, materials, and location, and you'll receive a custom estimate.
By using the Cordell Calculator, you can make sure your house insurance covers the true cost of rebuilding. If you want to feel more confident about your numbers, it’s worth talking to registered valuers or quantity surveyors. Local builders can also give solid advice. And don’t forget—it’s essential to update your sum insured regularly, especially after any big renovations.
Got questions? Check out our FAQs at the end for straightforward answers.
How much does house insurance cost in New Zealand?
House insurance costs have continued to rise in New Zealand, driven by factors like natural disasters, inflation, and rising building costs. The latest Quashed Index (Q4 2024) shows that the average annual house insurance premium is now $2,704, a 2.1% increase from the previous year.
Here’s a breakdown of how premiums have changed over time:
Year-on-year average house insurance cost
Year Ended | Average house insurance cost ($) |
Q4 2022 | $2,062 |
Q4 2023 | $2,648 |
Q4 2024 | $2,704 |
Average house insurance costs by region
Region | Average house insurance cost ($) |
National | $2,704 |
Auckland | $2,210 |
Canterbury | $2,817 |
Wellington | $4,446 |
Source: Quashed. Note: Actual costs will vary depending on the insurer, policy coverage, sum insured levels, and location.
These figures highlight significant regional differences. Wellington remains the most expensive city for house insurance, with an average premium of $4,446—a massive $1,742 above the national average due to its high earthquake risk. Meanwhile, Auckland has the lowest average premiums at $2,210, sitting $494 below the national average.
What factors affect the differences in home insurance costs?
Seismic activity: Wellington's location near fault lines makes it more prone to earthquakes, which leads to higher premiums for coverage.
Risk-based pricing: Insurers look at specific risks tied to a property, such as its location or vulnerability to natural disasters. Areas with higher risks, like Wellington, tend to have higher premiums.
Reinsurance costs: To protect themselves, insurers use reinsurance, and the rising cost of this, especially in high-risk areas, impacts premiums in these regions.
Construction costs: With rising prices for building materials and labour, insurers are paying more for claims, which increases premiums across the board.
Understanding house insurance costs and premiums
House insurance costs in New Zealand can vary quite a bit. Several factors play a role in determining your premium, and understanding these can help you manage it better.
Home location: Properties in high-risk areas, like Wellington (which is prone to earthquakes) or regions susceptible to flooding, usually have higher insurance costs due to the added risk.
Property age and condition: Older homes often cost more to insure because of the higher maintenance required, while newer homes can sometimes be cheaper to cover.
Coverage level and excess: The type of coverage you choose and the excess amount you select will impact your premium. Opting for a higher excess can lower your premiums, but it may cost you more if you need to make a claim.
Understanding how house insurance costs work means knowing how each factor impacts your premium. By being informed, you can make smarter decisions about your insurance. Keen to know more? Check out our Further Reading section for useful insights and tips.
How do I make a claim?
If something goes wrong, it’s good to know how to handle the claims process. Here’s what you need to do:
Contact your insurer immediately: Inform your insurance provider about what happened as soon as possible. This is especially important if there’s a claim deadline.
Gather your documents: Find your policy number. Take clear photos or videos of the damage. Keep all important receipts together.
Stay honest and clear: Provide accurate information to your insurer. This can help speed up the process. If needed, reach out to the Insurance and Financial Services Ombudsman (IFSO) for assistance.
Preparing your home insurance claim
When you’re ready to make a claim, start by gathering important details. First, write down your policy information. Then, note the date and time of the incident. If it’s a total loss, explain the damage clearly. This helps your insurer get the best estimate of your rebuild costs. Whenever possible, take photos or videos before making repairs, as this evidence is critical for your claim.
Call your insurance company as soon as the event happens to start your claim.
They’ll guide you through the process and may ask you to complete a claim form.
Always be honest and clear when sharing information with your insurance provider.
Be prepared to provide any requested documents, such as receipts, invoices, or police reports if necessary..
What to do in case of delays or disputes
Sometimes, your insurance claim gets approved quickly. Other times, it might take longer, and issues can arise. If this happens, keep following up with your insurance provider. If you need further help, you may need to call emergency services. It’s also important to write down everything you discuss during your calls.
If you have an issue with your claim, start by being polite with your insurer.
If they can’t help, reach out to the Insurance and Financial Services Ombudsman (IFSO).
They offer a free service to help resolve disputes fairly.
Keep clear notes of all your communications.
Write down the dates and times of each conversation.
Remember the names of the people you speak with—this information could be helpful if any issues arise later.
How Quashed can help with house insurance
Quashed makes house insurance comparisons simple by providing clear, side-by-side views of coverage options from multiple insurers, updated in real time. Here’s how Quashed helps you confidently explore your options:
Understand coverage with ease: Quashed breaks down policy details so you can quickly see what’s covered, including coverage limits and key conditions.
Discover useful extras: From optional add-ons to unique features, Quashed helps you explore what’s available, so you can choose coverage that fits your priorities.
Transparency: With Quashed, policy limits and exclusions are clearly outlined, making it easier to choose coverage that protects what matters most.
With Quashed, you can compare policies in one place, making it easier to find house insurance that fits your home and budget—without the hassle.
Protect your home today—start comparing in minutes!
Quashed makes house insurance comparisons simple by providing clear, side-by-side comparisons of coverage options from multiple insurers—all updated in real time.
Join over 45,000 Kiwis who are already making smarter insurance choices. Why not be one of them?
Further reading
Enjoy these great reads:
Understanding house insurance
Key considerations for house insurance: Learn what matters when choosing house insurance.
Top house insurance questions answered: Common concerns Kiwi homeowners have about house insurance.
Why are house insurance premiums increasing?: Find out why costs are rising in NZ.
House insurance for older homes and high-risk properties: Insuring older or riskier properties.
Saving on house insurance
Comparing house insurance quotes: Tips to help you find the best deal when comparing house insurance in NZ.
Budget hacks for house insurance: Discover smart ways to save on your premiums.
Home upgrades and insurance premiums: Learn how renovations can impact your coverage.
House insurance trends and insights
House insurance and climate change: What impacts climate change is having on insurance.
Rethinking insurance for first-time home buyers: Must-know tips for first-time Kiwi homeowners.
Comparing property information websites: Property information websites and insurance.
FAQs
Why has my house insurance premium increased even though I haven’t made a claim?
House insurance premiums can increase due to a range of factors beyond individual claims. Insurers adjust pricing based on:
Inflation and rising rebuild costs.
Higher claims from extreme weather events such as floods and storms.
Reinsurance costs that insurers pay to protect against large claims.
Regional risk factors, including earthquake risk in some areas.
Individual property assessments, including building materials and age.
Premium changes vary between insurers, so check your renewal notice or contact your provider to understand specific cost adjustments.
How can house insurance premiums be reduced in New Zealand?
Reducing house insurance costs depends on several factors. Consider the following strategies:
Increase your excess: Choosing a higher excess can lower your premium, but ensure it remains affordable in the event of a claim.
Ensure an accurate rebuild valuation: Overestimating your sum insured can lead to unnecessary costs. A professional valuation can help.
Compare policies regularly: Insurance prices vary between providers, so reviewing options can help find a competitive rate.
Bundle house and contents insurance: Some insurers offer discounts when both policies are held with them. However, bundling is not always the cheapest option, so compare policies carefully.
Improve home security: Some insurers offer discounts for security features such as smoke alarms and burglar alarms, but this depends on the provider’s risk assessment.
Always check with insurers for specific policy details before making changes based on expected savings.
Which insurance companies provide house insurance in New Zealand?
Several insurers offer house insurance in New Zealand, each with different policy features, pricing, and exclusions. When choosing a provider, consider:
Policy wording and exclusions.
How claims are processed and assessed.
Customer service and responsiveness.
Premium costs and optional add-ons.
Comparing policies from multiple insurers ensures you find coverage suited to your needs.
Is it better to have house and contents insurance with the same provider?
Some insurers offer discounts for bundling house and contents insurance, and managing both policies with the same provider can simplify claims and renewals. However, bundling is not always the best option. Key considerations include:
Cost: Some insurers offer discounts, while others may not. Compare bundled and separate policies to find the best deal.
Coverage: The level of coverage and exclusions may differ between providers, so review policy details carefully.
Claims process: Some providers streamline claims for bundled policies, which can be an advantage during a loss event.
It is always advisable to compare individual policy terms before deciding.
Why do house insurance premiums cost more in Wellington than in other parts of New Zealand?
Wellington’s house insurance costs are typically higher due to increased earthquake risk. Insurers factor in:
Proximity to major fault lines, increasing seismic risk.
Reinsurance costs due to the high potential for earthquake-related claims.
The age and construction type of buildings, which may affect repair costs.
Regional risk factors impact premiums across the country. Other areas, such as Auckland, may see higher premiums due to flood risks and urban rebuild costs. Insurers assess risk differently, so pricing varies between providers.
How often should a house insurance policy be reviewed?
It is recommended to review your house insurance policy annually or whenever significant property changes occur. Consider a review if:
You renovate, extend, or upgrade your home, which may affect rebuild costs.
You install security features that may qualify for discounts.
Your insurer updates policy terms, exclusions, or pricing.
Property values shift significantly, impacting your sum insured amount.
Regularly reviewing your policy ensures it remains suitable for your circumstances.
What factors affect the cost of house insurance in New Zealand?
House insurance premiums vary based on several factors, including:
Location: Areas prone to earthquakes, floods, or storms typically have higher premiums.
Rebuild costs: The sum insured amount reflects estimated rebuilding expenses, including materials and labour.
Home construction: Older homes or properties built with higher-risk materials may cost more to insure.
Security measures: Some insurers offer discounts for burglar alarms, smoke alarms, or security cameras.
Claims history: A history of frequent claims may lead to higher premium costs.
Each insurer applies different risk assessments, so pricing varies between providers.
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.
