Renting out a property? The right insurance isn’t just smart—it’s uber important. Regular house insurance doesn’t cover the unique risks landlords face, but landlord insurance does. In this blog, we’ll explore what landlord insurance covers, why it’s worth considering, and what it might cost in New Zealand.
What’s the difference between landlord insurance and house insurance?
Landlord insurance goes beyond regular house insurance. While house insurance protects your home and some personal belongings, landlord insurance is designed specifically for property owners renting out their homes. It covers risks like tenant-related damage and lost rental income, things regular home insurance doesn’t usually cover.
Think of it this way: Imagine if a tenant suddenly couldn’t pay rent due to financial hardship. With landlord insurance, you’d be covered for that lost income, so your finances stay on track. Plus, landlord insurance often includes legal liability coverage in case someone is injured on your property.
Looking to save a bit on your landlord insurance? We’ve got some practical ways to cut down costs—check out our blog, 8 Budget Hacks for House Insurance, for a few clever ideas you can use today.
Why do you need landlord insurance?
It’s not legally required, but landlord insurance can save you stress and expense. Without it, you might end up paying out of pocket for tenant damages, lost rent, or even legal claims if someone’s injured on the property. Given New Zealand’s natural disaster risks, like earthquakes and floods, protecting your rental income provides peace of mind.
Ask yourself: Could you handle the financial hit if an earthquake left your property empty and needing repairs? For many landlords, rental income is crucial. Landlord insurance helps keep that income steady when unexpected events occur.
What does landlord insurance cover?
Landlord insurance varies, but here are the key areas most policies cover:
Property repairs or rebuilding costs: Covers repairs after fires, natural disasters, or accidental damage. Some policies even include architect and engineer fees for large rebuilds.
Loss of rental income: Landlord insurance often covers lost rent (sometimes for up to a year) if damage from events like fire or flooding makes your property uninhabitable.
Contents insurance for landlords: Covers items you own in the property, like appliances and fixtures. It doesn’t cover tenants’ belongings, so encourage them to get their own contents insurance.
Intentional damage by tenants: If a tenant causes intentional damage, landlord insurance can often cover repairs. Be sure to check the terms to see what counts as “intentional” vs. “accidental” damage.
Legal liability: Protects you if someone is injured on your property due to an issue you’re responsible for. Coverage amounts vary, but some policies go as high as $20 million.
Methamphetamine contamination: Meth contamination is a real risk for Kiwi landlords. Many policies now cover clean-up costs if a tenant contaminates the property.
Pro tip: Don’t just insure based on your purchase price—use a rebuild calculator to get an accurate estimate, especially in high-risk areas.
Something to think about: Could you afford a lawsuit if a visitor slipped on an unlit staircase? Liability cover has you protected for incidents like this.
What isn’t covered by landlord insurance?
Landlord insurance doesn't cover everything. Here are some common exclusions:
Gradual damage from mould or leaks: Damage that occurs slowly, like mould growth or leaks, isn’t usually covered. Regular maintenance is essential in preventing this kind of damage.
Cleaning and rubbish removal: Insurance typically does not cover leftover rubbish removal from tenants. This cost will need to be covered through the tenant's bond or paid out-of-pocket.
Tenants’ personal belongings: Your policy covers only items you own in the rental. Tenants should have their own insurance for personal belongings.
How much does landlord insurance cost?
The cost of landlord insurance varies based on the provider, property type, sum insured, excess chosen, and location. Properties in areas with higher earthquake or flood risk, like Wellington or Christchurch, may face higher premiums. Here are a couple of examples:
Mount Eden, Auckland: sum insured $1.2 million
Excess ($) | Lowest cost ($) | Average cost ($) | Highest cost ($) |
$500 | $2,086 | $3,068 | $3,481 |
Central Christchurch: sum insured $1.3 million
Excess ($) | Lowest cost ($) | Average cost ($) | Highest cost ($) |
$500 | $5,188 | $6,165 | $9,817 |
Source: Quashed
Pro tip: Check if your property is in a high-risk area. Many councils provide flood-prone area maps, which can help you assess potential risks. Curious why insurance premiums seem to be climbing? We’ve broken down some key reasons in our blog, Why House Insurance Premiums Are Increasing.
Why choose Quashed for landlord insurance?
Being a landlord comes with plenty to juggle—Quashed makes insurance simple and stress-free. Here’s what makes us stand out:
Compare top providers in minutes: See side-by-side comparisons from leading insurers.
All your policies in one place: Manage multiple insurance policies effortlessly with our easy-to-use dashboard—stay on top of what’s covered, all in one spot.
Smart alerts, smarter savings: We track the market for you and send alerts when better deals are available, helping you cut costs and maximise cover.
Upfront, no surprises: Get clear insights on premiums and excess so you know exactly what you're paying—no hidden costs.
Protect your rental and your income—sign up with Quashed today.
Further Reading
Want to get the most out of your insurance? Check out these helpful reads:
Comparing Property Websites: A quick guide to popular NZ property info sites.
House Insurance Guide: The must-knows for protecting your home.
Contents Insurance Guide: What’s covered and why it matters.
Average Insurance Costs: See how much people are paying.
Home Upgrades & Insurance: Find out if renovations impact your premiums.
Comparing House Quotes: Tips to get the best deal on house insurance.
Key House Insurance Tips: What to consideration in getting or reviewing a policy.
Contents Insurance Costs: A quick look at what you might pay.
FAQs
Do I need contents insurance if I already have building insurance for my rental property?
Building insurance covers the structure of your rental, but it doesn’t protect items within the property that you provide for tenants, such as appliances, carpets, or curtains. Landlord contents insurance can help cover these items against damage, theft, or wear and tear from tenants. Coverage may vary, so it’s important to check with your insurer for specific details.
What does landlord insurance typically cover in New Zealand?
Landlord insurance generally covers:
Loss of rent if tenants default or the property becomes uninhabitable.
Tenant damage, including accidental or intentional damage.
Liability coverage protects you if tenants or visitors are injured on the property.
Chattels cover for fixed items like ovens and carpets. Check with your insurer for specific inclusions and exclusions.
Can I add my rental property under my personal contents insurance?
Some insurers may allow you to include rental property contents under your personal contents insurance, but it's not common. Typically, landlord-specific insurance is required to cover rental-related risks, such as loss of rent or tenant damage. Always confirm with your insurer before assuming coverage.
What’s the difference between landlord insurance and standard home insurance?
Landlord insurance provides additional protection tailored to rental properties, covering risks such as:
Loss of rental income
Tenant-caused damage
Legal liability specific to tenancies Standard home insurance focuses on owner-occupied properties and doesn't cover rental-specific risks.
Is it normal for landlord insurance to renew monthly instead of annually?
Some insurers offer monthly-renewing policies, which allow for flexibility but can lead to changes in terms and pricing each month. Most landlords prefer annual policies for more stability. If you’re offered a monthly renewal, check if it aligns with your long-term budgeting and risk management goals.
What documents do I need to make a landlord insurance claim?
Typical documents required for a landlord insurance claim include:
Tenancy agreement to prove the lease terms.
Tenancy Tribunal ruling (if applicable) to support claims for rent arrears or damages.
Proof of loss, such as photos or receipts for damaged items.
Financial records showing lost rent due to tenant default.
Does body corporate insurance cover landlord-related issues in an apartment?
Body corporate insurance usually covers the building’s structure and common areas, but it may not include coverage for landlord-specific risks like loss of rent or tenant damage to chattels. Check your body corporate agreement and consider additional landlord insurance to fill any gaps.
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.
