Protect Your Home
Home insurance NZ. Is your home insured for what it would actually cost to rebuild?
Most New Zealand homes are underinsured. Building costs have jumped, but the number on your policy probably has not kept up. If something happens and your cover falls short, you pay the difference out of pocket.
We check your rebuild figure against current construction costs, read the policy wording so you do not have to, and make sure your cover actually keeps pace. Every policy includes your Natural Hazards Commission levy, and every client gets a free review at renewal.
What is home insurance in NZ?
Home insurance is a policy that protects the physical structure of your home against damage from insured events. In New Zealand, this covers the house itself, permanent fixtures and fittings such as fixed floor coverings, built-in cabinetry, driveways, fences, retaining walls, and other structures fixed to the land. It is separate from contents insurance, which covers furniture, appliances, and personal belongings inside the home. Most homeowners need both.
NZ home insurance operates on a "sum insured" basis: you nominate the maximum your insurer will pay to rebuild your house if it suffers a total loss. Getting this figure right is critical, and it is one of the main reasons homeowners choose to work with a broker. If you have a mortgage, your lender will require home insurance for the full rebuild value. Even without a mortgage, shouldering the entire rebuild cost yourself after an earthquake, storm, or flood is a risk most New Zealanders cannot afford to take.
Home insurance policies in NZ are underwritten by established insurers with the financial capacity to pay claims even after large-scale natural hazard events, as proven through the Canterbury earthquakes and Cyclone Gabrielle. Whether your property is a standard suburban house, a lifestyle block, or a multi-unit dwelling, the right policy makes sure your home is covered for what it would actually cost to rebuild.
What does home insurance cover?
A standard home insurance policy covers a wide range of events that can affect your home.
Fire and smoke damage
Fire can destroy a home completely. Your policy covers the rebuild costs after fire damage up to your sum insured, including damage caused by smoke, heat, and water used in firefighting. Whether the fire starts inside your house or spreads from a neighbouring property, you are covered.
Natural hazards and disaster
New Zealand's exposure to natural hazards makes this cover essential. Your policy protects against earthquake, volcanic eruption, hydrothermal activity, tsunami, landslide, and natural landslip. The Natural Hazards Commission (Toka Tu Ake) levy is built into your premium and provides a first layer of cover, with your private insurer covering the balance up to your sum insured.
Storm and flood damage
Storms, high winds, hail, and flooding can cause serious damage to your home's structure, roof, glass, and cladding. Your policy covers repair or rebuild costs including debris removal and site clearance. Some policies have flood sub-limits in high-risk areas, so we check the policy wording and flag any limitations before you commit.
Theft and burglary
If your house is damaged during a break-in, home insurance covers the repair cost - doors, windows, broken glass, locks, and walls. Many policies also cover lock replacement and new house keys after a burglary, so your home stays secure. Stolen belongings are claimed under your contents insurance policy.
Accidental damage
Accidental damage covers sudden, unintended events - a burst pipe flooding your home, a tree falling onto your roof, or a vehicle hitting your fence. This is one of the most commonly claimed benefits and can include damage to fixed floor coverings, internal walls, and plumbing from sudden pipe failure.
Temporary accommodation
If an insured event makes your home unliveable, your policy covers reasonable temporary accommodation costs while repairs or rebuilding are completed. This might mean renting another house or staying in serviced accommodation for a specified period. We will walk you through the limits that apply.
Legal liability
Home insurance typically includes legal liability cover, protecting you if someone is injured on your property or your home causes damage to a neighbour's house. For example, a tree falling from your land onto a neighbouring roof would be covered under legal liability. Check the policy wording for specific limits and conditions.
Standard home insurance policies typically exclude gradual damage, wear and tear, poor maintenance, and pest damage. Some policies also have specific sub-limits for glass breakage or certain natural hazards. We walk you through the full exclusions in the policy wording so there are no surprises at claim time.
Hidden gradual damage deserves special attention. This refers to deterioration that happens slowly and is not immediately visible - for example, a plumbing leak behind a wall that causes timber to rot, or moisture seeping through a failed pipe joint and damaging the framing. Because hidden gradual damage is not caused by a sudden event, many house insurance policies exclude it. However, some insurers offer optional cover or include it within certain policy tiers. Ask your broker whether your policy covers hidden gradual damage, as the cost of undetected plumbing leaks can be substantial.
EQC and natural hazard cover explained
New Zealand's exposure to natural hazards - earthquakes, volcanic activity, flood, landslide, and severe storms like Cyclone Gabrielle - makes robust disaster cover non-negotiable. NZ uses a two-tier system: the first layer comes from the Natural Hazards Commission (Toka Tu Ake, formerly EQC), a Crown entity. The second layer comes from your private insurer. Understanding how these layers protect your home is essential.
How the EQC levy works
Every home insurance policy in NZ includes a Natural Hazards Commission levy, collected by your insurer as part of your premium. In return, the Commission covers natural hazard loss to your house up to the EQC cap per dwelling per event. This includes earthquake, natural landslip, volcanic eruption, hydrothermal activity, and tsunami. Storm and flood damage are covered directly by your private insurer.
EQC cover is only available while you hold a current home insurance policy. If your policy lapses, you lose your entitlement - one reason maintaining continuous cover is critical.
What EQC covers vs what your insurer covers
If the rebuild costs after a natural hazard event exceed the EQC cap, your private insurer covers the remaining loss up to your nominated sum insured. This "top-up" cover is crucial because many homes cost significantly more than the cap to rebuild. Without adequate cover, you fund the shortfall yourself - a situation thousands of Canterbury homeowners faced during the 2010-2011 earthquakes.
We check whether your cover provides enough above the EQC cap, factoring in current construction costs, demolition, professional fees, and compliance upgrades.
Getting it right
Your sum insured matters more than your premium
Since NZ moved to sum insured policies, the homeowner nominates the maximum rebuild figure. If your sum insured is too low when you claim, you face a shortfall out of pocket. This is underinsurance - one of the biggest financial risks for NZ homeowners. Construction costs have risen sharply, and many people have not updated their sum insured to reflect current rebuild costs, especially after completing renovations.
Some policies offer SumExtra, which provides an additional buffer above your nominated sum insured. While SumExtra provides helpful headroom, it is not a substitute for getting your base figure right. Think of it as a safety margin, not a shortcut.
How to calculate your sum insured
Your sum insured should reflect the total rebuild costs if your house were completely destroyed - not the market value or government valuation. It should include demolition and debris removal, site clearance, council and resource consent fees, professional fees (architects, engineers, project managers), building code compliance upgrades, and inflation escalation during the rebuild period.
A sum insured calculator like the Cordell Sum Sure Calculator (by CoreLogic) gives a starting estimate based on your home's size and construction type. However, calculators have limitations for unusual builds, heritage homes, lifestyle blocks, or properties with difficult site access. For a more accurate figure, get a valuation from a registered quantity surveyor. Always update your sum insured after renovations - adding a room, upgrading the kitchen, or converting a garage all increase your rebuild costs.
NZ residential building costs have risen more than 35% since 2019. A figure that was accurate three years ago could leave you tens of thousands short today.
Common sum insured mistakes
Using market value instead of rebuild costs
Your home's sale price includes land value, which is irrelevant for insurance. Rebuild costs include demolition, consents, and professional fees that are not part of the sale price. These are completely different numbers.
Forgetting demolition and consent costs
Before you can rebuild, the damaged structure must be demolished, debris removed, the site cleared, and council consent obtained. These costs add significantly to the total and are often overlooked.
Not updating after renovations or inflation
Building costs have increased substantially in NZ. If you set your sum insured years ago, or completed renovations without updating your cover, there is a good chance you are underinsured. Annual review is essential.
Ignoring compliance upgrade costs
If your home was built under older building codes, a rebuild may need to meet current standards. Upgrading insulation, seismic bracing, or accessibility requirements can add meaningfully to the total cost.
Factors that affect your home insurance premium
Insurers assess several risk factors when pricing your house insurance premium. Knowing what drives your premium gives you levers to pull when the price feels too high.
Location and natural hazard zone
Properties in areas prone to flooding, liquefaction, or seismic activity attract higher premiums. Proximity to the coast, rivers, and known fault lines all factor into the insurer's natural hazard risk assessment.
Construction type and materials
Timber-framed homes, brick and tile, concrete block, and steel-framed buildings each carry different risk profiles. The roof material, cladding type, and foundation design all influence the premium.
Sum insured and rebuild costs
Higher rebuild costs mean a higher sum insured and a higher premium. However, reducing your sum insured to save on premium is a false economy if it leaves you paying the gap out of pocket when you claim.
Age and condition of the house
Older homes may have outdated wiring, ageing plumbing, or deteriorating roofing that increases claim risk. A well-maintained house with modern systems helps keep premiums manageable.
Security features and excess level
Deadbolts, alarm systems, and security cameras can reduce your premium. Choosing a higher excess will also lower your annual cost, but make sure you can afford the excess when you need to claim.
Claims history and occupancy
A history of frequent claims will increase your premium. Owner-occupied homes are typically cheaper to insure than rental properties because owner-occupiers tend to maintain the property more attentively.
We help you balance premium cost against level of cover. A small adjustment - increasing your excess, adding a security system, or bundling home and contents insurance - can produce meaningful savings without compromising protection.
What happens if you need to claim?
Knowing the claims process in advance makes a stressful situation easier to navigate. Here is what to expect if something happens to your home.
Report the damage immediately
Contact your insurer as soon as possible. Take photos and video before starting any clean-up. If the property is unsafe, evacuate first. Note the date, time, and circumstances, and keep damaged items for the insurer to inspect.
Prevent further loss
You have a duty to take reasonable steps to prevent further damage - covering a damaged roof with a tarp, turning off water to stop a pipe leak, or boarding up broken glass. Keep receipts for emergency materials, as these costs are typically recoverable.
Lodge your claim
Submit your claim with all supporting documentation and evidence. For natural hazard claims, the Natural Hazards Commission component is coordinated through your insurer.
Assessment and settlement
The insurer assesses the claim, which may involve sending a loss adjuster to inspect the damage. If the assessment does not seem fair, you have the right to dispute it. Once approved, the settlement is paid per the policy wording, less any applicable excess.
Rebuild or repair
Depending on the extent of the damage, the insurer may arrange repairs through approved contractors or pay out for you to manage the rebuild yourself. For a full step-by-step guide, see our guide to making an insurance claim.
Why use a broker for house insurance?
You can buy home insurance directly, so why use a broker? Because when you buy direct, nobody checks your rebuild figure, nobody reads the exclusions, and nobody makes sure your cover keeps up as building costs rise. We work for you, not the insurer.
Annual sum insured review
At every renewal, we review your sum insured against current rebuild cost data so your cover keeps pace with rising building costs - a service you do not get buying direct.
Policy wording explained
Insurance policy wording is dense and full of legal language. We read it and tell you what is actually covered, what is not, and where the gaps are.
Underinsurance checks
We check your sum insured, replacement values and cover limits to make sure there are no gaps. Many Kiwi homeowners are underinsured without knowing it - we make sure you are not one of them.
Ongoing personal service
Renovations, extensions, or lifestyle changes all affect your cover. We are available year-round to adjust your policy. Let us know before starting renovations so your sum insured stays accurate.
Renewal management
Before your policy renews, we review the terms, check for changes in cover or premium, and contact you to discuss options. You never miss a renewal deadline or get caught off guard by a premium increase.
No extra cost to you
Broker services are included in the premium. You pay the same as buying direct but get professional advice and ongoing support year-round. No additional fee.
Full replacement vs functional replacement cover
Full replacement rebuilds your house to the same size, design, and specification as the original, up to your sum insured. If you have a villa with native timber framing and a tiled roof, full replacement aims to rebuild with equivalent materials. This is recommended for most homeowners, particularly those with character homes or properties where rebuild costs are high.
Functional replacement rebuilds your home to a similar standard and function but not necessarily the same materials, layout, or floor coverings. A three-bedroom house is replaced with a three-bedroom house of similar size, but using modern materials and a different floor plan. The premium is lower, but the outcome may not match what you had before.
We explain the practical differences in the context of your specific home and help you choose the right balance of protection and affordability.
Common home insurance questions
What does home insurance cover in New Zealand?
Your dwelling is covered against fire, storm, flood, earthquake, volcanic eruption, tsunami, landslide, theft, and accidental damage. It typically includes glass breakage, lock replacement, legal liability, and temporary accommodation if your home becomes unliveable. Contents insurance is separate.
How does EQC work with home insurance?
The EQC levy is built into your premium. It covers natural hazard damage up to the cap. Anything above that is covered by your private insurer up to your sum insured. No current policy means no EQC cover.
How do I calculate my sum insured?
Start with the Cordell Sum Sure Calculator for an estimate, or get a quantity surveyor for a precise figure. Include demolition, consents, professional fees, and compliance upgrades. Update it after any renovations.
What is the difference between full replacement and functional replacement cover?
Full replacement rebuilds to the same size, design, and materials. Functional replacement rebuilds to a similar standard but not necessarily the same materials or layout. Full replacement costs more but gets you closer to what you had.
What factors affect my home insurance premium?
Location, natural hazard zone, construction type, age, claims history, excess level, and security features. Some of these you can change (excess, security) and some you cannot (location, age).
Why should I use a broker instead of buying direct?
We check your rebuild figure annually, explain exclusions in plain language, and make sure your cover keeps pace with rising building costs. It costs you nothing extra - broker fees are included in the premium.
What happens if I am underinsured?
You pay the gap out of pocket. If your rebuild costs $800,000 and you are insured for $600,000, that $200,000 shortfall is yours. It is one of the biggest financial risks NZ homeowners face.
How do I make a home insurance claim?
Contact your insurer as soon as possible. Take photos, secure the property to prevent further damage, and keep receipts for any emergency repairs. See our full claims guide for the step-by-step process.
You might also need
Home insurance covers the house. Contents insurance covers everything inside it - furniture, appliances, and personal belongings. Most homeowners bundle both, along with car insurance, through a single broker. We also arrange boat, motorcycle and trailer insurance.
Contents Insurance
Cover your belongings inside and outside the home
Car Insurance
Comprehensive, third-party, or fire and theft
Boat Insurance
Hull, motor and trailer cover for NZ waters
Motorcycle Insurance
Comprehensive cover for bikes and scooters
Trailer Insurance
Protect your trailer against theft and damage
Find out if your cover actually stacks up
Get a clear picture of what it would cost to rebuild your home today - and whether your current cover matches. We will review your numbers, explain your options, and give you a straight answer.
Takes about 3 minutes.
No fees. No obligation. Takes 3 minutes.