Auckland Insurance Broker
Home insurance in New Zealand
Are you insured for what it would cost to rebuild?
Cover falls behind quietly. Building costs move. The number on your policy may not, and if a claim lands short, you pay the difference out of pocket.
We check your rebuild figure against current construction costs and read the policy wording so you do not have to. Home insurance policies are priced off the sum insured, so that number is the one to get right. Your cover should keep pace with what builders charge today, not what they charged three years ago, and we review it with you at every renewal.
What is home insurance?
Home insurance covers the structure of your house against damage from insured events. The dwelling. Fixed floor coverings, built-in cabinetry, driveways, fences, retaining walls, anything else fixed to the land. Furniture and belongings sit under contents insurance instead. Own the house and live in it, and you usually need both.
Every policy runs on a sum insured. You name the maximum your insurer will pay to rebuild after a total loss. Set it low and the shortfall is yours. That one number is why people come to a broker. Got a mortgage? Your lender will want cover for the full rebuild value. Even without one, carrying the whole rebuild cost after an earthquake or flood is a risk few households can absorb.
The insurers behind these policies hold enough capital to pay claims after a large event. Canterbury and Cyclone Gabrielle tested that. A standard suburban house, a lifestyle block, a multi-unit dwelling: the right policy matches the rebuild cost of the place you own.
The policy covers the structure: weatherboards, joinery, roof, and everything fixed to the land.
Coverage
What does home insurance cover?
Standard policies cover a broad range of events. Exact inclusions depend on your insurer and the tier of cover you choose.
Fire and smoke damage
A house fire can mean a total loss. Policies typically cover rebuild costs up to your sum insured, including damage from smoke, heat, and water used in firefighting. Does not matter whether the fire starts inside your house or spreads from next door. Fire cover is standard.
Natural hazards and disaster
If you own a home in Wellington or Christchurch, you already know why this matters. It applies in Dunedin and Hamilton too. Policies typically protect against earthquake, volcanic eruption, hydrothermal activity, tsunami, landslide and natural landslip. The Natural Hazards Commission Toka Tū Ake (formerly EQC) levy sits inside your premium and pays the first layer. Your private insurer covers the balance, up to your sum insured.
Storm and flood damage
High winds, hail, storms and flooding can hammer your roof, glass, cladding and the structure underneath. Policies typically cover repair or rebuild, plus debris removal and site clearance. Some cap flood cover in high-risk areas. We check those sub-limits and flag them before you commit.
Theft and burglary
If your house is damaged during a break-in, home insurance typically covers the repair cost for doors, windows, broken glass, locks, and walls. Many policies also include 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
Burst pipe floods your kitchen. A tree lands on the roof. A car reverses into your fence. Accidental damage cover applies to sudden, unintended events like those. Depending on the policy, it may also cover fixed floor coverings, internal walls and plumbing damaged by sudden pipe failure.
Temporary accommodation
Where do you live if the house is uninhabitable? Many policies pay reasonable temporary accommodation costs while repairs or rebuilding run. A rental down the road. A serviced apartment for a set period. We walk you through the limits on your own wording.
Legal liability
Say a tree on your property falls onto your neighbour's roof, or a visitor is injured in your home. Legal liability cover, included in most policies, handles those situations. Limits and conditions vary. Check the wording, or ask us to walk you through it.
What is not covered? Gradual damage, wear and tear, poor maintenance and pest damage are standard exclusions. Some policies also set sub-limits for glass breakage or certain natural hazards. We go through the full exclusion list with you, so nothing surprises you at claim time.
Hidden gradual damage sits behind a wall for months before anyone sees it. Deterioration you cannot see yet. A plumbing leak rots the timber over months. Moisture from a failed pipe joint quietly damages the framing. None of that is a sudden event, so many house policies exclude it. Some insurers sell optional cover, or build it into certain tiers. Ask. By the time a leak shows through the gib, the repair is major.
Two Layers Of Cover
What does the Natural Hazards Commission (formerly EQC) cover?
The Natural Hazards Commission Toka Tū Ake, which replaced EQC on 1 July 2024, covers natural hazard damage to your home up to $300,000 plus GST ($345,000 including GST) per dwelling, per event, plus cover for your residential land. NHCover only applies while you hold a current private home insurance policy that includes fire cover.
Earthquakes in Wellington and Christchurch. Volcanic activity in the central North Island. Flooding in Auckland and the Bay of Plenty. Each one is priced into your cover, and each one splits the same way: the Natural Hazards Commission, a Crown entity, pays first, and your private insurer takes the rest.
After a storm or flood, NHCover applies to the land only. The house itself rides on your private policy.
- How the natural hazards levy works
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Your insurer collects a Natural Hazards Commission levy as part of your premium, capped at $480 plus GST a year. Every home policy includes it. In return, NHCover protects your house against earthquake, natural landslip, volcanic eruption, hydrothermal activity and tsunami, up to the cap per dwelling per event.
NHCover only exists while you hold a current home policy that includes fire cover. Let the policy lapse and the government layer lapses with it.
- What NHC covers vs what your insurer covers
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If the rebuild costs after a natural hazard event exceed the cap ($345,000 including GST), your private insurer covers the remaining loss up to your nominated sum insured. A rebuild can cost well above the cap. Without cover above it, you fund the gap. The Canterbury earthquakes, still New Zealand's costliest insured event, are the reference point, as our natural disaster statistics show.
We check whether your cover provides enough above the NHC cap, factoring in current construction costs, demolition, professional fees and compliance upgrades.
- Storm and flood claims split in two
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For storm and flood events, the Natural Hazards Commission covers damage to your residential land only. Damage to the house itself is handled entirely by your private insurer. For earthquake, landslip, volcanic activity and tsunami, NHCover applies to both the home (up to the cap) and the land.
That split is where flood cover in your private policy does the work. After a flood, the government scheme covers the damaged land under the house. Everything from the floorboards up rides on your own policy.
- Your land, and what NHC does not cover
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The Natural Hazards Commission covers the residential land under your home, land within 8 metres of it, and land under or supporting your main access way up to 60 metres from the house. Private home policies generally exclude land, so NHCover is usually the only insurance a household holds on it.
NHCover does not include household contents. EQC stopped covering contents on 1 July 2019, so natural hazard damage to your belongings goes under your contents insurance instead.
Getting it right
What happens if your sum insured is set too low?
You pay the shortfall. Since the industry moved to sum insured policies, the homeowner names the maximum rebuild figure. Too low, and the difference comes out of your own pocket. Construction costs have climbed. Some renewal figures have not moved with them, especially after a renovation.
Some policies add a buffer above your nominated figure. You might see it called a sum insured extension or a top-up. Useful headroom. Not a substitute for a correct base figure.
How to calculate your sum insured
Your sum insured should reflect what a rebuild would cost if the house were completely destroyed. Land value is a separate question, and the council valuation answers a different one. The number needs to cover demolition, debris removal, site clearance, council and resource consent fees, professional fees (architects, engineers, project managers), building code compliance upgrades, and inflation during the rebuild period.
Our free sum insured calculator gives a starting estimate from your home's size, construction type, build quality and location. The Cordell Sum Sure Calculator (by CoreLogic) is the other one NZ insurers point people to. Calculators have limits. Unusual builds, heritage homes, lifestyle blocks and sites with difficult access all throw the numbers off. For a firmer figure, pay a registered quantity surveyor. Update the number after any renovation. A new room, a kitchen upgrade or a garage conversion all push the rebuild higher.
Residential building costs have climbed hard since 2019. A figure that was right three years ago can leave you short today.
Common sum insured mistakes
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Using market value instead of rebuild costs
Your home's sale price includes land, and land is not insured. A rebuild also carries demolition, consents and professional fees that never appear in a sale price.
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Forgetting demolition and consent costs
Before you rebuild, the damaged structure comes down, the debris goes, the site gets cleared and the council has to consent it. Those costs add up, and they are easy to forget.
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Not updating after renovations or inflation
Building costs have risen sharply, most of all where demand for trades is highest. A figure set years ago, or set before a renovation, is probably short. That is why we check the number at each renewal.
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Ignoring compliance upgrade costs
A house built to older codes may have to meet current ones when it is rebuilt. Insulation, seismic bracing, accessibility. Each one adds to the total.
Buying a house
How do you confirm a house is insurable before going unconditional?
Ask an insurer or a broker to quote the exact address during due diligence, before you go unconditional. Insurers assess flood, landslip and earthquake risk property by property. Some decline what others accept. Written confirmation of cover is the proof you need.
Insurability is a live question in flood-prone parts of Auckland, on Wellington hillsides and on Christchurch land with earthquake history. A house that cannot be insured usually cannot be mortgaged either, because lenders want cover in place before settlement. Finding that out after you go unconditional puts your deposit at risk.
Kapi Insurance runs that check as part of arranging cover for a purchase. We take the address to the insurers we work with, flag special terms or higher excesses early, and get you an answer before your conditions expire.
Before you go unconditional
Read the LIM for flood plain, landslip or coastal hazard notations, since insurers price against the same information
Get a quote for the exact address in writing, not a suburb-level estimate
Ask the vendor about past insurance claims on the property, including any natural hazard claims
Allow extra time for older homes, monolithic cladding, or known hazard zones, where insurers may ask more questions
Line up cover to start at settlement, because your lender will require it before drawdown
Pricing
What affects your home insurance premium?
Several risk factors go into the price. Know what drives the number and you have levers to pull when it feels too high.
- Location and natural hazard zone
- Flood, liquefaction and seismic exposure all raise the price. So does proximity to the coast, a river or a known fault line. Insurers assess them property by property.
- Construction type and materials
- Timber frame, brick and tile, concrete block, steel frame. Each carries a different risk profile. Roof material, cladding and foundation design all move the premium.
- Sum insured and rebuild costs
- A higher rebuild cost means a higher sum insured and a higher premium. Cutting the sum insured to save money hands you the gap at claim time.
- Age and condition of the house
- Older homes may have outdated wiring, ageing plumbing or a roof near the end of its life. Those raise claim risk. A well-maintained house with modern systems prices better.
- Security features and excess level
- Deadbolts, alarm systems and security cameras can bring the premium down. A higher excess will too. Make sure you can find the excess on the day you claim.
- Claims history and occupancy
- Frequent claims push the premium up. Owner-occupied homes usually insure for less than rentals. Let the property out and you need landlord insurance, not a standard house policy.
Sometimes a small change does the work. Raise the excess. Fit an alarm. Bundle house and contents insurance. We help you find the version that keeps the cover you need.
If It Goes Wrong
What happens if you need to claim?
Nobody wants to think about claiming. Knowing the order of events before it happens takes the panic out of it.
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Report the damage immediately
Contact your insurer straight away. Take photos and video before you start cleaning up. If the property is unsafe, get out first. Note the date, the time and what happened. Keep the damaged items for the assessor to inspect.
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Prevent further loss
Your policy requires reasonable steps to stop further damage. Tarp the roof. Turn the water off. Board the broken glass. Keep every receipt for emergency materials, because those costs are usually recoverable.
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Lodge your claim
Submit the claim with supporting documentation. For a natural hazard claim, the Natural Hazards Commission part is coordinated through your insurer.
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Assessment and settlement
Your insurer assesses the claim and may send a loss adjuster to inspect the damage. If the assessment looks wrong, you can dispute it. Settlement is paid under the policy wording, less the excess.
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Rebuild or repair
From here it depends on the extent of the damage. Your insurer may arrange repairs through approved contractors, or pay out so you can manage the rebuild. For the full process, see our guide to making an insurance claim.
Working With Us
Why use a broker for house insurance?
You can buy home insurance direct. Buy direct and nobody checks your rebuild figure or reads the exclusions with you. Kapi Insurance does both, and the insurer pays us, so your premium matches what you would pay going direct.
Annual sum insured review
Every renewal, we check your sum insured against current rebuild cost data. Rising building costs get caught before they turn into a gap.
Policy wording explained
Policy wording is dense. We read it and tell you plainly what is covered, what is not, and where the holes sit.
Underinsurance checks
We compare your sum insured, replacement values and cover limits to find gaps. If the figure is short, you hear about it before a claim does.
Ongoing personal service
Renovation, extension, a new tenant. Each one changes the cover. Ring us before the work starts and the sum insured stays accurate.
Renewal management
Before your policy renews, we review the terms and any change in cover or premium, then talk the options through with you. Nothing lands on the date unanswered.
How we're paid
The insurer pays us a commission, built into the premium. Your price matches buying direct, and you get the advice and the yearly review.
The Rebuild Promise
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. A villa with native timber framing and a tiled roof gets rebuilt with equivalent materials. We recommend it for most homeowners, especially character homes and places where rebuild costs run high.
Functional replacement works differently. The home comes back to a similar standard and function, with modern materials and possibly a different layout or floor plan. Three bedrooms for three bedrooms. The premium is lower, and the finished house may not match what you had.
We take the two wordings apart in front of you and show what each one would rebuild.
FAQ
Common home insurance questions
The questions homeowners put to us most often, answered plainly. If yours is not here, request a callback and we will get back to you.
Get a Free QuoteWhat does home insurance cover?
Policies typically cover your dwelling against fire, storm, flood, earthquake, volcanic eruption, tsunami, landslide, theft, and accidental damage. Many also include glass breakage, lock replacement, legal liability, and temporary accommodation if your home becomes unliveable. Exact inclusions depend on your insurer and policy tier. Contents insurance is separate.
How does EQC work with home insurance?
The natural hazards levy (formerly the EQC levy) is built into your premium. It funds the Natural Hazards Commission Toka Tū Ake, which covers natural hazard damage to your home up to $345,000 including GST. Anything above that is covered by your private insurer up to your sum insured. No current policy means no NHCover.
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?
Kapi Insurance checks your rebuild figure annually, explains exclusions in plain language, and makes sure your cover keeps pace with rising building costs. The insurer pays us a commission, and your premium is the same as going direct.
What happens if I am underinsured?
You pay the gap out of pocket. If your rebuild costs more than your sum insured, that shortfall is yours. It is one of the biggest financial risks homeowners face, whether you are in Dunedin or Auckland.
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.
Is my house still insured if it is unoccupied for more than 60 days?
Most home policies change once no one has lived in the house for 60 consecutive days. Depending on the insurer, that can mean a higher excess from day 61, or cover only continuing for a further period with conditions like locked doors, cleared mail and regular checks. Tell your insurer before any long absence and get the arrangement in writing.
Does running a business from home affect my house insurance?
A home office generally does not affect house insurance. Anything beyond that, such as clients visiting, stock stored on site or trade work in a shed, needs to be disclosed and agreed with your insurer, because policies exclude loss and liability arising from undeclared business use of the home.
Can a house be insured twice?
Two policies on one house does not mean two payouts. Policy wordings either exclude loss that another policy covers or split the claim between insurers, so doubling up wastes premium. Double insurance usually happens around settlement day or when couples merge households. If you spot it, cancel one policy and ask about a refund.
Who insures the building in an apartment or unit title complex?
The body corporate insures the building. Under the Unit Titles Act 2010, a body corporate must insure all buildings and improvements to their full insurable value, and each owner pays a share through levies. You still need your own contents insurance, and it pays to check the body corporate policy and its excesses before you buy.
You might also need
Home insurance covers the house. Contents insurance covers what is inside it: furniture, appliances, personal belongings. Renting the property out? That takes landlord insurance. House and contents usually sit on one renewal, and the car insurance often joins them. We also arrange boat, motorcycle and trailer insurance.
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Landlord Insurance
Loss of rent, tenant damage and meth cover
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Contents Insurance
Cover your belongings inside and outside the home
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Car Insurance
Comprehensive, third-party, or fire and theft
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Boat Insurance
Hull, motor and trailer cover for local waters
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Motorcycle Insurance
Comprehensive cover for bikes and scooters
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Trailer Insurance
Protect your trailer against theft and damage
Find out if your cover stacks up
What would it cost to rebuild your home today? Does your current cover match that number? Send us both figures and we will tell you where the gap is.
Quick quote, no obligation.
Kapi Insurance Brokers, Mount Eden, Auckland.