Home and Contents Insurance in NZ

Home and contents insurance in New Zealand work differently from a lot of other countries, mainly because of how natural hazard cover is built in. Here's what actually matters when you're insuring a new place.

Sum insured, not automatic replacement

Most NZ house insurance runs on a "sum insured" model -- you tell the insurer what it would cost to rebuild your home, and that figure becomes your cover limit, not the property's market value. Get this wrong and you could end up under-insured after a genuine loss. ICNZ's guide to sum insured and Sorted's guide to estimating rebuild cost are both worth reading before you commit to a figure -- insurer-provided calculators are a starting point, not the final word, especially for an unusual or older property.

Contents insurance is a separate choice: new-for-old cover replaces items regardless of age or wear, while indemnity cover only pays what the item was actually worth at the time, after depreciation. Most standard NZ contents policies are new-for-old, but it's worth confirming which you're being sold.

Natural hazards cover is automatic, but limited

If you hold private home insurance, Natural Hazards Commission Toka Tū Ake -- formerly the EQC -- automatically covers the first $300,000 (plus GST) of damage to your building from a natural hazard like an earthquake or flood, funded through a levy already built into your premium. You don't apply for this separately.

Contents are a different story: natural hazard damage to your belongings is covered only by your own contents insurance, not by Natural Hazards Cover at all. If you skip contents insurance to save money, your possessions are genuinely uninsured against every natural hazard, not just partially.

Before you buy

1. Set your sum insured based on rebuild cost, not purchase price or market value -- these can be very different numbers, especially in a hot property market.
2. Confirm whether your contents policy is new-for-old or indemnity -- the difference matters a lot if you ever need to claim.
3. Ask specifically what's excluded, not just what's included -- flood, landslip, and older wiring or plumbing are common areas where cover varies between insurers.
4. Compare more than one insurer -- premiums for the same property can vary meaningfully, especially in earthquake-prone areas.

This guide is general information, not advice on your specific situation -- an insurance adviser or your insurer directly can confirm what's right for your circumstances.