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If your mortgage repayments have gone up and your house insurance is due for renewal, the goal is to reduce your monthly costs without leaving your home, finances or family exposed to a major loss.

In New Zealand, there are several ways to tackle this. You may be able to save money by reviewing your mortgage structure, comparing insurance policies and adjusting your excess, rather than simply cutting back on cover.

I'd approach it in this order.

1. Tackle your mortgage costs first

Your mortgage is likely one of your biggest household expenses, so even a small improvement can make a difference.

Check whether you can get a better interest rate

• Ask your current lender for a better rate. Check its available fixed-term rates and ask whether it can offer a more competitive rate when you refix.
• Compare other banks. A lower interest rate could reduce your repayments, although switching may involve legal fees, break costs or the loss of a cashback offer.
• Consider your fixed-rate term carefully. A shorter term may give you flexibility, but it also means you'll face interest-rate changes sooner. A longer term can provide more certainty.
• Ask about repayment options. If you're struggling to meet repayments, contact your lender early to discuss whether a temporary arrangement is available.

Don't overlook your loan structure

If you have multiple mortgage portions, check when each one comes up for refixing. You may have opportunities to improve your overall rate without restructuring your entire loan.

Be cautious about extending your mortgage term purely to reduce repayments. It can provide short-term breathing room, but you could pay considerably more interest over the life of the loan.

2. Shop around for house insurance before renewing

Don't automatically accept your renewal quote. Your existing insurer may no longer be the cheapest option, even if you've been with them for years.

Consumer NZ's February 2026 research found that comparing insurers could save some households around $550, depending on the property and policies compared. The savings vary, but it is worth checking. 【turn1search5】

Here's how to approach it.

Get at least three comparable quotes

Ask your current insurer and at least two other providers for quotes. Compare policies using the same:

• Building sum insured.
• Excess.
• Natural hazard and other major-event cover.
• Temporary accommodation benefits.
• Special features, such as retaining walls, garages, sheds and outbuildings, where relevant.

A policy that costs $400 less per year might be a good deal, but not if it leaves you with a substantial coverage gap.

Negotiate with your current insurer

Once you have a cheaper quote, contact your existing insurer and ask whether it can match or improve the price.

You could say:

"Our renewal premium has increased, and we're reviewing our household budget. We've found alternative quotes for similar cover. Can you review our premium and let us know whether there are any discounts or policy adjustments that could reduce the cost without leaving us underinsured?"

Also ask whether you can receive a discount for paying annually rather than monthly. Annual payment can be cheaper, although you need enough savings available to pay the lump sum.

Consider increasing your excess

Your excess is the amount you contribute towards an accepted claim.

For example, ask your insurer to quote premiums with excesses of $500, $1,000 and $2,000. The actual options available will vary by insurer and policy.

Before choosing a higher excess, ask yourself:

• Could we comfortably pay that amount from our savings after an unexpected event?
• How much would we save in premiums each year?
• Are there separate or higher excesses for particular events, such as earthquakes or other natural hazards?

A higher excess can make sense if you have an emergency fund. It is less suitable if it would leave you unable to afford repairs after a claim. 【turn1search6】

3. Protect the cover that matters most

This is where it pays to be careful. Some reductions save money without significantly changing your protection; others can expose you to enormous costs.

Keep your building sum insured realistic

Your building sum insured should reflect the estimated cost of rebuilding your house, not its market value.

Rebuilding costs can include:

• Demolition and removal of debris.
• Materials and labour.
• Professional fees, such as architects and engineers.
• Council consent and compliance costs.

Check that your sum insured is still realistic and that you understand how your policy calculates a claim. Don't simply reduce the amount to lower the premium.

The Insurance Council of New Zealand recommends checking your sum insured and reviewing any changes to your policy at renewal. 【turn1search4】

Understand your natural disaster cover

For most homeowners, this is particularly important.

New Zealand's Natural Hazards Commission Toka Tū Ake provides NHCover for eligible damage from events such as earthquakes, landslides, volcanic activity, tsunamis and certain other natural hazards. It generally applies when your home has a qualifying fire insurance policy.

For eligible residential building damage, NHCover generally provides up to $300,000 plus GST per home, with private insurance covering eligible losses above that amount, subject to the policy terms and limits. Some land damage is also covered, but the protection is limited. 【turn1search0】

Before changing your policy, check that you understand:

• Whether your policy includes fire cover and maintains eligibility for NHCover.
• How your private insurer covers eligible damage above the NHCover limit.
• Whether your policy covers additional costs associated with rebuilding.
• What applies to retaining walls, driveways, accessways and other structures on your property.

Don't assume that all damage to your land, gardens, fences or retaining walls will be covered.

You can read the official guidance at Natural Hazards Commission Toka Tū Ake.

Check temporary accommodation cover

If your home becomes uninhabitable after an insured event, you may need to pay for somewhere else to live while repairs or rebuilding take place.

Check how much your policy provides for temporary accommodation, how long the benefit lasts and which conditions apply.

This is particularly important if your mortgage will continue while you're also paying rent or other accommodation costs.

Review contents insurance separately

If you have contents insurance as well as house insurance, check whether you have the right level of protection for your belongings.

You might be able to reduce the contents premium by reviewing your sum insured and removing cover for items you no longer own. However, don't underestimate the cost of replacing everyday possessions such as furniture, clothing, appliances and electronics.

Check the limits for valuables, jewellery, bicycles and other expensive items. Some may require specific cover.

4. If comprehensive insurance is too expensive, explore a middle ground

If you've compared quotes and still can't afford comprehensive cover, ask your insurer about lower-cost policy options before cancelling.

For example, you could ask whether it offers:

• Basic or defined-event cover: This may protect against specified events, such as fire and theft, rather than the broader range of risks covered by comprehensive insurance.
• Fire-only cover: This provides a narrower level of protection but can preserve eligibility for NHCover.
• Fire and burglary cover: This may be a compromise if comprehensive insurance is unaffordable.

These options leave you exposed to risks that a comprehensive policy might cover, so check exactly what's excluded.

Consumer NZ recommends getting the highest level of cover you can afford that suits your property's needs. Even limited cover can be preferable to having no protection, but you should understand the financial consequences of any exclusions. Consumer NZ insurance guide

Important: If you have a mortgage, check your loan agreement and speak to your lender before reducing your cover. Your lender may require you to maintain particular levels of house insurance.

5. Look for savings elsewhere in your household budget

When mortgage repayments and insurance premiums rise together, it helps to consider the combined effect on your finances.

Here are a few additional things to check.

Expense	What to try
House insurance	Compare quotes and negotiate with your existing insurer.
Contents insurance	Review your sum insured and cover for items you no longer own.
Mortgage	Negotiate your interest rate and compare refinancing costs.
Electricity	Compare plans and check whether your current provider remains competitive.
Internet and mobile	Ask for a retention offer or switch to a cheaper plan.
Other insurance	Review overlapping benefits and unnecessary extras without sacrificing essential protection.

You don't need to make every change at once. Focus first on the expenses that offer the biggest potential savings.

If you're struggling to cover essential bills

Contact your bank before you miss a mortgage payment. Depending on your circumstances, it may be able to discuss a temporary hardship arrangement or other repayment options. Be aware that some arrangements can increase your total interest costs.

You can also contact MoneyTalks on 0800 345 123 for free financial mentoring in New Zealand.

If insurance costs are becoming unmanageable, you may also be eligible for assistance through Work and Income. Eligibility depends on your circumstances. You can start by visiting Work and Income.

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6. Your practical action plan for the next seven days

I'd suggest working through these steps in order.

Day 1: Check your mortgage

• Find out your current interest rate and when your fixed term expires.
• Ask your bank whether it can offer a better rate.
• If you're considering refinancing, ask about fees and any cashback you might have to repay.

Days 2–3: Review your insurance

• Get your renewal documents.
• Check your building sum insured, excess, natural hazard cover and temporary accommodation benefits.
• Request at least two alternative quotes with comparable cover.

Days 4–5: Compare the options

• Ask your current insurer to reconsider its price.
• Compare the savings from increasing your excess.
• Check whether annual payment or a different payment schedule would help.

Days 6–7: Make an informed decision

• Calculate your total annual savings.
• Choose the best balance between price and protection.
• Make sure your replacement policy is confirmed before cancelling your existing cover, so you don't accidentally leave your home uninsured.

Let's work out where you could save the most

I can help you narrow this down to the most worthwhile options for your household, rather than just giving you general advice.

First, approximately how much has your house insurance increased at renewal?

For example, has it gone from $2,000 to $3,000 a year, from $3,000 to $4,500, or by a different amount?

That will help me suggest how aggressively to negotiate, what premium savings might be worth pursuing, and where you should avoid cutting back.