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If you want sensible home insurance in New Zealand rather than simply the cheapest premium, I’d focus on how much the insurer will actually pay after a major loss, what events are covered, and how much you could be left paying yourself.

The most important terms are usually the sum insured, the basis of cover, exclusions, excesses, natural-hazard cover and how the insurer handles rebuilding costs. A policy can look comprehensive on the summary page but have important limitations in its detailed wording.

The 8 policy terms I’d prioritise

1. Sum insured and rebuilding basis

Top priority

Check whether the policy pays the actual cost to repair or rebuild, up to a fixed sum insured, or offers broader total-replacement cover for certain events.

The sum insured needs to account for demolition, debris removal, professional fees, consent requirements and rebuilding to the appropriate standard. It is not the property's market value or RV. Check whether the limit is sufficient for a complete rebuild. House & Contents Insurance: Sum Insured ExplainedInsurance Basics: How Policies, Premiums & Excess Work

2. Natural hazards and water damage

Check the wording for earthquake, storm, flood, landslip and related damage. Understand the distinction between damage to the house and damage to the land, and what is handled by your insurer versus Natural Hazards Commission Toka Tū Ake (NHC).

Look closely at exclusions for surface water, groundwater, gradual seepage and existing damage. These can be just as important as the headline promise of comprehensive cover. About Natural Disasters - ICNZAbout natural hazards cover :: Natural Hazards Commission Toka Tū AkeWhat Home, Contents & Car Insurance Don't Cover (NZ)

3. Hidden gradual damage and leaking pipes

Ordinary wear and tear, rot and gradual deterioration are commonly excluded. Some policies offer limited cover for hidden damage caused by leaking internal pipes or plumbing.

Check whether hidden leaks are covered, the maximum payable, how long the leak may have been occurring, and whether locating the leak and repairing the pipe are included. What Home, Contents & Car Insurance Don't Cover (NZ)Supersurance

4. Temporary accommodation

If the house becomes uninhabitable, check the dollar limit, maximum time covered and whether the benefit sits inside or outside the sum insured.

A generous allowance matters if repairs are delayed by builders, materials, engineering assessments or council approvals. Also check whether additional living expenses are covered after a natural disaster. About natural hazards cover :: Natural Hazards Commission Toka Tū AkeICNZ Consumer Guide 2025

5. Retaining walls, fences, driveways and outbuildings

These items may have separate limits or be excluded from standard building cover. This is particularly important for sloping sections, older properties, substantial retaining walls, garages, sheds and swimming pools.

Ask for the specific limits for your property rather than assuming everything on the section is insured. NHC cover also has exclusions for several types of land improvement. About natural hazards cover :: Natural Hazards Commission Toka Tū AkeHome Sum Insured

6. Excesses and special excesses

Compare the standard excess with separate excesses for earthquakes, storms, water damage or other events. Check whether excesses apply per claim, per event or separately to different parts of a loss.

I’d favour an excess you can comfortably afford without sacrificing major-loss protection just to reduce the premium.

7. Reinstatement, matching and compliance costs

Check how the insurer handles demolition, architects and engineers, building-code upgrades, hazardous-material removal, and matching undamaged parts of the house to repaired areas.

Ask whether these costs are included in the sum insured or have their own sub-limits. Also check whether the insurer can choose to repair, rebuild or cash-settle the claim, and on what terms. House & Contents Insurance: Sum Insured ExplainedICNZ Consumer Guide

8. Policy exclusions and your obligations

Check requirements around maintenance, security, renovations, unoccupied periods, rental use and disclosing relevant facts. A home left vacant for an extended period may have restricted cover.

Make sure the insurer knows about any unusual construction, previous damage, major renovations or other features that could affect acceptance or claims. What Home, Contents & Car Insurance Don't Cover (NZ)ICNZ Consumer Guide 2025

What I’d look for in a good policy

For a sensible level of cover, I’d use these as the preferred starting point when comparing policies:

Term	What I’d prefer
Rebuilding	A realistic, independently checked sum insured, or broader replacement cover where available
Major events	Clear cover for fire, earthquake, storm, flood and landslip, subject to disclosed limitations
Temporary accommodation	A substantial limit with a generous time allowance
Hidden leaks	Explicit cover for eligible hidden gradual damage, with understandable limits
Other structures	Adequate limits for retaining walls, garages, sheds and other features on your property
Excess	Affordable and without unexpectedly high event-specific excesses
Claims	Clear repair, rebuild and cash-settlement terms
Exclusions	No critical exclusions that conflict with the condition or use of your house

These are preferences, not guarantees that every insurer offers each feature. The exact policy wording and schedule are what count.

Three things I would not compromise on

1. An adequate rebuild limit. Being underinsured can leave you with a substantial shortfall after a total loss.
2. Understanding the natural-hazard and water-damage exclusions. Comprehensive-sounding cover is not the same as covering every cause of damage.
3. Enough temporary accommodation cover and affordable excesses. You need the policy to be usable in a serious claim, not merely impressive on paper.

The Insurance Council of New Zealand has useful guides on house insurance and sum insured and common policy exclusions.

One question that would help me narrow this down

Are you looking at insurance for a standalone house you own and live in, or a townhouse, unit or apartment? The most important terms can differ quite a bit, especially for shared structures, body corporate cover and retaining walls.