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Before settlement on your first home in New Zealand, the key is to make sure your insurance will protect the house, your belongings and your ability to meet your mortgage obligations from the correct date — and that there are no gaps between what you think is covered and what the policy actually covers.

In New Zealand, this is particularly important because of earthquake risk, flooding, land damage, weather-related events and the distinction between your insurer's cover and the Natural Hazards Commission Toka Tū Ake (NHC) cover.

1. Essential coverage to verify before settlement

House insurance (building cover)

• Confirm the insurer has accepted the property and the policy is active from the date you become responsible for it under your sale and purchase agreement.
• Check the sum insured is enough to rebuild the home, including demolition, debris removal, professional fees and compliance with current building requirements where covered.
• Check whether garages, sheds, retaining walls, fences, driveways, decks and other structures are included or have separate limits.
• Confirm the policy meets your mortgage lender's insurance requirements.

Earthquake and natural hazard cover

• Check how earthquake, storm, flood, landslip, volcanic activity and other natural hazards are covered.
• Understand the NHC's statutory cover for eligible residential buildings and land, and how it works alongside your private insurer's policy.
• Ask specifically about land damage, retaining walls, accessways and areas around the house; cover for land is not the same as cover for the building.
• Confirm the excess for each event type, particularly earthquakes and natural hazards.

Contents insurance

• Check that furniture, appliances, clothing, electronics and other belongings are covered from the day you move in.
• Verify the total contents limit and any individual-item limits for jewellery, bicycles, artwork and valuables.
• Check accidental damage, theft, water damage and whether belongings are covered while moving.
• Confirm whether items stored in garages, sheds or outside are covered.

Temporary accommodation and additional costs

• Check whether the policy pays for temporary accommodation if an insured event makes the home uninhabitable.
• Verify the dollar limit, maximum duration and any conditions.
• Check whether demolition, debris removal, storage and other additional costs are included or capped separately.

Liability and mortgage protection

• Check personal liability cover for injury or accidental property damage involving you or your property.
• If you have a mortgage, consider whether life, income protection or mortgage repayment cover is appropriate for your circumstances. These are separate from house insurance.
• Confirm the lender's requirements and whether it needs evidence of insurance before releasing loan funds.

2. Check the exclusions and excesses carefully

These details can make a major difference when you need to claim.

Item to verify	What to look for
Excesses	Standard, earthquake, flood, water damage and other special excesses. Check whether multiple excesses can apply to one event.
Gradual damage	Limits or exclusions for leaks, rot, mould, corrosion and long-term moisture damage.
Existing damage	Undisclosed damage, prior claims, unrepaired defects or known issues with the property.
Unconsented work	Whether alterations, additions or renovations without the required consents affect cover.
Vacancy or renovations	Conditions if the house is empty, undergoing repairs or being renovated.
Property-specific risks	Flood-prone land, coastal erosion, unstable slopes, retaining walls and previous natural hazard damage.

The NHC's natural hazards cover is not comprehensive land insurance. For example, it generally excludes gardens, landscaping and driveway surfaces, and the amount payable for eligible land damage is limited. Check the official NHC guide to natural hazards cover. About natural hazards cover :: Natural Hazards Commission Toka Tū AkeGet to know your natural hazards cover :: Natural Hazards Commission Toka Tū Ake

3. Confirm the timing before settlement

This is one of the most important checks for a first-home buyer.

• Confirm the start date in writing. Ask your insurer when cover begins and ensure it aligns with your obligations under the sale and purchase agreement.
• Check your lawyer's advice. Ask when responsibility for the property and the risk of damage passes to you under your particular agreement.
• Get proof of cover. Have your policy schedule, certificate of insurance or written confirmation ready for your mortgage lender.
• Check payment arrangements. Confirm the premium, payment date and any conditions that must be met for cover to take effect.
• Don't rely solely on the seller's insurance. Ask your lawyer what happens if the property is damaged before settlement and whether the seller's policy or the sale agreement provides protection in that situation.

4. Verify the property's details are correct

Before accepting the policy, check that the insurer has the correct information about:

• The property address and the type of dwelling.
• Construction materials, roof type, approximate age and floor area.
• Any sleepout, granny flat, garage, swimming pool or other structures.
• Whether the property is owner-occupied, rented or partly used for business.
• Any previous claims, known damage, renovations or other information you were asked to disclose.

Incorrect information or missing disclosures can affect a claim. If you're buying an apartment, townhouse or unit title property, also confirm which parts are insured by the body corporate or owners' association and which are your responsibility.

5. Your final pre-settlement checklist

Settlement readiness

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Building policy confirmedCorrect property, rebuild sum insured and covered structures.

Cover dates confirmedStart date and responsibility for risk checked with your lawyer.

Mortgage lender requirements metInsurer, policy evidence and any lender conditions confirmed.

Natural hazards understoodEarthquake, flood, landslip, land damage and applicable excesses checked.

Exclusions and excesses reviewedKnown damage, gradual damage, unconsented work and special conditions checked.

Contents and other protection arrangedContents cover, temporary accommodation and optional personal protection considered.

Premium and policy documents readyPayment arrangements confirmed and documents saved.

Copy checklist

For independent information, you can also visit the Natural Hazards Commission Toka Tū Ake and Consumer NZ.

My main recommendation: Before you settle, get written confirmation of the building cover, its start date, the rebuild sum insured, the relevant excesses and any exclusions affecting the specific property. Those are the items most worth resolving before you commit to the purchase.