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When choosing house insurance in New Zealand, the main question is not just “what is the cheapest premium?” but “what could financially threaten me if something goes wrong?” A good review usually covers the property’s risks, the policy’s limits, and your ability to recover after a loss.

1. Natural hazard risks

New Zealand has a wide range of natural hazards, and the risk varies significantly by property. Consider:

• Earthquake risk — especially relevant because building damage can be severe and repairs can be complex.
• Flooding and stormwater risk — check whether the property has flooded before, whether it is near waterways, and whether drainage is adequate.
• Landslip or slope instability — important for properties on hills, near cut slopes, or with retaining walls.
• Volcanic, tsunami, and coastal risks — relevant depending on the area and property characteristics.
• Coastal erosion and sea-level-related risks — some coastal properties may face changing insurance availability or exclusions over time. Settled.govt.nz

Your private home insurance often links to government natural hazards cover through the Natural Hazards Commission Toka Tū Ake (formerly EQC). This cover is not a substitute for understanding your private policy: it provides a first layer of cover for certain natural hazards and has limits, particularly around land. Natural Hazards

2. Whether the rebuild amount is enough

A common mistake is insuring for the purchase price rather than the cost to rebuild.

Think about:

• Would the sum insured cover demolition, debris removal, architects, engineers, consent costs, and current building prices?
• Is the house unusual (heritage features, high-end finishes, difficult access, custom materials)?
• Are there separate structures that need cover:
  • garage
  • shed
  • sleepout
  • retaining walls
  • fences
  • driveways
  • landscaping

Ask the insurer how the sum insured should be calculated and how often it should be reviewed.

3. Policy type and settlement basis

Check whether your policy pays:

• Full replacement/rebuild cost (subject to policy terms), or
• Indemnity value (the value of the home considering age and condition)

These can produce very different outcomes after a major loss. Consumer NZ

4. What is actually excluded

Read exclusions carefully. Common areas to investigate:

• Gradual damage (for example, slow leaks or deterioration)
• Poor maintenance
• Existing damage
• Defective workmanship or materials
• Weathertightness issues
• Certain types of water damage
• Unoccupied periods
• Business use from home

A home that looks fine during purchase can still have insurance complications if there are hidden defects or a history of problems.

5. Previous damage and claims history

Before settling, investigate:

• Has the house ever had:
  • earthquake repairs?
  • flood repairs?
  • landslip repairs?
  • weathertightness claims?
• Were repairs completed properly?
• Are there outstanding claims or disputes?

A pre-purchase building inspection and specialist reports (where relevant) can help identify issues that affect insurability. Natural Hazards

6. Excesses and affordability after a disaster

A lower premium often comes with a higher excess.

Think about whether you could comfortably pay:

• standard excesses
• natural hazard excesses
• multiple excesses if several types of damage occur

Also consider the cost of temporary accommodation if your home becomes uninhabitable. Some policies include this; others have limits.

7. Land and retaining structures

Many homeowners assume “the land is insured” in the same way as the house. It usually is not.

Check:

• retaining wall cover
• driveway and accessway cover
• drainage and underground services
• garden and landscaping limits
• what happens if land movement affects the house

Natural hazards cover has specific boundaries and may only cover certain areas of residential land, rather than the entire section. Natural Hazards

8. Contents and valuables

If you are buying a home, remember to separately assess:

• furniture
• appliances
• electronics
• jewellery
• artwork
• tools
• collections
• outdoor equipment

Some categories have sub-limits, so expensive individual items may need to be listed.

9. Liability risks

Check the personal liability section:

• What happens if someone is injured on your property?
• Are rental activities, boarders, Airbnb-style use, or home businesses covered?
• Are swimming pools, trampolines, or other features disclosed?

10. Future insurability

Insurance markets change. Before buying, consider:

• Will insurers continue offering cover for this type of property?
• Could premiums rise significantly?
• Could exclusions be added later?
• Are there known hazard maps or council notices affecting the property?

A practical checklist before choosing a policy

Ask each insurer:

1. What is my sum insured based on, and how was it calculated?
2. Is my home covered for full rebuild or only current value?
3. What natural hazards are covered and what are the limits?
4. What land features are covered?
5. What are the major exclusions?
6. How much temporary accommodation cover is included?
7. What excesses apply?
8. Are there any issues with this property type that could affect claims?

For a newly purchased home, it is worth comparing policies on coverage details rather than only premiums. The cheapest policy can become expensive if it leaves a large gap after a major event.