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For a normal owner-occupied home in New Zealand, I would not choose an insurer purely on the cheapest premium. The trade-offs are usually between price, cover quality, claims experience, and how well the policy fits your particular house risk. There is no single “best” NZ house insurer because the right choice depends heavily on the property and the policy wording. MoneyBalance

Here are the trade-offs I would weigh:

1. Cheapest premium vs stronger cover

Prefer the cheaper insurer when:

• The policies are genuinely comparable.
• The excess is acceptable.
• You have a relatively straightforward, low-risk home.
• The saving is meaningful (for example, hundreds of dollars per year).

Pay more when:

• The cheaper policy has lower limits for things you care about.
• It excludes or restricts common problems (water damage, retaining walls, temporary accommodation, gradual damage, etc.).
• You would struggle financially after a major loss.

A $200–$300 annual saving can look attractive, but a policy gap discovered after a major claim can dwarf years of savings.

2. Broad cover vs cheaper “basic” cover

Some insurers offer multiple cover tiers. A higher tier may add benefits such as higher temporary accommodation limits, hidden water damage cover, or extra rebuild-related benefits. For example, Tower Insurance offers different house cover levels with different included benefits and limits. Tower Insurance NZ

A typical trade-off:

• Premium cover: better if you own a newer, higher-value, or harder-to-replace home.
• Basic cover: may be enough for a modest, easily rebuilt home where you are comfortable accepting more risk.

3. Claims reputation vs price

Insurance is something you buy hoping you never need — but the claims process is the product when things go wrong.

I would give extra weight to:

• How easy it is to lodge and track a claim.
• Whether repairs are managed well.
• Communication during major events.
• Whether the insurer has a good repair network.

For example, AMI highlights its repair management service and digital claims tools as part of its offering. AMI Site

4. Large established insurer vs smaller/direct insurer

Large established insurer

Pros

• More claims infrastructure.
• More experience handling major events.
• Often easier to deal with during widespread disasters.

Cons

• May not always be cheapest.
• Policies can feel less flexible.

Smaller or online-focused insurer

Pros

• Often simpler buying process.
• Sometimes sharper pricing.

Cons

• You may need to check carefully how claims, repairs, and complex situations are handled.

5. Convenience vs independence

Some people value having:

• a mobile app,
• online claims,
• self-service policy changes.

Others value:

• speaking with a person,
• using a broker,
• having someone advocate for them.

For a straightforward owner-occupied house, direct insurers can work well. For unusual homes (heritage properties, high-value homes, complex renovations), a broker or specialist insurer may be more valuable.

6. Natural hazard exposure

In NZ, the property itself matters enormously:

• earthquake risk,
• flooding,
• coastal exposure,
• landslip risk,
• rebuild complexity.

Two neighbours can receive very different premiums because insurers price location-specific risks. Tower Insurance NZ

For a hazard-prone property, I would usually prioritise:

1. clear policy wording,
2. adequate limits,
3. claims capability,
4. then price.

7. Loyalty vs regularly shopping around

NZ insurers have changed pricing practices in recent years, and some traditional discounts have reduced or disappeared. Consumer NZ A good habit is to review your cover annually rather than assuming loyalty is rewarded.

A practical decision rule

For a typical owner-occupied NZ home:

• Choose the cheapest acceptable policy if the cover is close and your home is straightforward.
• Choose better cover if your home is expensive to rebuild, has unique features, or you have little financial buffer.
• Choose the insurer you trust to handle a disaster if the premium difference is small.
• Avoid comparing only headline premiums — compare excesses, limits, exclusions, and rebuild wording.

The biggest things I would compare on quotes are:

1. Sum insured and rebuild assumptions.
2. Natural hazard cover and excesses.
3. Water damage/gradual damage limits.
4. Temporary accommodation allowance.
5. Repair guarantees and claims process.
6. Premium after the first year (not just introductory pricing). Consumer NZ

For a normal NZ owner-occupied home, the “best” insurer is often the one with the best balance of acceptable price and fewer unpleasant surprises at claim time, rather than the absolute lowest quote.