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If you're renting in New Zealand now and hope to buy your first home within the next 12 months, this is a good time to prepare. The key is to protect yourself while renting, understand what your future mortgage lender will expect, and budget for the insurance costs of owning a home.

You don't need to buy every type of insurance immediately. Some decisions are best made before you make an offer on a house, while others can wait until you know what you're buying.

1. The insurance decisions to prepare for

1. Contents insurance — consider now

While renting

Contents insurance can cover your belongings against specified events, such as theft, fire or certain types of water damage, depending on the policy.

• Estimate the cost of replacing your furniture, electronics, clothes and other possessions.
• Check whether your policy covers accidental damage, portable electronics and belongings away from home.
• Check excesses, exclusions and whether claims are settled on a replacement-value or depreciated-value basis.

Your landlord's insurance generally protects the building, not your personal belongings.

2. House insurance — prepare before buying

Before making an offer

Once you own a house, you'll need to decide how to insure the building itself.

• Check the insurer's willingness to cover the specific property before committing.
• Understand the insured amount, excesses, exclusions and whether the policy covers rebuilding costs.
• Ask about flood, landslip, earthquake and other natural-hazard cover.
• Budget for the premium as part of your ongoing homeownership costs.

If you have a mortgage, your lender will generally require suitable building insurance. Don't assume every property is readily insurable at standard rates.

3. Mortgage and life protection — assess your risks

Before taking on debt

Consider how you would manage mortgage payments if you died, became seriously ill, or could no longer work.

Possible options include:

• Life insurance: a lump sum for people who depend on you or to help repay debt.
• Income protection: ongoing payments if illness or injury prevents you from working, subject to policy terms.
• Trauma or critical illness cover: a lump sum after a qualifying diagnosis.
• Mortgage repayment cover: a policy designed to help with eligible loan repayments in specified circumstances.

These products have different definitions, waiting periods and exclusions. You may not need all of them, particularly if you have substantial savings, no dependants or good workplace benefits.

4. Your existing cover — review it now

Before changing anything

Review any health, life, income protection or other insurance you already have.

• Check whether premiums are affordable alongside a future mortgage.
• Understand any exclusions, benefit limits and conditions for keeping cover.
• Avoid cancelling an existing policy before replacement cover has been accepted and you understand when the new cover starts.

Buying a house is a good time to reassess cover, but not necessarily a reason to increase every policy.

2. What to check before buying a house in New Zealand

This is where insurance can have a major impact on your purchase decision. A house can fit your mortgage budget but still be expensive or difficult to insure.

Get an insurance indication for the actual property

Once you have a property in mind, contact insurers or a broker with its address and details. Ask about availability, the annual premium, excesses and any special conditions. Do this early enough for your lawyer to advise you before you become unconditionally committed.

Check natural-hazard exposure

Review flood risk, landslips, earthquake exposure, drainage and relevant council hazard information. Ask specifically about exclusions, special excesses and whether previous damage or claims affect the policy. New Zealand's public NHCover scheme provides a first layer of cover for eligible homes and some residential land, but it is not a substitute for comprehensive private insurance. Before you make an offer on a house :: Natural Hazards Commission Toka Tū AkeAbout natural hazards cover :: Natural Hazards Commission Toka Tū Ake

Understand what it would cost to rebuild

The property's purchase price is not the same as its rebuilding cost. Check the policy's sum insured, including whether demolition, professional fees, debris removal, retaining walls and other structures are covered. Underinsurance can leave you with a significant shortfall. How to get the best house and contents insuranceInsurance Basics: How Policies, Premiums & Excess Work

If buying an apartment or townhouse, check shared insurance

Find out what the body corporate insures, what your individual policy must cover, the excess allocation rules and whether the building has adequate cover. Review body corporate records, insurance valuations and any known building or earthquake-strengthening issues. Before you make an offer on a house :: Natural Hazards Commission Toka Tū AkeConsumer Guides

3. Build insurance into your home-buying budget

Don't budget only for your deposit, mortgage repayments and rates. Include insurance premiums and the cash you would need to pay an excess if you made a claim.

Cost to plan for	What to allow for
House insurance	Annual premium, including applicable levies
Contents insurance	Cover for your belongings, whether separate or bundled
Excess savings	Money available for an unexpected claim
Life or income protection	Premiums, if these forms of cover suit your circumstances
Body corporate fees	If applicable, including the cost implications of shared building insurance

Premiums can vary significantly depending on the property, location, construction, claims history, cover and excess. Get quotes for actual properties rather than relying on a national average. Consumer NZ's house and contents insurance guide is a useful starting point for comparing policies. How to get the best house and contents insuranceWhat’s going on with home insurance?

4. Your 12-month preparation plan

1. Now — while renting

   • Review your existing insurance and consider contents cover.
   • Make a list of your current policies, premiums, excesses and benefit limits.
   • Start a separate savings buffer for insurance excesses and unexpected home repairs.

2. 3–6 months before buying

   • Compare insurers and understand their cover options.
   • Review life and income protection needs against your expected mortgage.
   • Add estimated house insurance and other ownership expenses to your affordability calculations.

3. When you start looking seriously

   • Request insurance quotes for specific properties.
   • Check natural hazards, property condition and any insurance-related disclosures.
   • Ask your lawyer about insurance requirements and any conditions needed in your sale and purchase agreement.

4. Before settlement

   • Arrange the required building insurance with the correct start date.
   • Confirm your lender's requirements have been met.
   • Update your contents policy for your move, new address and any additional belongings.
   • Review personal insurance against your actual loan, dependants and financial commitments.

5. A few questions to prioritise your decisions

The most useful insurance plan depends on whether you're buying alone, how much debt you'll take on and what type of property you're likely to buy.

My general recommendation: start by reviewing contents insurance and your existing personal cover, then make insurability a standard check whenever you seriously consider a property. That way, you can make an informed purchase without paying for unnecessary cover a year in advance.