How much does house insurance premium cost in NZ

House insurance premiums is up 31% in New Zealand over the past three years (Q4 2022 to Q4 2024).

The average cost of house insurance in NZ is now $2,704 a year (based on Q4 2024 Quashed data). This is up more than 30% compared to 2022 (Q4) when the average house insurance policy cost $2,062.

Depending on where you live in NZ, your house insurance premiums can be very different. Here’s a look at the key regions across NZ and how much average house insurance costs in Q4, 2024 data from Quashed.

Factors that impact the cost of house insurance

The cost of house insurance is impacted by a number of factors including:

• Age of the property

• Size of the property

• Location of the property (natural hazards risk)

• Construction materials (including quality of the build)

• Condition of the property

• Security features

Other selection factors that will change your premiums:

• Coverage type (low or high tier of cover)

• Sum insured amount

• Excess

• Add-ons selected

• Payment frequency

Now that you’re aware that the cost of house insurance has risen significantly and there are a number of factors that impact on your premiums, let’s take a look at how you should compare your house insurance to help you save money and find the best policy for you.

How to compare house insurance in NZ

There are three areas you’d want to compare when it comes to your house insurance. 

1. Price (how much will it cost you)

2. Policy benefits (what can you claim on)

3. Insurance provider (who is providing your policy) 

1. Price is the obvious one. We can only buy what we can afford. You may be surprised to learn that house insurance premiums can vary a lot across insurance providers.

For example, a house in Auckland that is insured for $800,000 with a $500 excess can cost between $1,644 to $3,051. This range is across four insurance providers. All other variables entered are the same when obtaining these quotes. 

Tip: House insurance premiums can be significantly different across insurers. More expensive doesn’t mean you’re getting better cover. Cheaper house insurance does not mean it is not as good.

2. Policy benefits are next on the list to look out for. Now that you’ve got an idea of a range of prices (commonly known as insurance premiums) across a number of insurance companies, you’d want to compare and understand how the policies are different. What can you claim on each policy and how the benefits and limits are different. 

A good starting point is what is the sum insured limit on your policy. One insurer may be willing to cover your property for $800,000. Another may only be willing to cover it for up to $700,000. At this point, it’ll be worth checking to see what the rebuild costs of your property would be in the event it was completely destroyed. There are a few ways to do this but the most convenient and online way is to use Cordell's calculator which most insurers also point their customers to.

Now looking at the benefits of the policy i.e. what can you claim on. There are a number of benefits that are provided within a house insurance policy. Temporary accommodation, liability for property damage and injury, hidden water damages (e.g. leaky pipes causing damage to your floor and walls), retaining walls, landscaping cover, etc. Not all insurers will offer the same benefits nor the same limits. 

Take "Hidden water damages" as an example. One insurer may offer $5,000 of cover and another may only offer $2,000. Another example, would be an insurer will cover your retaining walls for up to $75,000 and another has only $25,000 in cover limits. This is a $50,000 difference at claim time for what could be coming out of the owner's pocket - if this is a relevant benefit for them.

When it comes time to claim, the difference in policy benefits could mean hundreds, or sometimes, thousands of dollars in difference. 

Tip: The most commonly known insurance brands may not always have the most comprehensive policy benefits and limits. 

3. Last, but certainly not least, the insurance provider behind your policy. 

Most Kiwis will be familiar with three, maybe four, house insurance brands in NZ. AA, AMI, State and Tower are the most commonly known brands. However, you may be surprised to know that there are more than 10 house insurance providers/brands in the NZ market. AMP and Initio just to name a couple of alternative options. There are of course also the banks that offer house insurance. ANZ, ASB, BNZ and Westpac to name the big fours. 

But, does bigger brands always mean better insurance and lower prices? 

Some of the lesser known brands offer sharp pricing, strong policy benefits and great service. And if you’re wondering, are they any riskier to insure with compared to the better known brand insurers? One way to look at it would be the financial ratings of the lesser known brand insurers. In New Zealand, all insurers are equally held to a similar standard by the Reserve Bank of New Zealand (RBNZ) and are subjected to the same regulations enforced by the Financial Markets Authority when operating in the country. 

How much can you save comparing your insurance 

With house insurance climbing 31% in three years (Q4 2022 to Q4 2024), the short answer is you could potentially be saving a lot of money.

On average, based on data from Quashed.co.nz, a NZ consumer shopping for their house insurance can expect to find that prices will vary between 20% to 100% across insurers. From Quashed’s 2024 data, we find that Kiwis could save $580 on average when it comes to house insurance.

Based on this, a household over 10 years, assuming this holds constant, would be saving in excess of $5,000.

Does that mean you’ll save the $580 on your house insurance today? It depends. You could save more, less or none at all. The best way to find out is to compare and shop for your house insurance across insurance providers.

To compare your house insurance in minutes, try Quashed.co.nz

How does Quashed.co.nz compare house insurance

Quashed.co.nz is the first insurance comparison platform of its kind in New Zealand.

It's quick and easy way to compare your house insurance. Whether you’re shopping for a new house policy, or you’re looking to compare your upcoming house insurance renewal, Quashed makes it easy.

It takes less than five minutes to shop and compare house insurance online with Quashed. You’ll be shown real-time pricing across a number of different insurance providers, and you get to see how the policy benefits compare across each insurer shown.

You can choose to upload and compare your existing house insurance policy against other options, or you can enter your information once and be served up a number of options without having to repeatedly enter the same information on the different insurers websites.

Let’s face it, no one likes shopping for insurance. But Quashed.co.nz makes it quick and easy, some might even say almost fun. Especially when you’re saving hundreds, sometimes thousands, of dollars.

Further reading

Here are some great reads we've selected for you:

• House Insurance: A Homeowners Guide: What you need to know about house insurance in New Zealand

• Key Things To Know About House Insurance: Key considerations for house insurance in New Zealand

• Why Are House Insurance Premiums Increasing: What’s behind rising costs and how to keep cost down

• 8 Budget Hacks for House Insurance: Eight easy ways to save on house insurance in New Zealand

• Average Cost of Car, House & Contents Insurance in NZ: Latest data on car, house & contents insurance in NZ

House insurance FAQs

Why should I compare house insurance regularly

Comparing your house insurance regularly can help you to save money on your cover when you find a cheaper policy. House insurance comparisons also helps you to understand what you can claim on within your house insurance policy. Insurers often update their pricing, which means their premiums could be cheaper or more expensive.

How can I reduce my houe insurance premium cost

There are several ways to reduce your premiums:

• Increase your excess – A higher excess means lower premiums, but also higher out-of-pocket costs when making a claim.

• Review your sum insured – Ensure your coverage reflects the true rebuild cost without over-insuring or under-insuring.

• Pay your premiums annually instead of monthly – Most insurers charge extra for monthly payments.

• Compare quotes with Quashed.co.nz – Shopping your insurance ensures you’re not overpaying. Prices can vary significantly between providers.

House insurance basics

What does house insurance cover in NZ?

House insurance can cover damage to your property and damages to others' property or people (i.e. liability cover). Events such as accidents, natural disasters and unexpected events such as vandalism, theft, and more are usually covered if your house is insured. Coverage varies by policy, but most standard house insurance policy will cover:

• Natural disaster protection such as flood damages

• Accidental damage (car driving into your house, a ball breaking your windows, battery fire, etc.)

• Vandalism of your property

• Temporary accommodation and storage costs

• Other benefits such as hidden water damages, landscaping cover, lost or stolen keys, etc.

Getting house insurance cover right

How do I know if I’m insuring my house for the right amount?

Your sum insured should reflect the cost of rebuilding your house if it was completely destroyed. If it’s set too low, you may have to cover the shortfall in a claim. Over-insuring can cost you more. You can check out Cordell's calculator to understand how much it will roughly costs to rebuild your property based on its specifications.

What should I check when comparing house insurance policies?

Key factors to compare:

• The insurer - Who is the insurer (e.g. their financial rating, where they are based, etc.)

• Sum insured – Does the policy fully cover rebuild costs or only the amount you've elected

• Policy benefits and limits - What does your insurance cover and how much can you claim

• Excess options – A higher excess lowers premiums but increases claim costs.

• Policy exclusions – Check what’s not covered, such as gradual wear and tear.

• Claims process – Consider customer reviews and insurer reputation.

• Additional cover options – Some policies include extras like excess-free cover options

Making a house insurance claim

What’s the first thing I should do when making a claim?

If an accident occurred, you should check that all parties involve are not hurt. Call for an ambulance immediately if injuries are serious. The police should also be notified.

After which, you should take immediate action to document the damage and notify your insurer.

General house insurance claims process:

• Photograph and video the damage for evidence.

• Take down any involved parties' details

• Contact your insurer as soon as possible to start the claim.

• Prevent further damage if safe to do so, such as covering broken windows.

• Keep receipts for emergency repairs or replacements.

• Follow your insurer’s process to avoid claim delays.

What happens if I am underinsured for my house insurance

Underinsurance occurs when your sum insured isn’t enough to cover the full cost of repair or rebuilding cost of your house. If this happens, you will likely have to contribute to the shortfall. This is unless your policy has either an inflation benefit or a benefit that will cover above your sum insured amount (i.e. replacement cover).

This article provides general information only and does not constitute insurance or financial advice. Insurance policies vary between providers, and you should check with your insurer or a licensed adviser for guidance specific to your situation. For full details, refer to Quashed’s terms and conditions.