Getting House Insurance Sorted Before You Move In

Whether you’re looking to buy your first home or your third, house insurance plays an essential role.

Why You Shouldn’t Leave It Until the Last Minute

Buying your first home is a major milestone, and there’s a lot to think about—deposits, inspections, KiwiSaver withdrawals, loan approval. But one important step that’s easy to overlook is house insurance.

Most banks won’t approve your mortgage unless you can show proof of insurance—and not just any policy. They’ll want to see that the house is insured from the day of settlement. That means you need to get this sorted well before the final paperwork is due.

Here’s how to make sure your new home is properly protected—and that you don’t hit any last-minute roadblocks.

1. Get a Clear Picture of What You’ll Pay

Before you sign the sale and purchase agreement, it’s smart to get a rough idea of how much your house insurance will cost.

Insurance premiums can vary depending on factors like:

• The age and size of the home

• The building materials used (e.g. timber vs brick)

• Whether it has a swimming pool, spa, or other high-risk features

• The location (e.g. is it in a flood zone or earthquake-prone area?)

Knowing these things upfront can help you understand what the extra cost on top of your mortgage will be. It might also help you decide between two properties if you're weighing up options.

If you're not sure where to start, an insurance adviser can do the number-crunching for you. They’ll compare quotes from different providers and explain what’s included in the cover.

2. Find Out the Property’s History

It’s easy to focus on what a house looks like today—but what’s in its past can affect your insurance premiums (or even your ability to get cover at all).

Before you commit, try to find out:

• What kind of insurance the current owners have

• Whether there have been recent claims (like fire or flood damage)

• If there are any special exclusions or conditions attached to the property (e.g. high-risk zones, previous EQC claims)

Ask your real estate agent if the vendor can share their current insurance documents. You won’t be able to transfer their policy, but it gives you a head start on what to expect.

3. Choose the Right Type of Cover

In New Zealand, most house insurance is based on something called sum insured. This is the maximum amount your insurer will pay out if your home is destroyed or badly damaged.

Unlike older policies that used to offer full replacement, sum insured requires you to estimate how much it would cost to rebuild your house—including demolition, site clearance, and compliance costs.

If you guess too high, you’ll pay more than you need to. But if you guess too low, you may not have enough cover to rebuild after a total loss—leaving you out of pocket when you need help most.

To get your sum insured right:

• Use your insurer’s online calculator, or

• Ask a professional quantity surveyor or valuer for an assessment

• Consider extra features like decks, driveways, retaining walls, pools, and fencing

Your mortgage lender will require a valid policy with a sum insured figure clearly stated—so this isn’t something you can guess or delay.

4. Don’t Let Your Policy Go Out of Date

Getting insurance sorted at settlement is just the start. Over time, your policy needs to keep pace with your home and how you use it.

Any time you make changes—like a kitchen upgrade, new deck, or putting in a pool—you should check if your sum insured still covers the full rebuild cost. Some changes might also increase your premium or require special cover.

Recreational features like swimming pools and spas often need to be declared separately. In some cases, they might not be covered at all unless you add them to your policy.

Set a reminder to review your house insurance once a year, ideally when your policy renews. This keeps everything up to date and ensures you’re not caught short if something goes wrong.

Protect Your Home—and Your Lending

Home insurance isn’t just about protecting your bricks and mortar. It’s also about protecting your financial future. If the worst happens, your insurance helps you rebuild—without having to start from scratch or take on huge debt.

And for first-home buyers, it’s a non-negotiable part of getting your mortgage approved. Waiting until the last minute can create unnecessary stress—and could even delay your settlement.

Talk to an adviser early, get a policy that suits your home and budget, and make sure your lender gets the confirmation they need. That way, when it’s time to move in, you can focus on enjoying your new home—knowing it’s properly protected.