Rental Property Insurance – What Cover You Need

picture of house being held in a hand for connect realty blog about rental insurance


Property Insurance has been a hot topic in the news recently.  The conversation has mostly centred around flooding and meth related damage, but over the last few years we have also heard stories relating to earthquake damaged homes in New Zealand.  A report released by Treasury last year stated that 85% of New Zealand residential properties are under insured by up to 28%.

As property managers we can’t emphasis enough how important it is to have insurance for your rental property, and to make sure you have the right insurance.  In this blog we outline what we recommend to clients.

First you must take out a homeowners insurance policy, you then need to add ‘landlord extension’ cover.  While homeowner’s insurance covers owner-occupied homes, landlord’s insurance covers properties that are rented out.  This cover should insure your rental property against any damage, either accidental or otherwise. The Residential Tenancies Act 1986 requires you to pay the premiums charged for that insurance.

It pays to check exactly what your Landlord extension policy covers. Things to look for when shopping around for a landlords insurance policy include:

  • Property damage insurance
  • Liability protection
  • Loss of rental income
  • Guaranteed income insurance
  • Loss of rent caused by theft or malicious damage by tenants.

You may also choose to insure any chattels (such as furniture) that are listed in the tenancy agreement.  Note: any damage to them won’t be covered by the tenant’s contents insurance.  Also speak to your insurance company about their requirements for making claims on your rental property.

Clients of Connect Realty Ltd are able to access REAL Landlords Insurance.  REAL is one of New Zealand’s leading landlord insurance products currently on the market and the first specialist Landlord Insurance Policy provider. Their Landlord Preferred Policy was specifically designed to protect the interests of landlords and their investment properties.

REAL Insurance policies only cover landlords of residential rental properties that are managed by an approved Property Management Company, such as Connect Realty.  Their policy cover aims to complement your house insurance including:

  • Loss of rent (More than 97% of claims have been for loss of rent suffered by Landlords)
  • Intentional damage (your building insurance may not cover the entire loss caused by damage by the tenant)
  • Legal Liabilities, and more.

REAL offer a choice of three levels of cover (Traditional, Advantage, or Optimum), developed to protect your income and asset throughout the tenancy.  If you choose to use this cover your policy will be managed by us.

If you have any questions regarding landlord insurance please give Chris Jenkins a call on 0800 333 221