What does landlord insurance cover in New Zealand?
General information, not advice on your situation. Buying through Tower's online quote is direct, without advice. QuoteHub is a Tower partner and Smiths Insurance & KiwiSaver may receive a commission from Tower.
Landlord insurance is cover written for a house that is rented out. It insures the building like a house policy, then adds benefits for what tenants bring: lost rent, deliberate damage and meth contamination. Tenancy Services tells landlords to make sure the property is insured and that the cover is for a rental, and every tenancy agreement must say whether it is insured and what the excess is. This guide reads Tower's Landlord's Plus wording as its worked example because it is published in full and QuoteHub is a Tower partner; other insurers' wordings differ.
What landlord insurance covers
Tower says house insurance is for your primary home and landlord insurance for the risks of having tenants (Tower); landlord insurance versus house insurance for a rental explains the gap. In Tower's wording, limits are in New Zealand dollars including GST, and an excess, the part of a claim you pay, applies to each event (Tower wording, pp. 24 and 28). The main parts are:
- the house: the buildings you own, including fitted carpet, fixtures and outbuildings, for sudden and accidental loss or damage up to your sum insured, the cap on a house claim (Tower wording, pp. 8 and 9)
- whiteware and window coverings: up to $20,000 per event at second-hand value, in addition to the sum insured, and the only contents the cover includes (Tower wording, p. 14; Tower)
- loss of rent: up to eight months' rent while a tenanted house is uninhabitable after a covered event, and up to eight weeks' rent in set situations such as a lawful eviction for unpaid rent (Tower wording, pp. 14 and 15)
- deliberate damage and meth: up to $20,000 per event for deliberate damage by tenants or their guests, and up to $30,000 to repair meth contamination, each with an additional excess (Tower wording, pp. 11, 15 and 16)
- liability: your legal liability as owner for accidents at the house, up to $20,000,000 in total, with $100,000 for bodily injury per event (Tower wording, p. 14)
The Natural Hazards Commission (NHC, formerly EQC) is the first layer for earthquake, landslide and similar events, with a building cover cap that is generally $300,000 plus GST for each event; cover above it comes from your private policy (NHC). Tower's wording says to claim from NHC first and pays the difference between NHC's cover and your sum insured, less any excess (Tower wording, p. 11).
When something goes wrong at a rental
Two rule sets apply when a tenancy goes wrong: the Residential Tenancies Act, which decides what a tenant owes, and the policy, which decides what the insurer pays. They do not always line up.
| What happens | What the tenancy rules say | What Tower's wording does |
|---|---|---|
| A tenant spills wine on fitted carpet or breaks a window by accident | Careless damage: the tenant owes the lower of four weeks' rent or your insurance excess, and insurers cannot chase tenants for it (Tenancy Services) | Covers sudden and accidental damage to the house, fitted carpet included, less your excess (Tower wording, pp. 8, 9 and 24) |
| A tenant or guest damages the house on purpose | The landlord can ask the tenant to repair it or pay the cost of repair or replacement (Tenancy Services) | Deliberate damage benefit: up to $20,000 per event, with an additional $500 excess (Tower wording, p. 11) |
| A tenant's pet scratches floors or chews fittings | From 1 December 2025 tenants are responsible for damage beyond fair wear and tear; the old limit was the lower of four weeks' rent or the excess (Tenancy Services) | Excluded: pet clawing, scratching, chewing and urine or excrement damage (Tower wording, p. 17) |
| Meth is found in the house | A room above 15µg/100cm² is contaminated and must be decontaminated, and any part above 30µg/100cm² makes the house uninhabitable (Tenancy Services) | Up to $30,000 to repair contamination damage if tenanted, after a Police complaint and with an additional $2,000 excess; no loss of rent for contamination damage (Tower wording, pp. 15 and 16) |
| A tenant stops paying rent | A 14-day notice to remedy is available if less than 21 days' rent is owed, and the Tribunal can end a periodic tenancy after three overdue rent notices in 90 days (Tenancy Services) | Up to eight weeks' rent after a lawful eviction for unpaid rent, less rent in advance and the bond, with an additional excess of one week's rent (Tower wording, p. 15) |
| A kitchen fire makes the house uninhabitable | The careless damage limit in the first row applies, or the deliberate damage rule in the second (Tenancy Services) | Repairs or rebuilds up to the sum insured, up to 20% more if repair is uneconomic and the rebuild costs more, and up to eight months' rent while uninhabitable (Tower wording, pp. 12 and 14) |
Tower defines contamination by the acceptable levels in NZS 8510 (Tower wording, p. 29), so ask any insurer how its definition compares with the tenancy regulations' level.
What the policy asks of you as a landlord
Landlord cover is conditional. Tower's wording lists landlord obligations and may decline a claim, and recover payments already made, if you or anyone managing the house for you does not meet them; Tenancy Services notes that some insurers want proof of thorough tenant checks (Tenancy Services). In Tower's wording the obligations fall into two stages (Tower wording, p. 8):
| Stage | What Tower asks for |
|---|---|
| Before the tenancy | Satisfactory references from previous landlords for every adult, a signed tenancy agreement, a pre-tenancy inspection recorded in writing with photos where possible, and rent in advance plus a bond totalling four weeks' rent |
| During the tenancy | An inspection inside and out at least every three months, written notice when rent is 14 days in arrears, a Tenancy Tribunal application when it is 28 days in arrears, and compliance with your legal obligations as a landlord at all times |
Those arrears steps are the policy's conditions, separate from the Act's own routes (Tenancy Services). For example, a tenant who falls two weeks behind should get written notice at that point, and an application should follow by week four, even if you were hoping to sort it out informally. If a property manager runs the house, the conditions still apply to you, so ask them for the inspection and notice records.
Situations that change your cover
Some changes to how the house is used change the policy, and Tower's wording asks you to say so straight away:
- Holiday home or short stays. Tower insures the house as a rental, as recorded on the certificate of insurance. Tell Tower if the house leaves the rental market or becomes a holiday home; Airbnb and short-term rental insurance in NZ covers how the layers fit (Tower wording, pp. 10 and 21).
- Business use. Tell Tower if anyone starts to use or live in the house for business, because the wording excludes activity for financial return when the house is used as business premises, though not occasional rental of the house or a home office (Tower wording, pp. 17 and 21).
- Empty between tenants. After 90 consecutive days unoccupied, cover narrows from day 91 to natural hazards, certain fires, storm and flood, with an additional $1,000 excess; the limit does not apply if the certificate shows a holiday home (Tower wording, p. 10). Call Tower before a long vacancy so it can say whether further cover is possible.
- Structural alterations. Tell Tower if you alter the structure, and note that the wording excludes renovation work that needs a building consent (Tower wording, pp. 13 and 21).
- Two policies on one house. Tower's wording does not cover a loss that is covered by another insurer's policy, and it will not contribute to a claim under another policy (Tower wording, p. 10), so an older policy covering the same house needs sorting out once the new one starts.
At claim time, tell the Police about suspected arson, theft or malicious damage and get Tower's permission before arranging repairs (Tower wording, p. 22).
Telling your tenants
The Residential Tenancies Act side is simple but easy to miss. Each tenancy agreement must record whether the property is insured and the excess, and it must say the policy is available to the tenant on request; changes should be passed on within a reasonable time (Tenancy Services). Tenants then know their careless-damage exposure. Because that exposure is capped at the lower of four weeks' rent or your excess (Tenancy Services), an excess above four weeks' rent leaves the gap with you.
What changes the price
Tower publishes limits but no landlord premiums, so this page shows no prices; only a quote does. Tower's explainer lists what goes into a house or landlord premium (Tower):
| Part of the premium | What it is |
|---|---|
| Base premium | General claims and running costs, including Tower's own reinsurance |
| Risk-based premium | Your address's exposure to earthquake, flood, landslide and sea surge (Tower) |
| Natural hazards levy | A government levy passed to NHC; the maximum for home insurance is $480 plus GST a year (NHC) |
| Fire and Emergency levy | A government levy passed to Fire and Emergency NZ |
| GST | 15% (Tower) |
Tower also lists more frequent bad weather, inflation and building costs, reinsurance costs and levy increases as reasons a premium can rise (Tower). The sum insured should cover the whole rebuild, including demolition, debris removal, professional fees and council fees (Tower), and how to work out your house sum insured shows the method. A higher excess may lower the premium and optional benefits add to it (Tower).
Landlord insurance guides and related cover
- Landlord or owner-occupier: landlord insurance versus house insurance for a rental, including what to change before the first tenant moves in.
- Lost rent and damage: loss of rent and tenant damage cover in NZ answers when rent is paid, who covers tenant damage and what the landlord duties are.
- Meth: meth contamination and landlord insurance in NZ answers who must test and clean and what a landlord policy pays.
- Short stays: Airbnb and short-term rental insurance in NZ answers whether a host needs separate insurance for the building and contents.
- Tenants and furniture: a landlord policy does not insure a tenant's belongings, and a tenant's contents policy will not cover furniture you supply (Tenancy Services); see renters insurance in NZ and contents insurance in NZ.
- Houses: house insurance in NZ and home and contents insurance, one policy or two.
- Buying or renovating: insurance on settlement day and insurance when building or renovating.
- Disasters and loans: natural hazards and flood cover in NZ; landlord cover insures the property and the rent, not the owner's life or income, which is what mortgage protection is for.
- Tower: what Tower's Landlord's Plus covers, how to get a Tower insurance quote online, how to make a Tower insurance claim and Tower house insurance in NZ.
Getting a quote from Tower online
Have the property's address, build year, construction, floor area and a rebuild-based sum insured to hand, plus the tenancy records the policy asks you to keep. QuoteHub's link opens Tower's online quote, where Tower asks its own questions and shows the price. Tower sets the price and issues the policy, and other insurers sell landlord cover too.
Questions people ask
How much does landlord insurance cost in NZ?
There is no standard price. Tower says changes to your excess, your location and claim costs can all move a premium, and its landlord page lists limits rather than prices (Tower). The only way to see how a landlord policy compares with a house policy for your address is to quote both.
When should I get landlord insurance?
Before the first tenancy starts, and from the day you own the property. ICNZ says a policy can only begin when you become the legal owner on settlement day, and that insurers will ask whether the house will be lived in, tenanted or rented to regular guests (ICNZ). Insurance on settlement day covers the timing.
Is landlord insurance compulsory in NZ?
Tenancy Services puts the responsibility for insuring the rental on the landlord and says tenancy agreements must state whether it is insured (Tenancy Services). A lender may set its own insurance condition, so check your loan terms.
Which landlord insurance should I choose?
No single policy suits every rental, so compare wordings rather than rankings: the landlord obligations, the excess, the limits for tenant damage, loss of rent and meth, how contamination is defined and how natural hazards are handled. Tower is QuoteHub's partner insurer (how QuoteHub is paid), and other insurers sell landlord cover too. For Tower's rating and claims handling, see Tower Insurance NZ: cover, rating and claims.
What does landlord insurance not cover?
In Tower's wording: wear and tear and gradual damage, damage by tenants' pets, and most loss once a house has been unoccupied for more than 90 consecutive days (Tower wording, pp. 10, 17 and 19). Loss of rent is not paid while a house is uninhabitable because of contamination damage (Tower wording, p. 15). Other insurers' exclusions differ, so read the wording.
What are the new rules for landlords in NZ?
Two recent changes reach insurance claims: tenants have been responsible for pet damage beyond fair wear and tear since 1 December 2025 (Tenancy Services), and the Residential Tenancies (Managing Methamphetamine Contamination) Regulations 2026 have applied since 16 April 2026 (Tenancy Services). Tenancy Services' landlord compliance checklist covers the rest.
Is landlord insurance tax deductible?
That is a tax question rather than an insurance one. Inland Revenue sets out what a landlord can deduct on its rental property expenses page, and an accountant can say how it applies to you. QuoteHub does not give tax advice.
Adviser's view
QuoteHub's read: Tower's landlord wording lets it decline a claim if the landlord skipped steps such as tenant references, a pre-tenancy inspection, three-monthly inspections or prompt action on arrears, so how the tenancy is run matters as much as the limits.
Get a Tower quote online
Tower’s own quote opens in a new tab. House, contents, landlord, car and boat cover can be quoted together in one go.
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*$400 is made up of individual policy discounts, each available separately. New, eligible policies only with promo code EASYSAVE. Excl. contract works. Ends 30 Jan 2027. Ts&Cs apply. Tower’s Easy Save terms, checked 6 October 2026.
QuoteHub is a Tower partner. If you buy through this link, Smiths Insurance & KiwiSaver may receive a commission from Tower. Buying online is not financial advice.
Cite this page QuoteHub NZ (2026). Landlord Insurance NZ: Cover, Conditions and Cost. www.quotehub.co.nz/landlord-insurance. Updated 2026-10-07.
References
- Tower, Landlord's Plus wording (H-LND-PLUS-09-24)
- Tower, Landlord insurance
- Tower, Understanding your house or landlord's premium
- Tower, House insurance
- Tower, Multi-policy discount page
- Tenancy Services, Insurance
- Tenancy Services, Damage and repairs
- Tenancy Services, Pet-related damage
- Tenancy Services, Guidelines on meth contamination
- Tenancy Services, Rent arrears and overdue rent
- Tenancy Services, New methamphetamine contamination rules now in effect
- Tenancy Services, Landlord compliance checklist
- NHC, About natural hazards cover
- ICNZ, Consumer Guide 2025: Buying a house
- Inland Revenue, Rental property expenses
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