Is house insurance enough for a rental property 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.
No, usually not. An ordinary house policy is written for a home you live in, and Tower's house and contents page answers "Does this house insurance policy cover rentals?" with a no (Tower). Its house wordings list a tenanted property as an exclusion, so a house let to tenants needs a landlord policy instead. This guide, part of QuoteHub's landlord insurance section, shows which situations count as a rental, what landlord cover adds and what to change before the first tenant moves in.
Why house cover may not respond once tenants move in
Tower says its Standard, Plus and Premium house policies are designed for owner-occupiers, and that renting out a property means you will need its Landlord insurance policy (Tower). The wordings list a dedicated tenanted property among the things the policy does not cover: "your house if it becomes a dedicated tenanted property that you do not use personally" (Standard, Plus and Premium wordings, document code 09-24). The guide to Tower house insurance covers the three levels, and how Tower claims work explains the process if you do claim.
The wording also asks you to tell Tower immediately if the house becomes tenanted. If you do not, Tower can decline a claim and recover anything it has already paid, and can cancel or avoid the policy (Standard wording). Tenancy Services gives landlords the same message in general terms: make sure the cover is for a rental (Tenancy Services).
Which situation needs which policy
Tower's wordings treat different kinds of "rental" differently, and another insurer may draw the lines elsewhere.
| Your situation | What Tower's house wording says | Policy to ask about |
|---|---|---|
| You live in the house | Covered as an owner-occupied home | House cover |
| You let a room or the whole house now and then | Allowed if you inspect after each rental and claim first with any booking service (wording) | House cover, with the occasional letting disclosed |
| Tenants on a tenancy agreement and you do not use the house | Excluded as a dedicated tenanted property (wording) | Landlord cover |
| Empty between tenancies or during renovations | Cover is limited from day 91 of being unoccupied, with an extra $1,000 excess (wording) | Tell the insurer if it will pass 90 days |
| A holiday home | The unoccupied limit does not apply if the certificate shows a holiday home (wording) | House cover recorded as a holiday home |
For example, a couple who move overseas for two years and let their house to a family have created a dedicated tenanted property, so the policy needs to change before the family arrives. The moving overseas insurance guide has the wider checklist.
What landlord cover adds, and what it asks of you
Tower's Landlord's Plus wording insures the house as a rental property, as recorded on the certificate, and adds benefits for tenant-related loss (Landlord's Plus wording). Loss of rent, which pays rent you lose while a covered loss keeps the house uninhabitable, is the main one. The table compares it with the house wordings.
| What differs | Owner-occupier house wording | Landlord's Plus wording |
|---|---|---|
| Rent lost | No loss-of-rent benefit (wording) | Up to eight months' rent while a covered loss keeps a tenanted house uninhabitable; up to eight weeks' rent after an eviction for non-payment or a tenant leaving without notice, after deductions (wording) |
| Deliberate damage by tenants | Excluded, apart from deliberate fire by tenants or their guests (wording) | Up to $20,000 for each event, with an extra $500 excess (wording) |
| Methamphetamine contamination | Excluded as controlled drug contamination (wording) | Up to $30,000, with an extra $2,000 excess and conditions (wording) |
| Curtains and blinds you supply | Drapes and blinds are listed as not covered (wording) | Up to $20,000 for each event at second-hand value, for window coverings and whiteware (wording) |
| Temporary accommodation for the owner | Included, with a limit that rises by cover level (wording) | Not included |
The landlord wording has the same 90-day unoccupied limit as the house wordings (Landlord's Plus wording), so a long gap between tenants matters under either policy.
Landlord cover also asks more of you. Tower may decline a claim and recover payments already made if you miss these obligations:
- Before a tenancy: references for every adult, a signed tenancy agreement, a pre-tenancy inspection with photos, and rent in advance and a bond together totalling four weeks' rent (wording).
- During a tenancy: inspections inside and out at least every three months, written notice when rent is 14 days behind, and a Tenancy Tribunal application at 28 days (wording).
Where tenancy law meets your policy
Under the Residential Tenancies Act, tenants and their guests are liable for careless damage up to four weeks' rent or the landlord's insurance excess, whichever is lower, and insurers cannot chase tenants for it. For intentional damage, the landlord can ask the tenant to repair it or pay the cost (Tenancy Services). So your excess matters twice: it is what you pay on a claim, and it can cap what a tenant owes for careless damage.
Pets are a gap in both policies. Tower's wordings exclude damage from pets clawing, scratching or chewing the house and from their urine or excrement (Landlord's Plus wording). For damage on or after 1 December 2025, tenants on the agreement are responsible for pet damage beyond fair wear and tear (Tenancy Services).
On methamphetamine, the Residential Tenancies (Managing Methamphetamine Contamination) Regulations 2026, in force since 16 April 2026 (New Zealand Legislation), treat a property as contaminated when any part tests above 15 µg per 100 cm² and as uninhabitable above 30 µg per 100 cm², using NZS 8510:2017 as modified (Tenancy Services). Landlord's Plus pays only if the house is tenanted when the contamination occurs, you have made a formal Police complaint and you have met the landlord obligations, and not for contamination that first occurred under a Tower policy with no methamphetamine benefit (Landlord's Plus wording).
What stays the same, and what neither policy covers
A rental has the same natural hazards layer as an owner-occupied house. The Natural Hazards Commission (NHC, formerly EQC) says you have natural hazards cover if your home insurance includes fire insurance, that its building cap is generally $300,000 plus GST for each event, and that anything above comes from your private policy. Its levy is capped at $480 plus GST a year (NHC). Tower pays above that limit only where "that damage is covered under this policy" (Standard and Landlord's Plus wordings), so the policy type still matters in a large loss. Natural disaster insurance in NZ explains the layers.
The sum insured is the most the insurer will pay to rebuild, so it should reflect rebuild cost rather than market value: Tower says land isn't insured and the two are likely to be quite different (Tower). The sum insured guide shows how to work it out.
If you are the tenant, Tenancy Services says the landlord should insure the building and that this does not cover your belongings, so tenants should have their own contents and liability cover (Tenancy Services). The renters insurance guide explains it, and the home and contents guide covers the owner-occupier side.
Switching from house cover to landlord cover
These steps follow Tower's wordings; another insurer's wording may differ.
- Tell the insurer before the first tenancy starts and check the certificate shows a rental, as Tower's wording asks for notice immediately when the house becomes tenanted.
- Do not cancel first. Tower's stand-down exclusions for storm, flood and similar events do not apply when a policy starts immediately after another that covered those risks (Landlord's Plus wording). Ask how that applies to your change.
- Check the sum insured is a rebuild figure and the paperwork above is ready.
- Consider insuring other furniture you leave for tenants separately, because Tenancy Services says the tenant's contents policy will not cover damage to it (Tenancy Services).
- Think about a methamphetamine test before the tenancy. Tenancy Services says landlords need not test between tenancies but may choose to (Tenancy Services), and a result documents the starting position.
Getting a quote from Tower online
Have the address, build year, construction, floor area and your rebuild sum insured ready, and be ready to say the house is let to tenants. QuoteHub's link opens Tower's online quote, which prices cover on the details you enter. Other insurers sell landlord cover too, so the same questions apply to any wording you compare.
Questions people ask
Does house insurance cover a rental property?
Not in Tower's wordings: its owner-occupier house policies list a dedicated tenanted property as an exclusion, and renting out a house means taking a landlord policy (Tower, Standard wording). Tenancy Services tells landlords to make sure the cover is for a rental (Tenancy Services).
Is landlord insurance more expensive than house insurance?
Tower's pages give no landlord premium or percentage difference. Its page on what makes up a house or landlord premium lists the same parts for both: a base premium, a risk-based premium, the NHI levy, the FENZ levy and GST (Tower). The house insurance cost guide covers the main drivers.
Is landlord insurance compulsory in NZ?
Tower says home insurance isn't a legal requirement in New Zealand, although a bank or mortgage lender may require it (Tower). Each new tenancy agreement must state whether or not the property is insured and the excess on any policy (Tenancy Services).
Can I use house insurance if I rent out a room or use Airbnb?
Tower's house wordings allow for a house or part of a house that is occasionally let, provided you inspect after each rental and claim first with any booking service used, but they exclude a dedicated tenanted property (Standard wording). Tower's blog says a property used as an Airbnb may not be covered under a landlord policy either (Tower).
What are the new rules for landlords in NZ?
Pet damage rules changed on 1 December 2025 (Tenancy Services) and the meth contamination regulations on 16 April 2026 (New Zealand Legislation), both covered above.
Adviser's view
QuoteHub's read: in Tower's wordings the dividing line is whether you still use the house yourself, so what matters most is that the insurer's records show a rental before the first tenancy starts.
Get a Tower quote online
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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 vs House Insurance for a Rental. www.quotehub.co.nz/landlord-insurance/landlord-vs-house-insurance. Updated 2026-10-07.
References
- Tower: house and contents FAQs
- Tower: house insurance
- Tower: landlord insurance demystified
- Tower: house and landlord premium
- Tower: Landlord's Plus wording
- Tower: house Standard wording
- Tower: house Plus wording
- Tower: house Premium wording
- NHC: about natural hazards cover
- Tenancy Services: insurance
- Tenancy Services: damage and repairs
- Tenancy Services: pet-related damage
- Tenancy Services: meth contamination guidelines
- New Zealand Legislation: Residential Tenancies (Managing Methamphetamine Contamination) Regulations 2026
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