New Zealand homeowners have been experiencing significant insurance cost increases, with house insurance premiums surging 17.3% over one year to Q3 2024. If you're feeling the pinch of rising house insurance costs in NZ, you're not alone. The national average cost of house insurance is $2,702 annually as at Q3 2024, with monthly costs averaging $225. In this guide, we’ll explore why prices are climbing, how they vary across regions, and most importantly — what you can do about it.
Regional insights: house insurance costs across New Zealand
The average cost of house insurance in New Zealand is $2,702 as at Q3 2024. This is an increase of 17.3% over the past year and 25.8% over the past two years. Insurance costs vary significantly depending on where you live in New Zealand. Let’s look at the latest data from Q3 2024:
Location | Yearly average cost $ | Difference from the national average |
National Average | $2,702 | — |
Wellington | $4,467 | +$1,765 |
Canterbury | $2,655 | -$47 |
Auckland | $2,104 | -$598 |
Source: Quashed
Key takeaways:
Wellington Region: Currently facing the highest premium costs, with homeowners paying a staggering $1,765 more than the national average. This reflects the capital’s high earthquake risk and challenging terrain.
Canterbury: Sitting close to the national average at $2,655 per year, Canterbury’s premiums reflect the ongoing impact of seismic risk assessment following the earthquakes, though prices have stabilized somewhat compared to previous years.
Auckland: Despite being our largest city, Auckland homeowners enjoy the lowest average premiums at $2,104 annually — nearly $600 below the national average. This primarily reflects the region’s lower earthquake risk profile compared to other major centres.
Why are House insurance costs rising in NZ?
House insurance premiums in New Zealand have been steadily increasing, and climate change is one key driver behind this trend. Frequent and severe weather events like flooding and storms, coupled with region-specific risks such as Wellington’s earthquake vulnerability, are putting financial pressure on insurers. These factors have led to higher premiums for homeowners across the country.
For a detailed analysis of these trends and what they mean for Kiwi homeowners, check out our blog on Why House Insurance Premiums Are Increasing.
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How to lower house insurance costs in NZ: practical solutions
Looking to reduce your house insurance premiums? Two often-overlooked settings could save you significant money on your policy: your excess and sum insured amounts.
Increase your excess
Adjusting your excess can reduce your house insurance costs significantly. For instance, moving from a $1,000 to a $2,000 excess could lead to savings, especially when combined with other adjustments.
Review your sum insured
Setting the right sum insured helps ensure you're not paying too much in premiums while still having enough coverage if you need to rebuild. If you're considering buying a house, check out our blog post, Rethinking Insurance for First-Time Home Buyers, for insights to help you understand your options and avoid common mistakes. For more money-saving strategies, explore our guide 8 Budget Hacks for House Insurance.
How Quashed makes insurance shopping easier
We get it—finding the right house insurance can feel overwhelming. That’s why Quashed makes it simple, transparent, and tailored for you. Here’s what sets us apart:
Real-time information: Forget outdated comparisons. Quashed gives you up-to-the-minute quotes and policy details from NZ’s leading insurers. Learn about how we compare with others in our blog.
Compare policies side-by-side: Instantly see what’s covered (and what’s not) across multiple providers. Whether it’s temporary accommodation, glass cover, or natural disaster excess, we make it easy to compare all the details that matter.
Customised to your needs: Plug in your sum insured and preferred excess, and we’ll do the hard work for you. Quashed tailors the results to match your property and budget, whether you’re after premium protection or just the basics.
Save time, money, and stress: No more juggling tabs or deciphering confusing fine print. We simplify everything, so you can choose the best policy in minutes and feel confident about your decision.
With Quashed, you’re not just comparing policies—you’re taking control of your insurance journey.
Shop smarter with Quashed
Insurance just got way easier with Quashed. Compare, shop and track all your insurance in one place.
Take control of your insurance costs
Rising house insurance costs in NZ are a reality, but they don’t have to break your budget. The data shows that by making smart choices about excess levels and sum insured values, Kiwi households could lower their general insurance bills significantly.
FAQs
Why are house insurance premiums in NZ rising so quickly?
Premiums are increasing due to inflation in building costs, heightened risks from natural disasters like earthquakes and floods, global reinsurance pressures, and the impacts of climate change, which are driving up the frequency of severe weather events.
How does climate change affect house insurance premiums?
Climate change leads to more extreme weather events such as storms and flooding, increasing risks for insurers. This drives up premiums, particularly in regions like Wellington and Canterbury, where climate risks combine with earthquake exposure.
What’s the average cost of house insurance in New Zealand?
The national average cost of house insurance is $2,702 annually as at Q3 2024. This breaks down to about $225 per month. Costs vary significantly by region, with Wellington averaging $4,467 and Auckland at $2,104. For more information on the average insurance costs of insurance, read our blog.
What are some practical ways to reduce my house insurance premiums?
You can reduce premiums by adjusting your excess, ensuring your sum insured reflects actual rebuild costs, bundling your policies, and making your home more resilient with security systems and durable materials. Find out more here.
Which region in NZ has the highest house insurance costs?
Wellington has the highest house insurance premiums, averaging $4,467 annually as at Q3 2024. This is due to a combination of earthquake risks and high rebuild costs.
How can I compare house insurance policies effectively?
Using a platform like Quashed makes it easy to compare policies side-by-side in real time. You can adjust coverage, see premium impacts, and find the best policy for your needs.
Do I need to review my sum insured regularly?
Many Kiwis don’t adjust their sum insured regularly, which can lead to over-insurance or under-insurance. Reviewing this annually ensures your policy aligns with actual rebuild costs. To find out more, check out our Homeowner’s Guide to House Insurance.
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