When you're looking for home insurance in New Zealand, the big question isn't just what you need - it's how much you’re willing to pay. The truth? There’s no single "cheapest" policy that works for everyone. But there are clear patterns in pricing, and knowing them can save you hundreds a year.

Building insurance is almost always cheaper than contents

Most homeowners in New Zealand split their cover into two parts: building and contents. Building insurance covers the structure - walls, roof, floors, permanent fixtures. Contents cover your stuff: furniture, TVs, clothes, appliances.

If you’re trying to cut costs, building insurance is almost always the cheaper option. Why? Because it’s simpler. Insurers have decades of data on how much it costs to rebuild a standard 3-bedroom house in Auckland, Wellington, or Christchurch. They use standardized cost calculators based on square meters, materials, and location. That means less guesswork, lower risk, and lower premiums.

Contents insurance? That’s trickier. How much is your couch worth? What’s the replacement cost of your 5-year-old washing machine? Insurers have to account for everything from designer sneakers to antique silverware. More variables = higher premiums.

Basic building-only cover can cost under $500/year

If you own your home outright and don’t have a mortgage, you’re not legally required to have insurance. But if you skip it entirely, you’re gambling. A single storm or burst pipe could cost you $50,000 to fix.

The cheapest viable option? Basic building-only insurance. For a standard 120m² house in Auckland, you can find policies starting at $420-$480 per year. That’s with a $1,500 excess and coverage for fire, storm, earthquake, and accidental damage. No contents. No extra perks. Just the bare minimum to protect the structure.

Compare that to a full cover policy - building + contents + optional extras like legal liability or accidental damage to personal items - which can easily hit $1,200-$1,800 a year.

Contents insurance? You can slash the cost

If you’re renting or your home is mostly furnished, contents insurance might be your main concern. But even here, there are ways to pay less.

First, don’t over-insure. A lot of people list their entire home as "everything worth $50,000." That’s often way too high. A typical 2-bedroom apartment in New Zealand has contents worth $15,000-$25,000. Insure for that. Not $40,000.

Second, choose a higher excess. Go from $500 to $1,000. That alone can drop your premium by 15-25%. You’ll pay more out-of-pocket if you claim, but if you’ve never made a claim in 5 years, it’s a smart trade-off.

Third, skip the extras. You don’t need cover for "accidental damage to your laptop" if you have a warranty. You don’t need "legal liability for pet damage" if your dog doesn’t jump on people. Every add-on adds cost.

Why some policies look cheap but aren’t

You’ll see ads for home insurance at $299/year. Sounds great, right? But read the fine print.

Many "budget" policies exclude:

• Earthquake damage (unless you pay extra)
• Water damage from burst pipes or leaks
• Storm damage to fences or driveways
• Replacement with like-for-like (instead of new-for-old)

In New Zealand, earthquakes are a real risk. If your policy doesn’t include it - even if it’s cheap - you’re not really protected. A $299 policy that excludes earthquakes is worse than no policy at all.

The same goes for "like-for-like" replacement. If your 10-year-old fridge is stolen, and the insurer only pays you $500 (what it’s worth now), you’ll need $1,200 to replace it. That’s a $700 gap you didn’t expect.

Who pays the least? The people who skip contents

The cheapest home insurance in New Zealand isn’t the one with the lowest price tag. It’s the one that matches your actual needs.

If you’re a homeowner with no mortgage, own a modest house, and don’t have expensive belongings - go for building-only cover. You’ll pay under $500/year. That’s the real bargain.

If you rent, you’re probably better off with contents-only insurance. Landlords usually cover the building. Your stuff? That’s your responsibility. A $300-$450 contents policy with a $1,000 excess covers most renters.

If you have a mortgage? Your lender will require building insurance. But you can still choose the cheapest building-only option. Then decide whether contents is worth it based on your lifestyle.

How to find the cheapest policy - 3 steps

1. Calculate your rebuild cost. Use the Civil Defence rebuild cost calculator (it’s free and government-run). Don’t guess. Use the number it gives you.
2. Inventory your contents. Go room by room. Estimate replacement value. Don’t include things you’d replace anyway (like socks or toiletries). Use a spreadsheet. Be honest.
3. Compare only policies that include earthquake cover. Filter out anything that doesn’t. Then pick the one with the lowest premium that covers your rebuild cost and your contents value.

What’s not worth the money

Stop paying for:

• "Accidental damage" unless you have kids or pets
• "Home emergency cover" (plumbing, electrical) - it’s often a separate service with high call-out fees
• "New-for-old" on everything - upgrade it only for high-value items like electronics
• "Garden cover" unless you’ve spent $10,000 on landscaping

These are upsells. They make the insurer’s profit margin bigger. They rarely help you.

Real numbers from 2025

Here’s what people in Auckland actually paid in 2025:

• Building-only (120m² house): $465/year
• Building + contents (basic, $20k value): $980/year
• Building + contents (full, $40k value, new-for-old, extra cover): $1,670/year
• Contents-only (rental apartment): $380/year

The cheapest? Building-only. The most common? Building + basic contents. The most overpriced? Full cover with every add-on.

Bottom line

The cheapest home insurance in New Zealand isn’t about finding the lowest number. It’s about removing what you don’t need. If you own your home and have little in it, building-only is your best bet. If you rent, focus on contents. Skip the extras. Choose a higher excess. And always, always make sure earthquake cover is included.

You can save $1,000 a year without giving up real protection. You just have to know what matters - and what doesn’t.