New Zealand:House insurance gradually becoming out-of-reach for New Zealanders

House insurance is becoming increasingly out of reach for New Zealanders as cost of house insurance in the country has risen by a staggering 916% since 2000. A new report has called for urgent action to prevent insurance becoming inaccessible for the Kiwis.

The new 54-page Will you be able to get home insurance by 2035? published in August 2025 by consumer watchdog organisation Consumer NZ says insurance is getting harder to access and the need for it will only grow.

Consumer NZ consumer investigative team leader and author of the report Rebecca Styles said, ‘Will you be able to get home Insurance by 2035? If we don’t act now, it is entirely possible that many New Zealanders will not be able to get insurance at all by 2035.” 

Consumer NZ’s report reveals that house insurance costs have risen by a staggering 916% since 2000, according to Stats NZ. The independent, non-profit organisation has called on the central government to take the lead and work with local government and insurers on a national solution to ensure insurance remains available and affordable. 

Consumer wants to see the development of a climate adaptation framework, increased oversight of the insurance industry and increased consumer protections.

Major findings of the report include:

1. Costs have skyrocketed – Since 2000, the cost of house insurance has increased 916% (Stats NZ).  
2. More people are dropping cover due to cost – Among those who don’t currently have house insurance, around 7% dropped it because of cost in 2022. By 2025, that percentage had more than doubled to 17%. 
3. Insurance now ranks in the top four financial concerns for New Zealanders – sitting just behind housing, food and overcoming household debt. 
4. Trust in insurers is low – Consumers report dissatisfaction with the claims process, delays in settlements and a lack of transparency when it comes to pricing. 
5. Risk-based pricing lacks clarity – Consumers don’t have access to the data that determine their premiums and have no way to challenge the prices. 
6. It’s hard to shop around – Comparison is difficult, online quotes aren't always available and options are limited, especially for homes in high-risk areas. 
7. Insurers’ profits are rebounding – Despite payouts following weather events, insurers are showing strong profit margins. Trans-Tasman insurers appear to make more money in New Zealand than Australia.

The report lays out the following recommendations:

1. Establish a national climate adaptation framework – The government should lead the development of a plan to help communities manage climate risks. 
2. Better understand home and contents market competition – The Financial Markets Authority should investigate insurance pricing for fairness. The Commerce Commission should carry out a market study into competition in the insurance sector.  
3. Improve data transparency and accountability – Insurers should clearly explain how risk influences pricing and ensure policy updates are communicated in a transparent, timely manner. 
4. Improve the overall claims experience – Insurers should communicate clearly with customers and complete claims in a timely manner. 
5. Empower consumers with innovative policies and resources – Help homeowners access risk data and easily compare options. Insurers should incentivise homeowners to reduce the risk of flood damage to their properties. 
6. Strengthen national coverage for communities – Review and expand the Natural Hazards Commission mandate to cover flood damage and better protect vulnerable communities. 

Ms Styles said, “Insurance now ranks as one of New Zealanders’ top four financial concerns, behind housing, food and household debt. Our research shows people are dropping cover or being priced out entirely, and this will only get worse without serious intervention.”

The government should ensure the Natural Hazards Commission is future fit to serve communities facing the challenges of climate change.

“If insurance becomes a luxury only available to a privileged few, the impacts on communities, our economy and society will be severe. We need a plan, and we need to start implementing that plan now,” said Ms Styles.