Renting out your former home in NZ: insurance questions to settle

Tell the insurer how the home will be used

If you are moving out and letting your former home, contact your insurer before the rental starts. ICNZ lists renting out a house among the changes to tell an insurer about. Tenancy Services says landlords should make sure their property cover is for a rental. Ask the insurer what needs to change in the existing policy and when the revised arrangement would start. Get the answer in writing.

Give the insurer the actual plan: when you leave, when the tenancy begins, whether the home will stand empty between occupants, and whether you will leave any furniture. If the use may alternate between your own occupation and letting, describe that pattern too. Do not assume the policy you held while living there continues on the same terms.

Separate the building, your items and the tenant's items

Take the current house policy schedule and wording into the conversation. Check the insured address, building details, sum insured, excess and any conditions about occupation, vacancy or inspections. Ask whether any proposed landlord benefits, such as cover linked to tenant damage or loss of rent, are included, optional or unavailable under the policy being discussed. Tenancy Services notes that policies can cover vacancy periods or tenant damage; it does not say every policy does.

If you are leaving furniture or appliances for tenants, make a separate list and ask how those items are treated. Your tenant's belongings are a different matter: Tenancy Services says a landlord's property insurance does not cover them. Keep a copy of the insurer's reply with your policy records.

Check the insurance statement for a new tenancy

For a new tenancy agreement, Tenancy Services requires insurance information stating whether the property is insured and the excess amount of relevant policies. The agreement must also tell tenants that the policy is available on request. If that information changes, Tenancy Services says tenants need to be told within a reasonable time. Use its insurance statement guidance to prepare the agreement; a property manager or tenancy specialist can help with the legal document.

The insurance statement is separate from deciding what cover suits you. It also does not mean insurance is compulsory for every rental property. Record the actual policy details and ask the insurer which excess applies to the rental property before filling in the statement.

Keep one record for the handover

• The date your occupation ends, the rental start date and any expected empty period.
• The insurer's written response, updated schedule and wording, including any conditions you must follow.
• A list of furniture or other items you own that will stay at the property.
• The insurance statement supplied with the tenancy agreement and any later updates.

For a discussion about your home and landlord insurance options, contact James with a short outline of the change. Leave policy numbers and tenant details out of the first web message. The first meeting checklist can help organise the documents to bring privately.