Multi-unit insurance option

Neil asks:
(updated on Monday, February 29th 2016)

I own a rental property in Auckland which comprises of two, two-bed units on one title.They have separate power/land lines but one council rate bill and one water bill. The units are currently insured as two separate houses, as instructed by the insurance company, for around $1100. Is it possible to reduce the cost by insuring as multi units?

Our Experts Answer:

My thoughts are that the house could be insured under one policy (as it is on one title) but needs to be noted as two units so the correct FSL and EQC levies can be charged. There would be a premium saving in doing this. However, the disadvantage is that any policy sub-limits that are not per unit but are per policy - e.g: hidden gradual damage would apply.

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50