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 1.99
Kainga Ora - First Home Buyer Special 2.25
HSBC Premier 2.25
Westpac Special 2.29
TSB Special 2.29
BNZ - Classic 2.29
ASB Bank 2.29
ANZ Special 2.29
Kiwibank Special 2.35
ICBC 2.45
SBS Bank Special 2.49
Heartland Bank - Online 2.35
HSBC Premier 2.35
ICBC 2.45
TSB Special 2.49
SBS Bank Special 2.59
BNZ - Classic 2.59
ASB Bank 2.59
China Construction Bank Special 2.65
Kiwibank Special 2.65
The Co-operative Bank - Owner Occ 2.69
AIA 2.69
HSBC Premier 2.89
SBS Bank Special 2.99
The Co-operative Bank - Owner Occ 2.99
AIA 2.99
Westpac Special 2.99
ICBC 2.99
ASB Bank 2.99
China Construction Bank Special 2.99
BNZ - Classic 2.99
TSB Special 3.19
Kiwibank Special 3.19
Heartland Bank - Online 2.50
Resimac 3.39
Kiwibank 3.40
Kiwibank - Offset 3.40
Kiwibank Special 3.40
Bluestone 3.49
Select Home Loans 3.49
ICBC 3.69
Heartland 3.95
The Co-operative Bank - Owner Occ 4.40
The Co-operative Bank - Standard 4.40