The renewal letter arrives, and the number has jumped again. Or you’ve changed insurers, filled in the form honestly about the cracks and the sloping floor, and been told they can’t cover the house. Or they’ll cover it, but not the damage, and only if you get an engineer’s report first.
If you own a damaged home in Christchurch, you may be facing one of these. It’s stressful, and it can leave you feeling stuck in a house that costs more and more to keep. This guide explains what’s going on and what your options are.
Why insurance is getting harder in Christchurch
It’s not just you. Home insurance has become a lot more expensive across New Zealand, and Christchurch has felt it more than most places.
A government Cabinet paper from January 2026 found that home insurance premiums have grown at three times the rate of inflation since 2011, with a 40% rise in just the last two years. It also noted that cover is getting harder to get in areas with both earthquake and flood risk. That describes a lot of Christchurch.
Insurers are also pricing each house more closely by its own risks, rather than spreading the cost across everyone. Some now rate individual properties for earthquake, flood, landslide and sea surge. That means two houses on the same street can get very different quotes.
For a home that already has earthquake damage, all of this adds up. The house is seen as higher risk, and the price reflects it.
Insured, but the damage isn’t covered
Many damaged Christchurch homes are still insured. Often they’ve been on the same policy for years, and it simply keeps renewing.
The catch is that existing damage is usually excluded. Your insurer will still cover the house for new events, like a fire or a future earthquake, but they won’t pay to fix the cracks or floors that were already there. If that old damage gets worse, it’s generally on you.
So many owners end up paying more each year for a policy that doesn’t cover the biggest problem with their home.
When cover is declined or comes with conditions
Getting a new policy for a damaged home is harder. When you apply, insurers ask about known damage, and you must answer honestly. Depending on what you tell them, they might:
- decline to insure the home at all
- insure it but exclude the existing damage
- ask for repairs to be done before they’ll offer cover
- ask for an engineer’s report or a code compliance certificate first
- offer cover at a much higher price or with a large excess
This often happens at the worst moment: when your current insurer won’t renew, when you’re trying to switch to a cheaper policy, or when a family member has inherited the home and needs to put cover in their own name.
Why insurance problems make a home harder to sell
Insurance doesn’t just affect you. It affects your buyers too.
Almost every buyer needs a mortgage, and banks won’t lend on a home that can’t be insured. If a buyer’s insurer looks at the property and says no, the buyer can’t get finance, and the sale falls over. Even when cover is offered, a high premium or a big exclusion can put buyers off or push their offer down.
That leaves you with a smaller pool of buyers, mostly cash buyers and investors, who know the home is hard to insure and will price that in.
Your options
1. Shop around, or talk to a broker
Not every insurer prices risk the same way. An insurance broker can approach several insurers for you and may find cover you couldn’t get on your own. It’s worth trying, especially if you want to stay in the home.
2. Repair the home to get it insurable
Fixing the damage and getting it signed off can open the door to normal cover again. But the repairs need to be paid for up front, they can take months, and earthquake repairs in Christchurch can be expensive, especially if the foundations are involved. You may also be living without full cover while the work is done.
3. Sell the home As Is Where Is
If the insurance situation is the final straw, you can sell the home as it is. My New Start doesn’t need a bank loan to buy, so whether the home can be insured doesn’t stop us making an offer. We buy homes with rising premiums, declined applications, excluded damage, and no insurance at all.
We’ve bought more than 450 earthquake-damaged and run-down homes across Canterbury. After we buy, we carry out the repairs needed to bring the home back to a fully insurable standard, so that problem becomes ours, not yours.
Here’s how it works:
- Kane or Ronan visits and looks over the home
- you can get a written, unconditional offer within 24 hours of the visit
- no repairs, engineer’s reports or insurance sign-offs needed first
- no agent fees and no open homes
- you choose the settlement date
- the price we offer is the price you receive
If your home is already uninsured, you might also find our post Can You Sell an Uninsured Home in Canterbury? helpful.
A few things to keep in mind
- Always be honest with your insurer. Not disclosing known damage can give them grounds to cancel your policy or refuse a claim.
- Think carefully before letting cover lapse. An uninsured home is exposed to fire, storms and future earthquakes. If you have a mortgage, your lender will almost certainly require insurance, so talk to them first.
- Keep your paperwork. Renewal letters, decline letters and any engineer’s or builder’s reports are useful whichever way you decide to go.
Let’s talk about your options
If your insurance is getting too expensive, or you’ve been declined, and you’re wondering whether it’s time to sell, we’re happy to have a no-pressure chat. Call us any time on 0800 697 827, or book a free assessment online.
