Updated for 2025: We’ve refreshed this article to reflect the latest coverage trends and policy terms for NZ homeowners.
Plumbing problems can lead to significant damage if not addressed promptly. Understanding which issues are covered by your home insurance policy is crucial for homeowners in New Zealand.
Commonly Covered Plumbing Issues
Home insurance policies in New Zealand typically cover sudden and accidental plumbing events. Examples include:
Burst Pipes: Sudden ruptures causing water damage are generally covered, provided they aren’t due to neglect or wear and tear.
Appliance Malfunctions: Water damage resulting from unexpected failures of appliances like washing machines or dishwashers is often covered. However, repairs to the appliance itself may not be included.
Hidden Leaks: Some policies offer limited coverage for hidden gradual damage, such as leaks from internal water pipes that are not immediately visible. Coverage limits vary, typically ranging from $1,000 to $5,000.
Basement water damage by burst pipe
Exclusions and Limitations
Be aware of common exclusions:
Gradual Deterioration: Damage from long-term leaks, corrosion, or neglect is usually not covered. Regular maintenance is essential to prevent such issues.
Pre-existing Conditions: Issues existing before the policy’s inception are typically excluded. It’s advisable to have a thorough plumbing inspection when purchasing a property.
Faulty Workmanship: Damage resulting from poor installation or repairs may not be covered. Ensure all plumbing work is performed by certified professionals.
Tips to Ensure Coverage
Regular Maintenance: Schedule routine inspections to detect potential problems early.
Prompt Repairs: Address issues immediately to prevent escalation and potential claim denials.
Policy Review: Understand your policy’s specifics, including coverage limits and exclusions.
Documentation: Keep records of maintenance and repairs to support any future claims.
Need Professional Assistance?
If you’re uncertain about your coverage or need a plumbing inspection, contact Assist Trade Services. Our certified Master Plumbers can assess your plumbing system and provide guidance to ensure you’re adequately protected.
Note: Insurance policies vary. Always consult your insurance provider for policy-specific information.
Frequently Asked Questions
Yes, most NZ insurers cover sudden and accidental pipe bursts, including resulting water damage — but not wear and tear.
Not usually. Gradual damage is one of the most common exclusions unless explicitly included in your policy.
You can often claim the resulting damage, but not the cost of fixing the faulty pipe or appliance itself.
Yes, insurers may request a licensed plumber's report to support your claim — especially for hidden or recurring issues.
