House insurance is one of those arrangements that runs quietly in the background until something goes wrong. A storm takes part of the roof, a hot water cylinder bursts, a tree comes down across the fence. For a couple who have separated but still co-own the house, a claim raises questions that never came up while they were living together: whose name is on the policy, who talks to the insurer, and where the payout goes.
This is a practical overview of what tends to happen, and where to slow down and get proper advice.
Check the policy before anything else
Find the policy schedule and read it properly. It will show who the named insured parties are, the sum insured, the excess, and whether a mortgage lender is noted on the policy. Many couples set up house insurance years ago and have not looked at it since.
Things to look for:
- Named insured. If both owners are named, both usually have an interest in any claim.
- Occupancy conditions. Some policies have rules about the house being left unoccupied for a period, often 60 days or more. If both people have moved out while the house is on the market, this can matter.
- Notification requirements. Most insurers expect to be told about material changes, which may include one owner moving out or the house being rented.
- Interested parties. A bank with a mortgage over the house may need to be involved in a large payout.
If anything in the policy is unclear, ring the insurer and ask. It is far better to understand the conditions before a claim than after one is declined.
Lodging the claim
When damage happens, the immediate steps are the same as for any homeowner: make the house safe, stop further damage where reasonable, and record everything with dated photos. Keep receipts for emergency work such as tarping a roof or calling a plumber to shut off a burst pipe.
Then tell the other owner, in writing, the same day. Separated co-owners often find it works best to agree that one person lodges the claim and deals with the assessor, while the other is copied into all correspondence. Insurers deal with this situation regularly and can usually note both parties on the claim file.
When things get complicated
Some claims are simple. Others are not, and separation adds a layer of complexity. Questions that come up include:
- Whether the payout should go towards repairs or be held until the house is sold.
- What happens if one owner wants a cash settlement and the other wants the house repaired.
- How a claim affects the sale, especially if a buyer has already signed.
- Whether the insurer can decline or reduce a claim because of a change in occupancy that was not disclosed.
These are not questions to settle by guesswork. Each owner should get independent advice on their own position. For disputes with an insurer, or where a claim has been declined, talking to insurance law specialists can clarify what the policy actually covers and what options are open. For questions about how a payout fits within a wider property settlement, separate independent advice is the safer path.
If a dispute with the insurer cannot be resolved directly, New Zealand insurers belong to approved dispute resolution schemes, which can review complaints at no cost to the policyholder. The insurer’s complaint process will explain which scheme applies.
Keeping insurance in place during a sale
One of the most common mistakes during separation is letting the house insurance lapse. Payments may have come out of a joint account that has since been closed, or each person may assume the other is handling it. A lapsed policy on a house that is about to be sold is a serious risk, and buyers’ banks will also expect cover to be in place up to settlement.
It is worth setting a reminder to check the policy is current every few months until the house is sold or transferred.
Frequently asked questions
Can one owner make an insurance claim without the other? It depends on the policy and how it is set up. Many insurers will deal with one named party but expect both to be informed, so check with the insurer.
Does an empty house affect insurance cover? It can. Many policies have unoccupancy conditions, so tell the insurer if nobody is living in the house.
What if the insurer declines the claim? Ask for the reasons in writing, use the insurer’s complaints process, and get independent advice on whether to take it further.