Media release

Nearly half of Kiwi homeowners have deliberately selected a higher excess on their home insurance

27 July 2026

New Vero Insurance research reveals a growing shift towards voluntary higher excesses as households manage everyday expenses.

New research from Vero Insurance has found almost half (46%) of insured homeowners have deliberately chosen a higher insurance excess than the standard amount.

The nationwide Talbot Mills Research survey of 1,172 insured homeowners found more than half (57%) report that their home insurance excess is above $500, despite standard excesses ranging between $300-$500.

Nichola Young, Executive Manager - Pricing and Underwriting at Vero, said the findings mirror a trend the business had noticed, of more customers selecting higher excesses since mid 2022.

For Vero’s home insurance customers, uptake of $1,000 excesses has increased, while selection of the $400 excess option has declined.

“We've seen more customers voluntarily increasing their excess, and we noticed that this shift coincided with broader cost-of-living pressures. We wanted to better understand how widespread that trend is and what was driving those decisions.”

The research found affordability was the primary driver behind the trend, with 66% of homeowners who deliberately increased their excess saying they did so to reduce their insurance premium.

“It shows that our customers are making trade-offs to balance the cost of premiums with the level of risk they're willing to carry. The choice ultimately sits with the customer, but the important thing is understanding what that means if you ever need to make a claim."

Advice can help customers understand the benefits and drawbacks of higher excesses

While increasing an excess can reduce premiums, Young says the savings should be carefully weighed against the additional financial risk.

"It's important to understand that increasing your excess won't necessarily offset every driver of rising insurance costs. Premium increases in recent years have been influenced by factors such as the growing cost of natural hazards, and increased taxes and levies. If your premium is higher because your home faces greater flood or weather risk, increasing your excess is unlikely to significantly reduce your premium."

Young says that if customers are considering making changes to their insurance to manage household costs, a broker can help them to understand the trade-offs.

A very high excess (e.g. $5,000) could reduce the cost of an average premium by around $300 a year, depending on the factors driving the premium.

“Rather than considering premium savings in isolation, we encourage people to have a conversation with a broker or adviser. They can help you understand the different options available and ensure that you are weighing up the benefits of any savings with the risk of paying a higher excess if you need to make a claim.”

The research suggests that insurance customers are interested in the potential of higher excesses to reduce their premiums, but that many are not actively reviewing their policy with this in mind.

While 63% of respondents said they would consider increasing their excess if insurance premiums increased significantly, two in five insured homeowners (42%) said they did not know what their current home insurance excess was.

Excess changes can be a good option to maintain cover

Young says the research contained some encouraging findings, including that most homeowners were comfortable with the insurance choices they have made, and that 57% believed their current excess had delivered noticeable savings on their premium.

“We know times have been tough for a few years and there is concern that homeowners may be underinsuring their homes to make ends meet. A higher excess can be a way to manage the cost of premiums, particularly temporarily, while making sure you still have cover in place if you’re hit by a really big, financially devastating disaster – such as a house fire or a major flood.”

The research found 9% of homeowners who chose a higher excess viewed it as a temporary measure before intending to return to a standard excess in the future.

Ultimately, Young encouraged customers to regularly review their insurance needs as their personal circumstances, rebuild costs and natural hazard risks continue to evolve.

"A regular review gives you the opportunity to make sure your cover, your sum insured and your excess still reflect your circumstances and your risk appetite. A conversation with a broker can help you make informed decisions and ensure you're balancing affordability with the right level of protection," Young said.

About Vero New Zealand:

Vero is one of New Zealand’s leading insurance providers, offering a wide range of personal and commercial insurance solutions. With a strong focus on customer service and innovation, Vero helps individuals and businesses protect what matters most and recover quickly when the unexpected happens. www.vero.co.nz