Loss of Rent benefit in a compulsory evacuation

If an authority requires your tenant to evacuate your property, your tenant is legally required to continue paying rent under the Residential Tenancies Act unless the home is uninhabitable due to damage or is contaminated by methamphetamine.

However, from 1 October 2021, where you have a Loss of Rent benefit on your policy, this benefit will also provide cover:

• if the property is temporarily vacant (it is habitable and undamaged and ready to be tenanted), and
• where you are unable to get new tenants because an official evacuation order is in place, and
• where we can reasonably expect that your property is at risk of damage, from an event that would be covered by your policy.

Cover is available whilst the evacuation notice is in effect to a maximum of the timeframe applicable under the existing Loss of Rent benefit. The most we will pay is the amount payable under the existing Loss of Rent benefit.

If your tenant has contents insurance, they may be able to claim their additional alternative/temporary accommodation costs under their insurance while they continue paying rent.

This information is only intended as a guide. Policy limits and exclusions apply.

Please refer to the policy wording for full terms and conditions or contact your broker for more information. If you have any difficulty getting in touch with your broker, you can call NZI directly on 0800 2BROKER (0800 227 653).