Are Hot Water Cylinders Covered by Insurance in NZ?

In New Zealand, hot water cylinders themselves are not covered under your home insurance policy, but resulting damage from a hot water cylinder leaking may be covered. It all depends on the nature of the damage and your level of cover. Most standard home insurance policies will cover sudden and accidental damage, such as a burst cylinder or resulting water damage to walls, floors, and belongings.

However, insurers typically do not cover gradual deterioration, wear and tear, corrosion, or issues caused by poor maintenance. That means if your cylinder leaks slowly over time due to age or lack of servicing, repairs may not be eligible for a claim.

To ensure you're properly covered, it's essential to read your insurance policy carefully. Look for terms like “sudden damage” or “gradual damage exclusions.” Some policies offer optional add-ons or extended cover that might include appliance failure or extra protection for hot water systems. We recommend asking your insurer if you are covered for hidden gradual damage.

If you’re upgrading or installing a new cylinder, inform your insurance provider. They may want to note it in your policy, especially if it’s a gas or solar unit, or if it changes the value or risk profile of your home. Keeping your cylinder well-maintained and serviced also helps ensure your claim is more likely to be accepted in the event of a failure.