Tower Insurance Products in NZ
Tower offers a comprehensive range of personal insurance products covering home, contents, car, business, travel, and life insurance. Their core personal insurance products are home and contents insurance, motor vehicle insurance, and boat and caravan insurance. Tower is primarily distributed through its own direct channel (online and phone) rather than through brokers, keeping overhead costs lower and allowing competitive pricing for direct customers.
Tower's Risk-Based Pricing Approach
Tower was the first major NZ insurer to move to fully risk-based pricing for home insurance. Traditional NZ insurance used community rating — everyone in a region paid broadly the same premium. Tower now uses detailed data on individual property risk factors including flood zone, earthquake risk zone, proximity to fire hazards, and building construction type to price premiums differently for each property. This means some properties pay significantly less than the average (low-risk properties get rewarded) while high-risk properties pay much more. Following Cyclone Gabrielle and other natural events, this approach has become increasingly relevant across the industry.
Tower Home Insurance: Key Features 2026
| FeatureTower HomeTower CarTower ContentsTower Travel |
| Cover typeSpecified sum insuredMarket/agreed valueSpecified sum insuredMedical + cancellation |
| EQC includedYesN/AYesN/A |
| Online quotingYesYesYesYes |
| Multi-policy discountYesYesYesN/A |
| Claims appYesYesYesN/A |
| Excess optionsMultiple tiersMultiple tiersMultiple tiersMultiple tiers |
Tower Claims Experience
Tower's claims process is available online through their app or website, by phone, or through their customer service team. They aim to respond to new claims within 2 business days. Following major natural disaster events (where Tower holds EQC-related claims), response times can extend. Tower's claims satisfaction scores in independent surveys have been generally positive, with the digital claims lodgement process receiving particular praise. Tower uses a panel of approved repairers and builders for major claims, though you can sometimes use your own contractor by agreement.
Tower Car Insurance
Tower's car insurance is available as comprehensive, third party fire and theft, or third party only. Tower allows you to choose your agreed value or market value basis and offers named driver discounts, multi-car discounts, and loyalty pricing. Their online quoting system is one of the faster and more transparent in the NZ market. Tower's car insurance includes 24/7 roadside assistance as an optional add-on. One distinctive feature is Tower's "My Tower" app, which provides policy management, claims lodgement, and roadside assistance requests in one place.
Tower vs AMI, State and AA Insurance
Tower competes primarily with AMI, State Insurance, and AA Insurance in the personal lines (home, contents, car) market. AMI and State are both owned by IAG Australia, giving them significant scale advantages. AA Insurance (joint venture between AA New Zealand and Suncorp) is a strong competitor. Pricing comparison depends heavily on your specific property and risk profile — for low-risk properties, Tower's risk-based pricing often results in competitive or below-market premiums. For high-risk properties, Tower may be more expensive. Use iselect.co.nz or canstar.co.nz to compare quotes from Tower and competitors based on your specific details.
Frequently asked questions
Is Tower Insurance a good company in NZ?
Tower has a strong reputation in NZ, particularly for its transparent risk-based pricing and straightforward digital experience. It is a NZX-listed company with a long operating history and solid financial backing. Customer satisfaction surveys generally rate Tower positively for product clarity and digital service. Claims satisfaction is good for routine claims, though major natural disaster events can stretch any insurer's capacity. Tower is a legitimate and recommended option to compare when shopping for home, contents, or car insurance in NZ.
Why is Tower Insurance cheaper or more expensive than other NZ insurers?
Tower's risk-based pricing means your premium is specifically calibrated to your property's risk profile. If your home is in a low flood-risk, low-earthquake-risk area with good construction standards, Tower will likely price you very competitively — often below AMI and State. If your property is in a high-risk zone (flood plain, known liquefaction area, coastal), Tower may price significantly above the market. This is intended — Tower is essentially saying "we will insure anyone, but you'll pay what your risk actually costs." Other insurers still using community rating may look cheaper for high-risk properties by effectively cross-subsidising them with low-risk customers.
How do I make a claim with Tower Insurance?
You can make a Tower Insurance claim online at tower.co.nz, through the My Tower app, or by calling their claims team. For emergency situations (e.g. a fire, burst pipe causing immediate damage), call Tower's 24/7 emergency line immediately. For non-emergency claims, gather relevant photos and documentation before submitting. Tower will acknowledge your claim and assign a claims consultant who will guide you through the repair or settlement process. Tower aims to assess straightforward claims quickly (within 5–10 business days for standard claims). For large or complex claims, the timeline is longer and may involve an assessor visiting the property.
Does Tower Insurance cover earthquakes in NZ?
Yes — Tower home insurance includes the EQC (Natural Hazards Commission) levy, which provides government-backed coverage for the first $300,000 plus GST of natural hazard damage including earthquakes. Tower's own policy covers the excess above the EQC cap. When a major earthquake event occurs, claims are managed by both Tower (as EQC's statutory agent) and Tower's own private cover. The process can be complex for major events — Tower has experience managing this from the Canterbury earthquake sequence and subsequent events. Always report earthquake damage promptly to both Tower and the Natural Hazards Commission.
What is Tower's multi-policy discount?
Tower offers a discount when you hold multiple policies with them — for example, combining home and contents insurance, or home and car insurance. The multi-policy discount typically ranges from 5–15% depending on the combination and number of policies. This can make Tower competitive even if their single-policy price is slightly higher than a competitor's, as the bundled saving may tip the balance. When comparing Tower to other providers, always get quotes for your full insurance package (home + contents + car) to see the total cost after multi-policy discounts.
Is Tower Insurance available throughout all of New Zealand?
Tower operates nationally and provides insurance to homeowners and car owners throughout New Zealand, including rural areas and regions that some insurers have pulled back from following natural disaster events. However, Tower's risk-based pricing means premiums for high-risk properties in flood-prone or coastal areas will be substantially higher than for lower-risk urban properties. Tower has been transparent about its approach in post-Cyclone Gabrielle discussions, indicating it will continue to offer coverage in high-risk areas but at pricing that reflects the actual risk rather than cross-subsidising it from low-risk customers.
How does Tower compare to AA Insurance in NZ?
Both Tower and AA Insurance are respected NZ personal lines insurers with strong brand recognition. The main differences: AA Insurance (a Suncorp and AA New Zealand joint venture) uses more traditional community-based pricing, while Tower uses risk-based pricing. AA Insurance has strong brand recognition from the AA membership association and may appeal to AA members who receive loyalty benefits. Tower's digital experience and app are generally well-rated. Price comparisons depend on your specific risk profile — Tower wins on low-risk properties; AA Insurance may be more competitive on higher-risk ones. Getting quotes from both for your specific situation is the only reliable way to compare.
