Avoiding a dodgy do-up

Many house buyers are skipping the important steps of due diligence when looking at potential house purchases.

But Nancye Maloni, Underwriting Manager at AA Insurance and insurance expert who shares her insights on the new season of TVNZ’s AA Insurance Location, Location, Location New Zealand, explain how important it is to be well-informed to avoid costly repairs further down the track.

Building inspections, LIM reports and insurability reviews can seem overwhelming to even the most seasoned property buyer.

New research by AA Insurance shows that just 50% of house hunters are investing in a building inspection prior to purchase, with even fewer (42%) checking how a property’s condition and location could impact their insurance. On top of that, Kiwis say they’re not confident spotting potential problems with a property with buyers aged between 40 and 59 being less confident in identifying potential problems on their own.

Nancye says it’s vital that house buyers are informed so that their dream home doesn’t turn into a surprise dodgy do-up down the track.

“Skipping steps like building reports, insurability and LIM reviews can leave buyers exposed to hidden problems, which can end up with costly unexpected repairs, cause legal headaches, make it hard to get insurance and even put your safety at risk,” Nancye says.

In addition to a building report, Nancye says that reviewing a Land Information Memorandum, or LIM, is an important safeguard because it highlights risks like flooding, drainage problems or any unconsented work that could affect your renovation plans or insurance costs. The Record of Title will also confirm any legal restrictions or agreements tied to the property. Buyers are encouraged to seek advice from a lawyer or conveyancer, who can help interpret these documents and ensure all legal obligations and risks are understood before purchase.

Nancye says working on TVNZ’s AA Insurance Location, Location, Location New Zealand let her share practical insurance tips with house hunters to help them make informed decisions on their home-buying journey.

“It was about empowering them with knowledge so they could feel confident about one of the biggest purchases of their lives,” she says.

“Talking to home buyers at the very start of their journey meant I could share insights that could genuinely help them. Hearing their questions and concerns gave me a deeper understanding of what matters most to buyers and how insurance can support them through those decisions.”

Nancye says insurance is an important area in homeownership that’s often overlooked.

“It’s not a ‘set and forget’ – insurance should evolve as your life and home does. Making sure your cover reflects the true cost to rebuild, not just the market value, is essential. So, while emotion plays a role, it’s the practical considerations that help protect your investment long term.”

Older homes or those with outdated wiring, prior damage, or a history of Natural Hazard Commission (NHC) claims may need repairs before insurance cover is approved, which could also attract higher premiums, or face extra conditions, especially in flood-prone areas.

Buyers are also encouraged to look for common warning signs like musty smells, bubbling paint, mould around windows, sticking doors or uneven floors. These hidden signs can often point to bigger problems related to ventilation, foundations or leaks. 

Nancye says buying a home is one of the most exciting – and sometimes overwhelming – experiences, and emotional connection to a home is both natural and important.

“If you're selling, it's the place where life has happened, where memories were made, so it’s completely understandable to feel attached. And if you're buying, sometimes a house just feels right. That instinct shouldn’t be ignored, but it’s important to balance emotion with practical considerations,” she says.

Nancye has gained valuable insight throughout her career that can help make the journey to home ownership as smooth as possible.

“From understanding the true cost of ownership to making sure your insurance reflects the actual rebuild value of your home (Sum Insured), preparation is everything,” she says.

“I also learned that flexibility is key. Things don’t always go to plan – whether it’s a delay in settlement, unexpected repairs, or changes in your financial situation. Having a buffer and being realistic about what you can manage makes the process much smoother.

“I’ve also come to appreciate how valuable it is to ask questions. Whether it’s about insurance, council regulations, or renovation plans – there’s no such thing as a silly question when it comes to protecting your investment and your peace of mind.”

See Right at Home | AA Insurance for more information on due diligence before buying a house.

Nancye shares practical insurance tips with house hunters searching for their dream home as part of the new season of TVNZ’s AA Insurance Location, Location, Location New Zealand airing Sundays 7:30pm on TVNZ 1 and TVNZ+.