Email: Password:
Forgot Password

News Archive

Back to List Back to list
Previous Article Next Article

Under-insured due to rising costs

08 May 2017

Rapidly rising building costs are leaving 85 per cent of New Zealand homeowners under-insured, an industry expert says.


Jo Mason, chief executive of insurance firm NZ Brokers, says rising costs and changes to policy wording mean homeowners are uninsured by an average of 28 per cent.

"In the past six months we have had several devastating flood, fire, seismic and adverse weather incidents around the country," Mason said.

"It is crucial that homeowners are aware of what it would cost to rebuild their house from scratch and review this regularly," she said.

Mason said that with building prices rising across the country by up to 17 per cent, it's urgent for homeowners to check they are fully insured for their property, not just a portion of it.

"My advice to homeowners is don't take unnecessary risks, consult with an insurance broker in your area who can assess your needs and is able to advise what type of cover is best suited."

Mason also said changes to sum insured insurance properties could affect homeowners.

"Sum insured policies limit the maximum amount your insurer will pay in the event your home is totally destroyed," Mason said.

"In an environment where building costs are rising at around 7-17 per cent each year, there is no guarantee that the amount you are insured for will be enough to cover the cost of a total rebuild."

"What this means is that a house which cost $500,000 to construct just two years ago could be up to $185,000 more to rebuild today. Effectively the risk of the rebuild cost being greater than the insured value is borne entirely by the policyholder," she said.
 - NZ Herald

Previous Article Next Article

 

Professional IQ

Professional IQ College

Workshops, Online courses, webinars and Qualifications. For upcoming events         click here


Latest Papers:

Closing the Gap - Insuring your business against evolving cyber threats

iNavigator iNavigator Media Center
Provides access to a wide range of industry related media resources


Covernote Cover Note
IBANZ quarterly magazine for the latest on the intermediated insurance market.


Gary's Blog Gary's Blog
Comment on current issues.




© Copyright IBANZ, all rights reserved. Private information collected for this website is governed by our Privacy Policy. Read our Terms & Conditions
Powered by streamSWEET CMS