More than two-thirds of respondents in Consumer NZ’s latest insurance satisfaction survey were concerned about the cost of house insurance, with 8% of homeowners letting their policy lapse due to high costs.
“This continues a pattern we started to see last year. We urge New Zealanders to review their current level of cover, and shop around,” Ms Rebecca Styles, investigative team leader at Consumer NZ, said in a statement.
“It’s likely you’ll find a better deal and can maintain some level of protection — which is better than no cover at all.”
In the past 10 years, house insurance has increased by 97%, while contents insurance has gone up by 48%.
“Wellington has been the hardest hit with premium price increases for a standard house – up 29% from this time last year. It was followed by Auckland up 26%.
“For a large house, premium prices rose most in Auckland – up 28% – followed by Hamilton on 24%. Dunedin also had increases for standard- and large-house premiums, up 12% and 9%, respectively.”
Reasons for premium hikes
Ms Styles says that the cost of reinsurance, extreme weather events and increased use of risk-based pricing on individual properties are all factors in the price rises.
“Insurers also now have access to granular and more accurate information about the risks posed to particular areas and properties in New Zealand.
“Given the more frequent and extreme weather events Aotearoa is experiencing, and their related claims, the cost of insuring properties has gone up, and these costs are being passed onto consumers.”
“The best thing people can do is to review their current level of cover, shop around and get ready to switch when you find a cheaper policy – they are out there.”
Consumer’s insurance satisfaction survey showed that only one in five respondents were likely to change insurers in the next 12 months.
