Consumer Magazine Insurance
Stormy Weather Hits New Zealand Bills Home Insurance
Insurance companies are increasing premiums to cover the cost of damage bad storm in New Zealand. Add harm to consumers already suffering from rising food and gasoline prices, Statistics New figures show Zealand the cost of home insurance has increased by 34.2% in the last five years – more than double the rate of inflation.
An insurance broker, Ahmed Anwar said one example was a house of 111 square meters in 2002 cost $ 290.26 a year to insure. This year, the same house was again assured of a premium Annual $ 325.13 – an increase of almost 35%. During the same period, the premium for a house of 360 square meters rose from $ 465.76 to $ 697.33, an increase of almost 50%.
AA Insurance chief Chris Curtin said premium increases are "absolutely" in connection with a wave of bad weather.
"We had the Manawatu and Bay of Plenty floods, snowstorms, South Island, the Gisborne earthquake and tornadoes in Taranaki. The north end has been hit by three major floods since last March, "said Curtin.
"We have at least one customer in Northland who had their house completely flooded with water, fixed it all up and moved again and has happened again. "
Between 2002 and 2007, insurance companies paid $ 406,000,000 for natural disasters, more than double the $ 174,000,000 bill between 1996 and 2001.
Mr. Curtin said, "total loss", he says, that are made when the whole house was lost, were increasingly common. "Since 2002 the average cost of home loans has increased by 100%. During the same period cost of premiums has increased by 39 percent. But after three or four years has to be transmitted. "
domestic sales of the State Insurance and support manager Mike Tully said factors such as more frequent bad weather and rising construction costs were pushing up the cost. Without However, Tower Insurance, said spokesman Kevin Meeka rising construction costs and building had a much bigger effect on home insurance premiums that time.
An insurance agent who declined to be named said insurance companies had gone through the pool of money to keep aside to pay complaints and were trying to build it again by increasing premiums.
"These things go in cycles," he said.
Security Council corporate affairs manager Terry Jordan said premiums have risen as companies sought to recover the cost of disasters, while the other people were part of an insurance as disasters and other events highlighted the value of being covered.
Mr. Jordan said that competition among suppliers of the most difficult to say affected by bad weather claims could not afford to price too quickly. The proportion of the house and the premiums paid out as claims contained has increased from 73% in 2002 to 83% in 2007.
"If you add on top of that the costs of business for the industry, which are about 25 percent, are making a loss of national property and contents. "
Consumer magazine editor David Naulls said consumers hit by rising premiums should shop around. "There is much variation between companies, even in the home and contents insurance. We looked and found 35 policies from 18 companies and was widely range of premiums. "
Naulls said he expects that the premiums continue to increase as the global climatic warming associated with increased.
Last year, the insurance industry paid $ 96,250,000 for weather-related disasters. Of that amount, $ 61,000,000 were to complaints of flooding in the Far North in July.
About the Author
Sofia is an author of several articles pertaining to Home Insurance. She is known for her expertise on the subject and on other Business and Finance related articles.
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