Stormy weather hits home insurance bills in New Zealand

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Stormy weather hits home insurance bills in New Zealand

Insurance companies are raising premiums to cover the cost of damages caused by bad storms in New Zealand. Add hurt consumers already hit with rising food and gasoline prices, “Statistics New Zealand” numbers cost housing insurance 34.2% in the past five years-more than twice the rate of inflation.

And one insurance broker, said Anwar Ahmed, for example, was the home of 111 square meters in 2002 cost $ 290.26 per year to ensure. This year, the House was the same rinsorid for an annual premium of $ 325.13-an increase of 35 per cent. During the same period, Gold Premium home 360 m2 of $ 465.76 to $ 697.33, an increase of nearly 50%.

AA Insurance said Chris Curtin, President of the premium increases were “absolutely” related to a wave of bad weather.

“We’ve had wemanawato and Bay of plenty floods and snow storms in the South of the island, Gisborne earthquake and hurricanes at Taranaki. Three major floods hit “far North” since last March, “Curtin said.

“We’ve got at least one client in Northland, which was their home completely flooded with water and fixed everything and moved back and it happens again.”

Between 2002 and 2007, insurance companies paid $ 406 million for natural disasters, more than double the $ 174 million between 1996 and 2001.

Mr. Curtin claims “total loss”, which is when the loss of the House, and have become more common. “Since 2002, the average cost of major claims 100%. During the same period the cost of insurance premiums have risen 39 per cent. But after three or four years, it has passed. “

National insurance sales and support manager Mike Tully was paid to factors such as bad weather events more frequently, and the high cost of building the highest cost. However, the spokesman said “the insurance Tower” where Kevin high construction, construction costs had a much greater impact on home insurance premiums from the weather.

Insurance broker said on condition of anonymity declined to insurance companies has been collecting money they keep aside to pay claims and trying to build it back by raising insurance premiums.

“These things go in cycles,”.

Corporate Affairs Manager said insurance Council Jordan Terry increased premiums for companies seeking to recover the cost, while the other hand taking a larger number of people with insurance, as disasters and other events that have shown the value of coverage.

Mr. Jordan said that competition between service providers means companies cannot hardest hit with allegations of bad weather put prices too quickly. Home equity rate and the contents of the claims payment increased from 73 per cent in 2002 to 38% in 2007.

“If you add on top of that business costs to the industry, and are approximately 25 per cent, they are making a loss in the family home and contents.”

Stormy weather hits home insurance bills in New Zealand

They should shop around consumer magazine editor David Knowles said consumers have higher premiums. “There is a lot of variation between companies, even home and contents insurance. We look at it and look at the policies of 35 of the 18 companies and there was a range of premiums. “

Knowles said he expected that premiums will continue to rise as weather events related to global warming has increased.

Last year, the insurance industry paid 96.250 million for weather-related disasters. So, $ 61 million of flood claims “far North” in July.

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