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Insurance declined on new purchase
We have a property that is to settle in a few days and have been declined insurance and interested has anyone experienced what we have
We have never been declined before, we currently have our own home, car, contents and two rental properties. So we went to a broker because our current insurance company is very high charges now following the earthquake, to review all our insurances. We recieved an offer last week from Vero that was competative, however today they declined to insure our new property because it is in what the council determine to be a high instability area? Go figure, the current owner has the property insured and we have never claimed or been declined previously. The broker has tried to get insurance from elsewhere and have come back with a questionaire from NZI to try and get insurance. The questionaire is about high instability property, has anyone else had experience with this form. The property in question has been there 30 years without a problem, a large number of other house are built in this area so it is not an issue to this particular house. There is not section 37 or 72 or whatever on the title.
I am now worried we won't be able to insure the property, and now if I go back to my current insurer and tell them we have been declined and the reasoning why. If this is the situation then probably 1/5 of properties are marked by this council as being in a high instability area (as per the hazard maps on their GIS) and this will be a problem for others?
If I can't insure, I can't get the loan, I can't settle.....penality interest, ask for an extension, ask the current owner in is there insurer, what do I do?
Last edited by unhinged; 10-04-2012 at 08:59 PM.
That is correct
Originally Posted by eri
northland is supposed to be the most unlikely area in nz to get a major quake
so i guess we had better all start looking for stability zones on GIS hazard maps
not sure what to do about the insurance inability
not sure what anyone could do......
May I suggest that you have a talk to the existing owner about taking over their insurance...see whether that is possible under the terms of their policy?
I'm confused and it's probably my misunderstanding, but I thought insurance cover excluded slippage and subsidence anyway. Earthquakes are handled by EQC up to what I'd think is a fair amount given a northland (non-earthquake) location. What's the problem?
Exactly, Northland as I understand it is the least earthquake prone area of NZ and if the property was an insurance risk due to high instability this would be marked on the title with a section 37 or something, I checked this with our solictor and also the engineering company that prepared the report for th council.
Originally Posted by TheLiberalLeft
Anyway we have got insurance this morning with our current provider, but this is $300/ year more than Vero had quoted.
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