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?