insuring a property without code of compliance

[phillip30]

Hi All,

does anyone know if it is possible to get insurance on a property that has notgot code of compliance. The property never got the final inspection. Anythoughts appreciated. thanks Phillip

[Maccachic]

Tell the vendors to get a CCC or certificate of acceptance - don't make it your problem could costs a fair bit.

[Aston]

You should be able to get insurance cover.

Without a CCC though, you are making it very easy for the Insurance Company to decline any claim that you may make.

[Pegasus]

We own a property that is a good rental and we want to keep longterm but it did not have everything completed for CCC. We also realised that there was little point getting a regular insurance policy as claims could potentially be declined due to them finding a loop hole. We eventually found an insurance agent who was able to provide cover for us with the lack of CCC noted on the policy as well as the things that were incomplete. For this property it was not a straight forward or cheap fix to complete the items for the CCC so we went with this insurance policy although it was dearer than our normal ones. If it was easy to,I would feel much happier to complete the work to get CCC but not always viable.
We got our insurance through:
Hayley at Insite Insurance ph 09 238 5557.
Our other properties we insure thru Tower which was cheaper but they declined to insure with no CCC.
Good luck
Pegasus

[klauster]

Not having a CCC doesn’t mean something is wrong and should not be a reason for not getting insurance. There is not a “MUST” to pay for CC’s paper and it is not a protection if you have one – look at the leaking buildings.
It is regulated resource and building consents – if you have done work with CC's permission – what is the problem?

[phillip30]

Thanks all some great points. Maccachic it is a mortgagee sale not not likely possible, Aston will need to see what is covered, cheers Pegasus will follow up, good point klauster

[Hound]

Call an established insurance broker, fairly routine enquiry from people in the process of building a house.

[Viking]

Insurers are being urged to lift the figures they use to estimate rebuild costs when working out the "default" sum insured they offer homeowners, or many people risk not having enough money to replace their houses if disaster strikes.
Leading quantity surveyor Construction Cost Consultants has just completed a report that showed a wide gap between the per square metre default rebuild costs assumed by insurers and the actual cost of the rebuild as estimated by expert quantity surveyors.
Insurers must lift the per square metre rebuild cost figures they use or that gap would leave many grossly underinsured if disaster struck, said CCC general manager Gary Caulfield.

http://www.stuff.co.nz/business/money/9935111/Homeowners-left-exposed

He also predicted the big mortgage lenders would work harder to encourage borrowers to ensure they are adequately insured. The company is soon to announce a deal with one of the banks to make quantity surveyors available at cheaper rates. "Banks and insurers know that it's in their own interests to ensure that customers have comprehensive cover, and that the increase in premiums that will result from a higher default sum - unless the customer opts to lower the sum insured, which they are free to do - will be balanced by a more accurate degree of coverage in the event of loss," Caulfield said.
The Bankers Association said it understood some banks may be looking at working with valuation professionals to provide free home replacement valuations for customers.

So to take from this we can expect the banks to want building and lim reports, valuation reports and now insurance reports from quantity surveyors.

Kinda out of control ain't it.

[Wayne]

$3300/sqm to build (and clear section etc I suppose).
Seems like a lot.

[Maccachic]

Wonder when they will print the rebuild costs of CHCH - should put things in perspective.

[Perry]

I have a similar problem that was solved by a clause that went something like:

Although not the subject of a CCC, the insured warrants that it's all been done
in a workmanship manner/standard, using appropriate materials, etc.

Then there was something to the effect that if a claim was found to be caused
by some item not meeting the above stipulations, it would be declined.

I provided photos for the item in question and the insurance was provided.