$1400 just to insure a unit!

[makanlah]

Hi, I am renewing my annual insurance cover on a 90sqm 2-bed unit. Last year it was around$780 - this year the increase has been a shock. I expected some increase, but here are the quotes I have got, with Lumley coming in highest at over $1,400. These quotes include me having a higher excess. Has anyone any advice on where I could get a cheaper but good deal? Thanks.

Based on a sum insured of $210,000 with Landlords Extension:
NZI - $2,250 excess - $1,088.41
Lumley General - $800 excess (Max) - $1,417.85
Vero - $2,750 excess - $1,072.01

[AndrewENZ]

Have you tried a broker?

[donna]

Is the location of your property a factor in the new sum insured insurance? E.g upmarket Auckland vs somewhere else?

cheers,

donna

[drelly]

Is your unit in Baghdad?

[makanlah]

Hi, it is in Pukekohe (for the uninitiated, that is in Franklin, off the southern motorway, ie south Auckland but rural south aucks). While hardly being in a Remuera/or Ponsonby-type exclusive zone, it is in the fairly respectable Hill area (though admittedly there are one or two locales in Puke that are more like Baghdad these days..). Have owned it for over a decade. Renovated it slightly two years ago with new carpet, paint, tidied up kitchen joinery and the insurance sum for that year was just the usual small percentage increase. Insurance coverage has crept up over the years, but as I said, last year when full replacement rather than sum insured, it was around $780. But now....I'm choking on my gin n tonic.

[drelly]

But now....I'm choking on my gin n tonic.

I notice you're in Singapore, so I expect you're sitting in one of those high-backed cane chairs in Raffles Hotel.
I've recently insured my properties under the old footprint prices and a 3 bed house in Whangarei of similar value was about $650. Your quotes sound really high but perhaps that's what we can expect now?

[Perry]

Was Crombie Lockwood among
those who gave you a price?

[NovInvestor]

Have you tried Tower or State?

[makanlah]

Hi Guys; tx for your comments. I have since got a quote from Crombie Lockwood:
Policy Excess $900 $1,279.41 Incl all fees and GST

So it looks as if these increases of several hundred dollars on the annual premium, are across all insurers. And as I say in my header, just to insure a 2-bedroom unit. Now having one last go, trying Tower......cheers.

[Gladdynook]

try Initio http://rentalpropertyinsurancenz.co.nz/- under written by Lumley, and typically a 2 bed unit is around 600-700.

[donna]

We've got policy with Tower and its gone up to just shy of $1000 per year for a 97sqm with Landlords extra....and on their equation of $2K per sqm - dwelling only.

The tenants will be squealing soon.

cheers,

Donna

[drelly]

Is anyone else seeing insurance increases well above the norm on the new system?

[Bob Kane]

Yep.
My PPOR full replacement insurance is currently $1100pa. Used to be around $700pa.
Proposed new premium will be around $1800pa.
I gather most house premiums will be in the $1600-2000 range.

[drelly]

Yep.
My PPOR full replacement insurance is currently $1100pa. Used to be around $700pa.
Proposed new premium will be around $1800pa.
I gather most house premiums will be in the $1600-2000 range.

Geez, sounds like it's a money grab from the insurance companies. Collusion much?

[Grundy]

Frankly these increases are staggering and only add weight to the opinion expressed on other threads that an insurance cartel is lunging. I wonder how long before joe public wakes up and maybe Commerce Commission might be forced to investigate even if only for appearances sake.