$1400 just to insure a unit!

[speights boy]

I was reading an article and it pointed out how with the move to fixed sum insurance, a lot more risk was moving from the insurers to the banks if you have a higher LVR mortgage.

When you take out a mortgage you have to show proof of insurance.
Will the banks demand to see that each year now, to prove their security remains sufficiently insured?

[muppet]

Article on insurance in this month's
NZ Property Investor's magazine.
Worth a read.

[speights boy]

EQC negotiates $3.25b in reinsurance cover

The Earthquake Commission will pay an unprecedented $160 million for increased reinsurance cover for the 2013-14 year.
That is about four times what it was paying before the Canterbury earthquakes.

www.stuff.co.nz/business/industries/8865116/EQC-negotiates-3-25b-in-reinsurance-cover

[Leftette]

I used to work in insurance, sb. IT, working closely with the actuaries. In those days the companies were very much NZ-based and NZ-driven. Re-insurance from offshore wasn't the be-all-and-end-all of the business. It was simply a way to "insure the insurers" and that's all. I still think that's the case, but the insurers are using it as nothing more than a convenient crutch on which to lean their poor excuses for ramping up the fees. "Not us, Guvnor, it's the big mean re-insurers - bloody Johnny Foreigner again".

[speights boy]

Personally I think these excuses make NZ insurers little more than paper-pushing cashiers with no autonomy to run their business in their own country.

You appear surprised.
You expected something different?
Next you'll be accusing "New Zealand" Banks of being subject to offshore pressures when it comes to pricing their product.

[Leftette]

If you press them, they all simply shift the blame to the "reinsurers" which are all offshore and are (apparently) demanding these changes. It's such a great way of taking the focus off the NZ insurer and you can tell they've been well-trained in this, because they almost always add something like "and we have no choice otherwise they won't insure us and then we can't insure NZ's homes", so it's a take-it-or-leave-it option for which you should be grateful. Personally I think these excuses make NZ insurers little more than paper-pushing cashiers with no autonomy to run their business in their own country.

[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.

[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?

[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]

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

[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

[Gladdynook]

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

[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.

[NovInvestor]

Have you tried Tower or State?

[Perry]

Was Crombie Lockwood among
those who gave you a price?