Insurance Type and Cost Changes

[eri]

insurance to rise 50%?

Homeowners are facing a hefty 50 per cent rise in the cost of house insurance after a string of costly natural disasters.
The increase, adding between $200 and $300 a year to the annual premium for an average house, is much greater than was expected immediately after the Canterbury earthquake in February.
Global reinsurance companies are indicating they will increase the premiums that insurance companies must pay by up to five-fold to recover huge losses in the Asia Pacific region from the Canterbury earthquakes, the Queensland floods, Cyclone Yasi and the Japanese tsunami.



http://www.stuff.co.nz/business/mone...a-home-up-50pc

[Lisa C]

I am insured with Vero. My insurance package includes a couple of rental properties, car and contents. I have just received notice that my premiums are to increase by $4 / month or $48 per year, a long way off a 50% rise. They have also provided me with good service thus far in response to a loss of rent claim I have put in for a Christchurch property. No I'm not a Vero rep, but happy to have had a good experience with them thus far and not too offended by the smallish price hike given the circumstances.

[mortgage broker]

There is a limit to how long companies can have a large increase for. There will always be that one company which didn't have as much loss who will after while go, ummm lets get heaps of clients on board.

[flyernzl]

It interests me that Insurance companies keep on saying "this event will cost us so-and-so".

Isn't that what they are for?

When you go to a restaurant and have a $30 meal, do you hear the owner complaining "Look at that guy, he's costing us so-and-so in food"? Of course not.

Or do insurance people see their function as gathering money in but not paying it out?

[TheLiberalLeft]

Based on the ability of some to reject claims for obscure and extremely dubious fine-print reasons, I'd say that's exactly right.

[foss]

I am insured with Vero. My insurance package includes a couple of rental properties, car and contents. I have just received notice that my premiums are to increase by $4 / month or $48 per year, a long way off a 50% rise. They have also provided me with good service thus far in response to a loss of rent claim I have put in for a Christchurch property. No I'm not a Vero rep, but happy to have had a good experience with them thus far and not too offended by the smallish price hike given the circumstances.

Lisa - was your renewal in Christchurch city?

There might be hope for us yet.

i wonder how much of this media bashing on the subject is conditioning or scaremongering for us to accept rises in the future.

I read yesterday that commercial property insurance for christchurch was sky rocketing and aligning with premiums in wellington for earthquake insurance. kind of logical that one, but big increase none the less.

i'm hopeful that residential housing won't too much

[Lisa C]

Hi Foss
I'm based in Nelson, but obviously one of our properties is in Christchurch. I agree, the media have a lot to answer for, get people all wound up for no reason. Perhaps our insurance will rise further I don't know, but for me its just one day at a time and I feel we've been treated reasonable so far.

[tokolosh01]

Insurance rises were going to go up and the earthquakes just made their job easier. I know a lot are bashing the Insurers but you have to realise that it is not them it is the Reinsurers that have moved on increasing the premiums. The insurers have no say in the premiums being charged. Insurers are going to probably stop providing earthquake cover in those areas where there are prone to earthquakes.

[tokolosh01]

This is wrong you can either opt for having or not having an alrm pm me if you want more details.

[muppet]

Premium hikes hit all cities

Premium hikes hit all cities

By Lawrence Watt
5:30 AM Sunday Oct 2, 2011
The collapse of two cathedrals in Christchurch, including the Catholic Basilica, has put pressure on insurers. Photo / Dean Purcell

Insurance premiums on houses will soon increase by nearly 1 times as a result of the Christchurch earthquakes.

In fact, insurance brokers say house policies have already increased by 25 to 30 per cent this year, even in cities like Auckland which are not earthquake-prone.
Insurers Vero and Lumley - which have increased their prices - confirmed the hikes. Vero chief executive Gary Dransfield said the increases began soon after the first Christchurch quake, rather than in one hit.

But future increases - probably after the election - in the Earthquake Commission levy could raise the total hike to close to 1 times the insurance premiums of just a year ago.
The EQC disaster fund is now in "a state of negative equity" - its liabilities are greater than the value in its funds. Government ministers are now considering a report on its future.
Prime Minister John Key has told Radio New Zealand that the annual levy is about $60 for the average household. This could increase to between $120 and $180 "fairly quickly".
Assuming the upper estimates are accurate, adding all the increases together gives a total increase of about 150 per cent since the first quake.

So why have Auckland insurance prices increased as well as those of earthquake-prone cities - Christchurch, Napier and Wellington?
Dransfield says it is necessary to share the post-quake risk around the country to a degree, although people in shaky cities pay the highest premiums. There is also some volcanic-eruption coverage in Auckland.

But it is also getting harder to get insurance cover on pre-1935 inner-city buildings in central Auckland, says a broker who has asked not to be named. "You ring up seven companies and five will decline you," he says.

More at

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10755906

[One]

Got another renewal notice from AMI for a house in Hoon Hay, Christchurch. It's gone up from $500 to $615. Surprisingly little, phew!

[Perry]

Fun, Fun, Fun

PropertyTalk Thread link

EQC Levy To Triple As Govt Posts $18.4b Deficit

[eri]

the insurance industry are a long term bunch

if they need to raise premiums 50%

they'll do

but they'll do it 10% a year over 5 years

not in 1 hit

no one wins if people skip insurance

and then blow the money saved on fags, booze and lcd tvs

[tokolosh01]

Hi
My two pence worth State has been copping some flack recently. It is due to their staff being otherwise unprofessional. If you have a burglary claim and you have mentioned that you do have an alarm and it is not set - no claim. What tower or any other do not say is exactly that. this is the big difference between what we do and what Insurers do, Insurers do not have to ask as they are direct Insurers and you should know. whereas we mention/advise to clients what does and will happen if an event tlike this occurrs.

[tokolosh01]

I agree here here