New house insurance in Christchurch

[AlanaChch]

Does anyone have any information or heard anything about when the Insurers will start to insure properties in Christchurch again?

[Wiz]

I've not heard anything but something must be happening with all the recent sales going on. Are you looking to change from the current property insurer? It seems that this is the area where things get tricky.

What's the go with you?

[Orkibi]

If you want to build a NEW HOUSE in the green zone with TC 1 AND 2 there is possibility that the building company can provide cover.
some offer insurance at time of build and further 2 years.

I also talked to NZI via my insurance broker and been advise that provided they cover from the build onwards they MAY provide cover.

Geo-tech Report will be required anyway and it takes about 2-4 month to have one done and cost anything from 2k-10k depend on the drilling required etc.

[AlanaChch]

Thanks Orkibi for the update on new houses' insurance.
I was looking at buying an existing property but with no current insurance policy in place. The house is in good location and would be a good investment property but the bank won't land money without the full replacement cover which i totally understand. So i was wondering when the re-insurance is going to start in Chch. It is probably unlikely to happen soon i might have to let this one go.
Or another option is to buy an existing house and relocate to a piece of land. Would it be possible to insure then?

[Orkibi]

Answering your first question - noone knows - talk to a good broker who maybe able to close a deal for you if the house is in the green zone and you can provide tech reports etc etc.
(not worth pursuing - find another deal - whats so special about this house anyway???)

Or another option is to buy an existing house and relocate to a piece of land. Would it be possible to insure then?

Yes it maybe possible BUT depending on the location you are relocating to. it is more liklly that you will get insurance cover if the section is out of Chch in new subdivision or Timaru for example.

BUT make sure if you are looking on one of the new subdivision that there are NO Covenants on the section prohibiting you from putting a relocatable house on them.

I hope that helps.

[AlanaChch]

Hi Orkibi

i've talked to a broker and he said the insurance cover is one of the main requirements from the bank, so we could't get around this one. the special thing about that property is that it's in good location with good bones and heaps of potential, and the owners just want to get rid of it as they are overseas. Anyway, i will give this one a miss!
In regards to relocating a house to a section, you are right, out of Christchurch would be the best way to go.
Thanks for your advice

[Meehole]

Currently in ChCh a new house build that is a rebuild has cover from the existing insurance company. If you just want to build a new house check with the housing company as most of them are now offering contract works insurance then the insurance company is extending the insurance out for another 2 years.
If you build in a recently developed sub division the developers are providing a geotech report (usually for free). I think Pegasus just out of Christchurch might even be able to offer insurance no matter who builds the house, but I would check that to make sure I have that right.
Most owners of existing houses are able to transfer the insurance, ie the insurance remains with that property.
It is not a good time to try and do up a house down here for a rental. Section prices and existing properties have increased in value and a house valued say at $348,000 sold the other day for $370,000.
It is pathetic that new insurance is so hard to get, how are the people of ChCh expected to move on? It is yet just another way to hamstring people, no wonder they are taking their money and moving away.

[ScottSI]

After long discussions with our bank they will loan 70% of land value on an uninsured dwelling that is on TC2, but only 60% on TC3 and it would be case by case analysis for each deal. The catch came in that we could rent the dwelling and make great 20% + gross returns (after repairs) but they would not use any of the income in their cashflow calculations. The main risk is sitting there with an uninsured house waiting till insurance comes back online which could still be at least 12 months off if not more. Hope this is some help.

[Meehole]

FMG Insurance are currently advertising NEW insurance, but also on a job by job basis. It would seem that in the case of a new build on good land (new subdivision in the case I enquired about) they will insure after construction.

[Davo36]

Are you building a new house Meehole? And if so, for investment or to live in?

[Meehole]

Looking at it, at this stage to live in but a basic build will try not to get too carried away with the bells and whistles.......

[Davo36]

Hmmm, are there opportunities to build and flick on in Christchurch at the moment? I mean there's a shortage of houses, so a new one on good land, that can be insured etc. must have some appeal?

Maybe, if you wanted to, you could build one, sell it, build another etc. Might be some good money in it, as long as you don't mind moving a few times??

[Orkibi]

I have one on the Market Davo, Green Zone were you can build up to 4 Town Houses.

Get back to me if interested. (my own property). Finance still an issue for some.

[Meehole]

Hmmm, are there opportunities to build and flick on in Christchurch at the moment? I mean there's a shortage of houses, so a new one on good land, that can be insured etc. must have some appeal?

Maybe, if you wanted to, you could build one, sell it, build another etc. Might be some good money in it, as long as you don't mind moving a few times??

There's definitely a bubble down here and a shortage of new homes built on land that can get insurance.