Building insurance embargo

[propertybuyingNZ]

Hi All,

It might be expected but there is apparently a building insurance embargo on new applications, especially in the eq hit areas.

Will be interesting to see how the tenders and auctions perform this week.

Cheers
Peter

[Davo36]

Oh, interesting about the insurance thing.

And yes, wonder if people will feel bearish.

Good post.

[Nick G]

Hopefully it doesn't take long to come back.

[propertybuyingNZ]

Agents insist building insurance in tenders. Imagine if you had a mill cash. Now you could make some offers

[MargVan]

Hi All,

It might be expected but there is apparently a building insurance embargo on new applications, especially in the eq hit areas.

Peter

Any reference for this please Peter? We're about to bid on a property in Kapiti Coast and will need insurance.

[Nick G]

Contact Chris Lane - [email protected], he's an insurance broker and will be able to help you.

[MargVan]

Our broker has confirmed both NZI and Vero will not insure in the affected areas. Vero is even more restrictive than NZI. Other insurers are expected to follow quickly.

[propertybuyingNZ]

Our broker has confirmed both NZI and Vero will not insure in the affected areas. Vero is even more restrictive than NZI. Other insurers are expected to follow quickly.

yep, we might be using the same broker

also Tommys insists insurance clause to be in every tender documents, I guess they want to give some assurance to buyers and also to level out the competition.
really curious of the clearance rate of the properties i am interested in. I for a fact will not bid or tender, better wait and see what does not sell and move in then.

[Davo36]

What is the 'insurance clause' you are talking about?

[Wellington Broker]

What is the 'insurance clause' you are talking about?

Not sure about Tommy's, but have seen others with a 7 day clause for the purchaser to confirm insurance

[Don't believe the Hype]

Harcourts have also included an insurance clause as standard in there Auction contracts to try to stop things grinding to a halt

[propertybuyingNZ]

Any reference for this please Peter? We're about to bid on a property in Kapiti Coast and will need insurance.

yep, same as what Nick and Hype confirmed.

mind you, was watching Lowe and Co new statistics, seems market is really cooling off in Welly, listings dropped (no surprise) but clearance rates dropped too, what is a surprise.
either confidence level gone down, or all the props on the market are duds.
these are October statistics

[pooky]

There was a good Q&A with the head of the Insurance council on radio NZ this morning. They probably have it saved on the website somewhere. The essence of it seemed to be that if the house purchaser took over the existing insurance policy from the selling home owner, you'd be covered. But they wouldn't insure for more than the current sum assured amount. Seemed a bit PR speaky on the 'Will you cover new houses' policies. Fell into a "we'll find a solution for any insurance matter people want". Hmmmm.

As for Welly market cooling off...don't think so. The neighbours house ( a nice 4 bed, timber house) in the Western Hills was listed on the thursday, had the open home on Sunday with 40 families queueing up the drive to go through it. That was a shock. The quake struck (a different shock) that night (no damage to any house in the street)...but was sold by wednesday. 6 day turn around form list to sold. Lack of listings is powering things around here.

[PTWhatAGreatForum]

This area is not affected but further south is.

Oh well, one more thing to add to the mix.

I will see if I can use it to my advantage when making an offer.

[Nick G]

If it's still quiet in Feb I'll believe it. There's always a lull when RBNZ does something and LVR rules just kicked finally on Oct 1.

yep, same as what Nick and Hype confirmed.

mind you, was watching Lowe and Co new statistics, seems market is really cooling off in Welly, listings dropped (no surprise) but clearance rates dropped too, what is a surprise.
either confidence level gone down, or all the props on the market are duds.
these are October statistics