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  1. #1

    Default Massive insurance premium hike this year

    So I just got my insurance renewal document for 2019. I'm quite shocked. Last year (2018 policy) my insurer charged me $130 per property for a meth levy. This has now been abolished (super, I'm thinking possible reduction in insurance costs). All the components of the new premiums are exactly the same as last year, minus $130 per property. I was expecting a possible reduction in fees, or at least not too much of an increase. These are the figures:

    - last years premiums = $24k (with meth levy)
    - last years premiums minus the meth levy (so I can accurately see the price differences b/w the consistent/valid/remaining components from last years premiums and next years premiums) = $20.6k

    - next year's proposed premiums (no meth levy) = $30.2k

    So with all the remaining components between 2018 and what is proposed for 2019, that's a $9.6k increase from last year........... 46.6% increase! And they tell me they've obtained a 10% discount because of the size of my portfolio!

    Just wondering if this in line with what others here are seeing with their own insurer?

    Also wanting some recommendations about other places to try. I just want to look around. If my existing insurer is still the best value, so be it. But previously I was happy enough to just stay with them without looking around every year. This year I want to see what some others can offer before I decide.

  2. #2

    Default

    what part of the country are your properties in?

  3. #3
    Join Date
    Oct 2015
    Location
    Rotorua
    Posts
    421

    Default

    damn it's massive increase

  4. #4
    Join Date
    May 2008
    Posts
    3,402

    Default

    I've only had a 20% increase so far this year.

  5. #5
    Join Date
    Nov 2007
    Location
    north shore
    Posts
    359

    Default

    We are with Chris Lane from First Lane Insurance, 027 457 9004, found him to be great, competitive rates and handled our claim well.

  6. #6

    Default

    Thanks for the replies. The houses are in various towns: HB, Dunedin, Wanganui. By the sounds of it, my increase is abnormal. Even 20% is a fair hike I reckon, but 47%!

    Thanks for the suggestion North Shore. I'm going to ring around today.

  7. #7

    Default

    We’re meeting with our broker today to go through our renewals today. Mainly Wellington based, Will report back on increases.

  8. #8

    Default

    Another insurance related question- I'm rechecking my sum insured estimates via Cordell and need-to-know. I haven't done this for a few years because I was just adopting the insurers annual suggested inflation measure.

    Anyway, via these SI estimators, I'm being reminded of my impressions about them a few years back- namely, that they ask for the details of the current house and then apply the SI (which can be really high for an old villa), whereas if it burns down and needs to be rebuilt, I would obviously get a modern house built (which turns out to be a much cheaper SI estimate). For example:

    A double storey, double brick 1890s villa in Dunedin.
    If I put in the current details of the house, the SI = $700k (more than the house is currently valued at, so I can't imagine it costing that much to rebuild)
    If I put in a 2018 double storey house, contemporary design (not villa but not architect), artificial weatherboard/plank cladding (basically what would get rebuilt) = $394k

    I know that I can set whatever SI that I want, so I feel that $394k is the correct one, but am I missing something here? Why would these calculators estimate rebuilding a 1890s double brick villa when it's probably highly not up to current building practices or regulations?

    Are other people also putting in "rebuild 2018 contemporary house" specs to estimate the valid present-day costs of rebuilding a house of the same floorsize?

  9. #9

    Default

    And another example:
    1905 weatherboard villa in Dunedin, 4bdm, 134m = $530k sum insured estimate
    1970+ standard build artificial plank/weatherboard in Dunedin, 4bdm, 134m (basically what would get rebuilt)= $310k SI estimate.

    I'm basically thinking the lower values are the rebuild (SI estimates) that I should use. Is this correct?

  10. #10

    Default

    Quote Originally Posted by deechnz View Post
    I'm basically thinking the lower values are the rebuild (SI estimates) that I should use. Is this correct?
    The insurance sum also needs to cover the demolition, removal and readying the plot after the event. Site access and location need to be considered as well.


 

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