The financial shocks of the Canterbury earthquakes are being felt by homeowners throughout New Zealand this month, with the arrival of insurance bills in the post showing average increases of up to 30 per cent.
Insurers battered by earthquake claims and multiplying fees from overseas reinsurers say they are balancingballooning costs against keeping prices manageable.
But the latest insurance renewals, for terms beginning on or after February 1, also include rises of $120 plus GST a year to be collected for the Earthquake Commission.
Associations of property owners say there are shocks awaiting in letterboxes, while some in the industry say the pricing of insurance has become a matter of trying to keep premiums affordable.
The NZ Herald surveyed the major insurers and owners of 30 properties around the country and found snowballing increases in house insurance bills, though there were significant variations and the rises were less substantial when considered on a weekly basis.
Canterbury Property Investors Association president Kim Willems said the costs could be devastating for property owners.
"It's going to be quite a shock for people seeing those renewals."
Waikato Property Investors Association president Nancy Caiger said the big increases began late last year and had been compounded by the extra EQC levies showing up this month. "The earlier ones weren't so bad, but as they're coming in they've been getting higher and higher."
The new EQC levy applies to all insurance contracts that start next month or later.
The part of the levy that applies to housing insurance has gone up from $50 to $150, excluding GST, and for contents from $10 to $30.
Home Owners & Buyers Association president John Gray said that some homeowners had been forgoing insurance for the sake of putting food on the table and paying their mortgages instead.
