To say it has been a turbulent past few years is certainly an understatement. There have been a number of natural disasters worldwide. In our own region, Christchurch was devastated by the earthquakes, Japan had an earthquake and tsunami, and there was flooding in Thailand as well as in Australia.
So the question we should all be asking ourselves on a regular basis is - do I have sufficient cover onmy homes or commercial/industrial buildings to ensure they can be replaced in the event of a total loss?
Youmay answer yes to that question, but the Christchurch earthquakes demonstrated that many people were under-insured, and many continue to be, across New Zealand.
For the majority of us, our homes are our single largest asset - it's important then to make sure we fully protect them but the insurance industry is changing. Most of us get a policy and never think about it again unless something happens. So, why should you worry about it now?
International reinsurance companies (the companies used by insurance providers to reduce some of their claims risk) have increased the price to local insurers to recoup losses and reduce risk. In turn, local insurers are passing these increased costs on to the consumer through higher premiums and the type of cover offered. Some apartment owners have seen a sharp rise in their premiums and insurers are requiring increased deductibles and applying additional policy restrictions.
