Your home insurance is changing. Again?

Much to my mates dismay, I like talking about insurance! It’s why I am an insurance broker. And with all the changes to Home Insurance in the last couple of years I've had the chance to talk about insurance like never before.

For the benefit of my clients, NZ insurance buyers and my mates I want to talk about it again.
 

The not so historic history

July 2013 - Insurance landscape in NZ had the most significant change for 30 years

All insurance companies stopped insuring houses on the basis of 'Full Replacement Cover'. This had been the favoured and trusted method of insuring for both insurance companies and home owners for over 30 years.

In July 2013, insurance companies went back to 'Sum Insured Replacement'. This meant the home owner had to insure their home for a fixed amount. If you currently have your home insured this is how your home will currently be covered.

The insurance companies stood in front of brokers (literally!) and the NZ public and told us this was the way of the future.  But being a sceptic I always thought there would be more changes.
 

Fast forward to Feb 2015

Fast forward to February 2015 and the home insurance landscape has changed.  And with it are options and choices for insurance buyers:

...One insurance company is now offering Area Replacement, similar to Full Replacement Cover, for non-natural disasters.

...Another insurance company is only offering standard sum insured replacement.

...And now a third insurer is offering Full Replacement Cover for non-natural disaster claims, but only if you have had your home valued.
 

Uncomplicating the options

Home insurance is not the set and forget policy it used to be. Each option has its benefits and drawbacks and at times it can be hard to know which one has the right benefits for you.

As I keep telling my mates, it’s so important for you as a home owner to understand what policy you are buying, how the insurer will cover you at claim time and if this is what you want from your  policy.

I urge you to think about what you want to protect, and what you want at claim time before choosing the right policy for you.

 

 

By Stu Cooper, previously National Domestic Manager @stu_cooper


Rothbury

About the Author

Name: Rothbury        

Like many of our business insurance clients we're a majority NZ owned company that was started by enterprising Kiwis in 1950. Today, New Zealand is a different place to when we first started. As a consequence, the way…
Read More

Like many of our business insurance clients we're a majority NZ owned company that was started by enterprising Kiwis in 1950. Today, New Zealand is a different place to when we first started. As a consequence, the way we respond to your business and personal protection needs has evolved and matured.

While our core business is still related to creating the best insurance solutions for you, our motivation and passion now lie in being unconditional advocates for our diverse range of clients. In other words people like you.

Close

Disclaimer: The articles published on this blog are designed to provide general information and do not take into account any individual’s particular circumstances. We recommend that you obtain professional advice on your requirements before making any decision about a financial product.

Submit A Comment





 


Feedback & Comments

No one has posted yet! You could be the first!

© Copyright Rothbury Insurance Brokers 2017 | PRIVACY POLICY | TERMS & CONDITIONS | STAFF LOGIN |Site Design & Build By Exceed