A recent survey conducted by Consumer NZ revealed that there is a growing concern among homeowners regarding the rising costs of house insurance. The survey unveiled that over two-thirds of the participants are feeling the pinch and even 8% have decided to not renew their policies because it fell out of their budget and affordability.
Consumer NZ’s investigative team leader, Rebecca Styles, urges Kiwis to assess their current insurance policy and their coverage, and encourages homeowners to compare.
By comparing, you are more likely to find a better deal and still have some level of coverage. You don’t want to have no coverage at all!
What is Influencing These Price Increases?
Consumer NZ has noted that in the past 10 years, house insurance has gone up by 97% and contents insurance has increased by 48% in New Zealand. Wellington appears to have been the hardest region hit by rising premiums, with an increase of 29% and Auckland follows closely behind with a raise of 26%.
There are several key factors that are contributing to the rise in premiums.
- The increasing cost of reinsurance
- Severe weather events
- Individual properties being priced based on risk
As more severe weather events occur and impact communities around Aotearoa, we will continue to see a surge in claims and thus, the cost of insuring properties will keep increasing.
How to Combat Rising Premiums
All is not lost. There are several things homeowners can do to ensure they are keeping their properties ensured, while not squeezing their budgets.
Compare Policies
Take advantage of Money Compare to compare different house insurance policies on the market. Knowledge is power, and by taking the time to assess the information, you can make an informed choice and find a better deal that still delivers the appropriate coverage for your needs. Consumer NZ noted that Kiwis are reluctant to switch insurance providers due to the time and effort it often takes to shop around. This is why Money Compare exists. Our website is designed to make comparison easy and quick, and provides all the information in one place. Don’t fall victim to loyalty tax, especially while costs rise. Compare with Money Compare to find a better deal in minutes and save money in the long term!
Choose a Higher Excess
An excess of the amount of money you will pay in the event you need to make a claim on your house insurance policy. This payment will mean your insurance provider can process your claim. If you choose to have a higher excess when purchasing your insurance policy, your premium will decrease. Just be sure that you can afford to pay that higher excess fee if something were to happen to your property.
Regularly Assess your Needs
How much coverage do you need? Can you get by with a basic house insurance policy such as a fire-only or a fire and burglary policy? While it may not cover you for all manner of disaster and damage, it can still provide some coverage and keep your insurance costs to a minimum.
Explore Discounts
Many insurance providers will offer discounts and bundles for those who choose to combine house and contents insurance. Providers may also offer discounts for homeowners who install security systems such as house alarms and to those who can afford to pay their premium annually.
Further Reading:
Top 3 Reasons Why House Insurance is Important
Compare All Your Insurances
The Types of Car Insurance in NZ
Do I Need Life Insurance in NZ?
Is Health Insurance Worth It in NZ?
