Insurance Blog
Premium increases coming for house and contents insurance, fair or not?
23 January 2012 9:12amFrom now, when you open up your house or contents renewal notice you should expect a shock, a big one in the form of average premium increases of 30%. Some insurers will be a little less and soon even higher.
Even though it might not feel like it if you live outside Christchurch and have never claimed, most of will understand that the claims made on insurers is like nothing else experienced before. The insurers have paid out millions and millions of dollars in claims and the Earthquake Commission fund is empty and has to be rebuild for everyone's sake.
The insurer will increase the premium to cover their own losses and it is important to remember they also just act as collecting agent for the government in respect of earthquake levies so that impacts on the total premium too.
Sad to say, but we need to be realistic about these increases. But if they become hard to afford shop around and consider taking a $1000 excess, especially for house insurance claims.