HOW WE CAN HELP WITH THE RECENT INSURANCE CHANGES IN NEW ZEALAND

There are a number of articles:-

  • Showing that the impact of climate change-related issues will impact insurance costs and the public will pay the price by going to risk-based pricing. This means that those people in earthquake or flooding prone areas are receiving increases in their insurance premiums.  Melissa Heath, former insurance manager advised she knows of premium increases of $5000, $12000 & 15,000 per annum.
  • Rising insurance premiums are pushing up the rental costs for businesses, which are putting businesses at risk.  Businesses had already seen a rise after the Canterbury and Kaikoura earthquakes and will now rise yet again with risk-based pricing.

We know the perceived negatives of all the above, what we want to talk about is how we can help you mitigate your risk, whether a business or a homeowner.

Mitigate Insurance Risk for Business Owners:

Business Interruption is one of the most misunderstood but most important covers to any business. Without it businesses face significant financial loss in the event of property loss or prevention of access issues.

You also never know when a disaster will strike that can effectively put you out of business.  With the right business interruption cover you can be back on your feet trading as soon as possible, giving your business a competitive edge over those not insured.

It is easy to forget than income cannot be produced, without an operating business or the business owner believes that property insurance will cover all losses.

Property insurance only covers physical loss or damage to the location and contents of the business – it does not cover loss of income or continual fixed cost whilst location is being repaired.

Fixed costs e.g. rent, electricity and staff wages which need to be paid can be covered by the right business interruption policy and some also cover the extra expenses of moving to a temporary location, if required.

It is essential that you get the right advice to ensure that cover is tailored to suit your requirements. We can help you decide exactly what policy will be of most benefit for your business and how much business insurance cover you will need to protect your business.

Mitigate Insurance Risk for Home Owners:

The Insurance Council of New Zealand has warned that our country is one of the most vulnerable to the impact of natural disasters for an economy of our size.

Insurance Premiums have jumped since the 2010 and 2011 earthquakes in Canterbury which insurers and the EQC have paid out $32 billion to date.

Cities designated so far as “high risk” are Auckland, Christchurch, Dunedin, Hawkes Bay, Some other Rural Areas, Seaside Residences and Wellington.

Karen Stevens, Insurance & Financial Services Ombudsman has stated “homeowners now need to think carefully about the risks associated with where they live, where they buy and where they build. We already know that they moved the risk of underestimating the costs to rebuild homes from insurer and their reinsurers to the homeowners.  Understanding what it might cost to rebuild your home, after a natural disaster is an expert job being asked to be handled by non-expert householders?”

This is where we can help you.  We can work with you to decide how much insurance you need and what the best policy is for your needs.  If you have received notice of a large price hike in your premiums then you can also talk to us about reviewing your options.

Now that we’ve met, why don’t you give us a call+64 4 586 2728