Post quake insurance – what does this mean for me?

After the most recent earthquakes on 16 August 2013 insurance providers have severely limited the availability of new insurance policies until further notice.

The temporary restrictions are on all and any new policies in the Lower North Island and Upper South Island regions for both house and contents and also for any increases to a “sum insured” value.

If you are looking to purchase a property a solution to this may be to obtain the Vendor’s current policy details and look to take over the Vendor’s current insurer.  Please note however that this is taken on a case by case basis and is by no means guaranteed.

If the current provider agrees to insure the property this is likely to require a builder’s report to certify that there has been no quake damage and/or a damage report to be completed by the Vendor undertaking that there has been no damage to the buildings.  If you are looking to put an offer on a property to purchase we highly recommend you contact us for advice prior to submitting this.  At the very least you should have a condition inserted in the Agreement for you to obtain satisfactory insurance on the property and for the Vendor to provide current insurance documentation to you.  Any mortgage you require will be conditional upon you having insurance (satisfactory to the bank) in place.  This also applies if you have pre-approval.

If your policy is due for an annual renewal your insurance provider will renew the current policy you have in place.  You may however be required to change from “full replacement” to a sum insured value. Read more about the important changes to the way your home is insured.

If you are undertaking renovations and your current policy is based on a sum insured value rather than full replacement you would generally look to increase your sum insured value.  At this stage however most insurance companies have a blanket rule that they won’t increase any sum insured value until further notice.  If you are looking to undertake substantial renovations you should factor this in and seek information from your provider prior to undertaking your renovations.

If you have any questions or queries relating to insurance please contact us on (04) 473 6850.