News eDaily16 May 2017

New Zealand:Higher building costs leads 85% of homeowners at risk

16 May 2017

Rapidly rising building costs are leaving 85% of New Zealand homeowners underinsured, says an industry expert, Ms Jo Mason, Chief Eexecutive of insurance firm NZ Brokers.

She says that rising costs and changes to policy wording mean homeowners are uninsured by an average of 28%, reports NZ Herald.

"In the past six months we have had several devastating flood, fire, seismic and adverse weather incidents around the country," she said.

"It is crucial that homeowners are aware of what it would cost to rebuild their house from scratch and review this regularly," she said.

Ms Mason said that with building prices rising across the country by up to 17%, it's urgent for homeowners to check they are fully insured for their property, not just a portion of it.

She also says that changes to sum-insured insurance properties could affect homeowners.

"Sum insured policies limit the maximum amount your insurer will pay in the event your home is totally destroyed," she said.

"In an environment where building costs are rising at around 7-17% each year, there is no guarantee that the amount you are insured for will be enough to cover the cost of a total rebuild."


 

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