Around two thirds of Kiwis think they have enough home and contents insurance and 60% don't review their cover every year, according to the latest survey by Canstar Blue, a customer satisfaction research and ratings business.
The survey also revealed that 78% of people renewed their insurance with the same provider and less than half of people understood their policy documents and what is covered.
Commenting on the insights, Canstar Blue General Manager Jose George said: "Our homes and what we have in them are usually our most valuable possessions and it’s worrying to see that so many people may not be taking steps to ensure they are adequately insured. It’s good to see a high degree of confidence but it's worrying that for many people, it looks to be without foundation."
According to the Insurance Council of New Zealand, home and contents insurance is one of the biggest insurance markets in New Zealand and latest figures show that in 2016, customers paid a total of NZ$1.56 billion (US$1.12 billion) in premiums.
Mr George added: "The changes that have taken place across the New Zealand insurance market in the last few years mean it is a very different landscape to what some people were used to. The introduction of sum insured, general increases in premiums and the forthcoming increases to EQC levies mean that some people may need to re-educate themselves.”
Canstar Blue also asked people who had recently made a claim, what they liked most about the experience and their insurer. In order of importance, the following qualities are what were valued most:
- Quality of service
- Speed of response
- Value for money
- Ease of claim.