The cost of house and contents insurance in New Zealand has increased significantly over the past year, according to a recent price survey from non-profit advocacy group Consumer NZ.
The survey found that the cost of house and contents insurance rose by 5.6% on average in the 12 months to September.
According to Consumer NZ, the price hikes can partly be attributed to the rising value of housing. However, the biggest factor is the shift by insurers to full risk-based pricing for natural disasters.
“This means if you live somewhere with a higher chance of earthquakes – such as Wellington or Christchurch – you’ll be charged more for insurance,” Consumer NZ said in a statement. “Insurers are also now factoring climate risks, such as flooding and coastal erosion, into their calculations for premiums.”
Gamma Rasmussen, head of communications and campaigns at Consumer NZ, said that Wellington and Christchurch faced the biggest price hikes in the past year.
“Wellington median prices increased 16% for our standard house and 18% for our large dwelling,” Rasmussen said. “In Christchurch, median prices increased 8.5% for our standard house and 17% for our large house.”
“Home and content insurance premiums are more expensive than ever before and are likely to continue to rise,” Rasmussen said. “We’d recommend New Zealanders don’t ‘set and forget’ because there are large savings to be made if you shop around.”
