New Zealanders called to prioritise insurance when buying homes

New Zealanders called to prioritise insurance when buying homes | Insurance Business New Zealand

Property

New Zealanders called to prioritise insurance when buying homes

Advice offered amid surging premiums and climate risks

Property

By
Roxanne Libatique

The Insurance Brokers Association of New Zealand (IBANZ) is advising prospective home buyers to prioritise insurance considerations in their decision-making process when looking to purchase property.

Recent actuarial findings shared with the Treasury revealed a notable rise in home insurance premiums, with increases surpassing 30% in various parts of New Zealand. This uptick is largely due to increased awareness and concern over climate-related natural disasters, leading to some insurers restricting the availability of online quotes in certain regions.

IBANZ noted a surge in the demand for its brokers, as more clients face challenges in navigating the insurance market on their own.

IBANZ offers tips for home buyers

IBANZ CEO Mel Gorham pointed out the difficulties homeowners may encounter when trying to secure insurance for a new home.

“Homeowners may now find it more difficult to arrange house cover in order to settle on a newly purchased property, even if it wasn’t affected by last year’s weather events, as insurers are now more sensitive to possible natural hazard risks,” she said. “Insurance brokers can often help homeowners in these circumstances as they have good local knowledge, expert understanding of the insurance market, and access to policy options that individual homeowners can’t purchase directly.”

Additionally, Gorham advised first-time buyers to consider all aspects of a property, beyond its immediate appeal, to ensure it represents a prudent investment.

“Remember, if you need a mortgage, then your lender will want to see evidence that there is insurance cover in place before advancing the funds,” she said. “It’s easy for first-home buyers in particular to be wowed by views, school zones, or that dream kitchen, but IBANZ urges buyers to stay grounded in reality and make sure the property is really a sound investment before signing up.”