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Premiums – House and Contents Insurance NZ

House and contents insurance NZ policies have witnessed a rise in premiums recently. The insurance premium you pay for house and contents is determined by the type and amount of cover you have chosen. Unless you have made substantial changes, such as remodeling or an addition to your home, or acquired an item of substantial value, your premium should either remain about the same year after year, or increase gradually due to inflation.

Recently there has been a spike in the cost of house and contents insurance NZ premiums. This rise in premiums isn’t due to a sudden desire on the part of insurance companies to increase their profit margins. The increase in premiums is the direct result of the two major earthquakes Christchurch experienced. The second earthquake was especially devastating, costing tens of billions of dollars in damage.

These two events placed great pressure on insurance companies, as they were suddenly faced with having to pay out a very large number of claims in a short time. To stay in business necessitated an increase in premiums, meaning we all will share some of the burden caused by these two disasters.

When you take out an insurance policy you generally assume that the premium you pay will not vary greatly from year to year. This assumption is usually correct, but there are always things beyond our control. We cannot predict if or when another natural catastrophe will strike. We can however help you purchase a house and contents insurance policy that suits your needs and budget. Click on our “Get a Quote” button to get started. Quotes are free and there is no obligation. Even if Mother Nature doesn’t cooperate, you can be covered against disaster.