AMI and State Insurance premiums take greater account of risks such as earthquakes and floods
July 23, 2018
AMI and State policyholders with home insurance may notice some changes as premiums take greater account of risks, such as earthquakes and floods.
Customers in areas at higher risk of natural hazards, such as earthquake, flood and landslip, are expected to see average increases in their total premiums of $91.
Those areas include parts of Whakatāne District, Hawke’s Bay, Wairarapa, Greater Wellington, Marlborough, the West Coast, Kaikōura, Waimakariri District and Dunedin.
Customers in other parts of the country are expected to see average decreases in their premiums of $54.
Those areas include parts of the upper North Island, Taranaki, Selwyn District, North and Central Otago and Southland.
AMI and State policyholders will be contacted from today (July 23) with details of the changes in their premiums, which include changes relating to differences in risk, along with changes reflecting IAG's normal approach to reflecting changes in inflation and costs.
Kevin Hughes is Executive General Manager Consumer at IAG, the company behind AMI and State.
“We know New Zealand has many natural hazards, including earthquakes and floods, with different risks in different regions. In the past, the price people pay for home insurance hasn’t fully reflected these differences in risk. This is now changing.
“Over the past few years, we’ve seen how New Zealand’s environmental risks have evolved, and we’re taking these risks more into account. While we can’t ignore these changes, we can continue to be there for our customers when misfortune strikes. This means our prices must change.
“Generally, a home in a location that is a high-risk area for earthquakes or floods will cost more to insure than a like-for-like home in a lower-risk location.
“We know that, for some of our customers, this will be a challenge and we’re committed to working with them through this.
“We will continue to provide solutions and work to make insurance as affordable as possible for them.”