Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Insurance Crisis Looming Warns Property Institute

Insurance Crisis Looming Warns Property Institute


Changes to home insurance mean New Zealand is setting itself up for disaster, warned Property Institute Chief Executive David Clark.

"If there is one thing we all learned from the experience of the Christchurch earthquakes, it's the importance of making sure that we are all adequately insured in the event of disaster"

"The country's failure to adapt to changes in home insurance mean that we will be set up for a disaster in the event of another crisis"

Most house insurance policies previously provided for full replacement regardless of value, however changes in the industry are now putting the onus on the homeowner to specify a maximum amount insured.

"The vast majority of homeowners are simply accepting a default value provided to them, or using online calculators which don't take a wide array of variables into account. Compared to the professional assessment of a Registered Valuer, these methods tend to result in significant underinsurance" said Mr. Clark.

"Worse, some homeowners who make the responsible decision of having a professional visit their property to calculate a rebuild cost are being ripped off by people completely unqualified to do this work"

While Registered Valuers are strictly regulated in New Zealand, there is no regulation preventing people who are not qualified from providing insurance valuations.

"It's absolutely vital that people understand the risks involved in using a value that hasn't been calculated by a professional, and the Government needs to understand the risks that the country is running if we continue to allow widespread inaccurate insurance of the country's major asset base"

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news