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

 

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news