News from Paradise Brokers!
I would like to draw your attention to our recent staffing changes here at Paradise Brokers.
Whilst Mariana has retained an association with us at Paradise Brokers, her concentration is essentially now in the life and financial sectors.
It is with great pleasure that we welcome to our team Carla Glasgow to assume many of her duties.Carla has gained her experience working for both a large Insurer, two different broking offices in Christchurch, and latterly an assessor’s office in Nelson. She has a Diploma of General Insurance and is a Senior Associate of The Australian and New Zealand Institute of Insurance and Finance (ANZIIF). In her free time, free time she is an avid baker, and loves crafting, gardening and anything hands-on. She also enjoys aqua fitness and has a keen interest in motorsport.
Carla is looking forward to assisting you all, and I am sure you will all extend a warm welcome to her.
And now, for the current overview of the house insurance state in New Zealand.
The good news: 93% of people with house insurance realize that it's changed.
The bad news: 64% aren't doing anything to update it!
Replacement Value Sum Insured cover is very different to how your insurance previously covered a house in a claim. The policyholder sets the max amount the Insurer will be willing to pay in an event to replace the house or correct any damage. This may not seem like a big deal, however, there used to be peace of mind that the house would be built back exactly as it was. Now it's capped at the dollar value you set your insurance to be at. Even if that's not enough to build half the house back.
Insurers have decided it’s now the homeowners job to set the correct amount and find out what it would cost to rebuild. The problem with this is of course is, how can we be expected to know this? As homeowners we’re not valuers or experts, and we do not have knowledge of rebuild costs, fees, permits etc. or all the expenses involved in rebuilding a house.
It’s for this reason that many have ‘frozen’/done nothing and set their replacement value at the default figure which the Insurer gives. The Insurers know very little about your homes, and with not much to go on, the figures are incorrect...with a huge two thirds of homes being underinsured. When you start factoring in homes with pools, tennis courts and other high value features like really large patios and fountains - the default sum insured is even more likely to be way off. It's no surprise then such a large portion are wrongly insured.
I am confident we have spoken to all of our customers and are working together to have an understanding of what your cover actually insures. However, if you feel you unsure, would like to ask more, or you know someone who is unsure about any of the changes within house insurance, sum insured or otherwise - please get in touch. The advice is free!
You can reach us on 03 548 2211 027 548 2211 or 021 548 243 (Carla).
If you would like to get a headstart and find out an idea of your Home Rebuild Cost, please click the link below. You'll need the tape measure handy!