Insurance & Savings Ombudsman: House and Contents Insurance

Insurance & Savings Ombudsman Scheme Warns of Changes to House and Contents Insurance

Karen Stevens, Insurance & Savings Ombudsman, announced the ISO Scheme’s publication of a new consumer newsletter - Consumer Focus.

The first issue of Consumer Focus addresses the changes to premiums, excesses and sum insured for house and contents insurance. Ms Stevens warns that “This is important information for everyone with house insurance. While the changes are a direct response to insurance claims from the Canterbury earthquakes, they will affect all New Zealanders. consumers may not realise these changes will affect them.”

Ms Stevens explains that “We are getting a lot of telephone calls from consumers, confused about the changes to house insurance from being based on the size of the house to a specified maximum sum insured.” Her advice to consumers is “You need to ensure that the sum insured for your home correctly reflects all the costs of rebuilding your home, if it is totally destroyed or seriously damaged.”

The ISO Scheme has a consumer information sheet on sum insured to assist consumers to understand the changes and try to answer the questions they may have. For more information see – What does sum insured mean?

In addition, Ms Stevens said “Many consumers are finding that their insurance premiums have increased significantly over the last few years”. Ms Stevens’s advice is that, if you are trying to reduce your insurance premiums, you could talk to your insurer, get quotes from other insurers, or talk to an insurance broker. However, Ms Stevens warns “A lower premium may mean you have less cover.  It always pays to check that you are getting the cover you want”.

The other changes to house insurance involve changes to excesses and limits on policies for certain events/items.  Commonly, these changes are in relation to features or structures, such as: fences, swimming pools, paths and driveways. In these instances, consumers will be required to pay more of the cost of replacing the item before the insurance will cover the remainder of the costs.

Ms Stevens said “I recommend that consumers read all of the information they receive from their insurers very carefully”.  Her advice to consumers is “Make sure you read your insurance policy. Your insurance cover may well have changed from last year.” For more information visit www.iombudsman.org.nz.

Further Information

The ISO Scheme assists consumers to understand and resolve issues themselves.  The ISO Scheme does this through an Enquiries Freephone line (0800 888 202), online FAQ’s and information sheets for consumers at www.iombudsman.org.nz, as well as the new Consumer Focus newsletter.

ENDS

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