Are you covered?

Are you covered?

Fewer NZers confident they have enough home and contents insurance cover

Auckland, Friday 24 June: A new survey from consumer satisfaction company Canstar Blue shows a concerning trend; fewer New Zealanders are confident they have enough insurance cover for their home and contents.

Over the past four years (2013 to 2016) the number of Kiwis who said they had enough cover has dropped from 83% to 72%, says Canstar New Zealand General Manager Jose George.

“In places where property values are high and rising, this number drops even further. Just 64% of Aucklanders and those from the Bay of Plenty are confident they have enough cover.

“Home insurance is a must-have for homeowners and contents insurance is an essential regardless of whether you rent or own.

“Having the right amount of insurance cover is important; particularly in the case of substantial or total loss. Review your cover regularly to make sure that it accurately reflects your needs and is still up to date.”

“If your premiums are a concern, there are ways to manage them. Opting for a higher excess can reduce the cost of insurance - it’s something that 20% of our survey respondents did last year, and comparing policies online is another way to ensure that you’re getting the best deal,” says George.

Are Kiwis taking too many chances with their possessions and security?

Maybe it was the long, hot summer, but it seems that many often sleep with their windows open (30%) and just over one in ten Kiwis (14%) leave windows open when they leave the house.

Many burglaries are opportunistic crimes, says George.

“Open windows could be just the invitation a burglar needs. Police advise keeping windows secure as burglars often enter through unlocked doors and windows.”

Forty per cent of survey respondents said they protect their homes with a burglar alarm. The further down the country the incidence of burglar alarms reduces; only 18% of those from Otago have an alarm compared to 56% of Aucklanders.

What’s more important to you?

New Zealanders said that the theft of their precious memories would hit them the hardest, with a third naming their photographs as their most inconvenient loss.

This was followed by the loss of a laptop at 28% and a mobile phone at 19%. Interestingly Kiwis are least worried about their jewellery being taken (12%).

Photographs are especially important to women (36%), while a laptop was significantly more important to men (31%).

Customer satisfaction ratings for 2016

On the whole, Kiwis are happy with their insurance providers as 79% renewed their policy with the same insurer. Top drivers of satisfaction are communication (29%), quality of service (27%) and value for money (26%).

Canstar Blue customer satisfaction ratings – Home and Contents Insurance

This year’s winner, for the fourth year running, is AA Insurance, recording a clean sweep of 5-star ratings across the board.

AA Insurance was the only provider to excel in communication - the top driver of customer satisfaction - and speed of response.

They provide a Home and Contents package where if both your home and your contents are covered, customers will pay less for each policy, says George.

“These kind of package deals make AA Insurance an attractive insurer, especially for the 63% of Kiwis who like to put all of their insurance under the same provider.”

The survey asked respondents to rate their insurance provider across seven variables:

1. Communication

2. Quality of service

3. Value for money

4. Ease of claim

5. Speed of response

6. Process

7. Overall satisfaction

Home and contents insurance by region:

Auckland: Aucklanders are most likely to have a burglar alarm (56%), least likely (equal with Bay of Plenty) to feel confident that they have enough home and contents insurance (64%) and most likely to have used an online insurance comparison website to help them select their home and contents provider (18%).

Waikato: Those in the Waikato are most likely to often sleep with their windows open (42%).

Bay of Plenty: Those in the Bay of Plenty are least likely to have a burglar alarm (33%), least likely (equal with Auckland) to feel confident that they have enough home and contents insurance (64%) and least likely to have used an online insurance comparison website to help them select their home and contents insurer (3%).

Manawatu/Whanganui: Those in Manawatu/Whanganui are most likely to have taken steps to reduce their premium (31%), most likely to belong to a neighbourhood watch group (29%), most likely to have a neighbour/family member/friend who has been burgled in NZ in the last year (26%), most likely to have other insurance with the same provider (83%), least likely (equal with Canterbury) to often leave the windows open when they go out (9%) and most likely to feel confident that they have enough home and contents insurance (94%).

Wellington: Wellingtonians are most likely to often leave the windows open when they go out (18%).

Canterbury: Cantabrians are least likely (equal with Manawatu/Whanganui) to often leave the windows open when they go out (9%).

Otago: Those in Otago are least likely to have taken measure to reduce their premium (12%), least likely to belong to a neighbourhood watch group (9%), least likely to have a neighbour/family member/friend who has been burgled in the last 12 months (9%), least likely to have other insurance with the same provider (42%) and least likely to often sleep with their windows open (15%).

About the survey

Canstar Blue commissioned I-view to survey 2,500 New Zealand consumers across a range of categories to measure and track customer satisfaction.

The outcomes reported are the results from customers who currently have a home and contents insurance policy and have made a claim in the last 3 years– in this case 641 New Zealanders.

ENDS

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