Strong building performance - excessive premiums

Strong building performance out of step with excessive premiums

Wellington has endured a punishingly high-cost insurance regime that is out of step with its largely resilient building stock, Property Council New Zealand’s Wellington Branch argues.

“Branch President Ian Cassels said Wellington grappled with its largest earthquake in 70 years this week and performed very strongly.

“Besides superficial damage to non-structural elements, Wellington’s building stock has come through relatively unscathed. A number of buildings deemed earthquake prone have come through with significantly less damage than some of the newer buildings around the city.

“Wellington is and has always been a city prepared for earthquakes with buildings adhering to a building code that is higher than that in the rest of the country. Our building stock is resilient and over the last couple of years, owners have been preparing for further earthquakes with various strengthening projects. “

Mr Cassels said that since the tragic events in Christchurch of 2010 and 2011, the city has endured a punishingly high insurance cost regime with no prospect of recovering recent costs as they fall beneath the 5% site excess.

“Central Government and the Wellington City Council ought to consider the gross annual waste of excessive premiums that could contribute far better to the long-term health and vitality of our most efficient city if there was a joint approach to the problem.”

Wellington's commercial property is productive infrastructure and its owners, like any other New Zealand business, are facing daily challenges head-on.

ENDS

© Scoop Media