Cold snap could lead to $10,000 repair costs during winter

Cold snap could lead to $10,000 repair costs during winter

How much could a cold snap cost to your home?

The average winter home insurance claim peaks at more than $10,000, data from IAG NZ during a cold snap in July last year has revealed.

The insurer found that burst pipe(s) due to cold weather was among the top reasons why homeowners claim during that particular cold event in July last year.

AMI regional manager for Otago and Southland Garry Smith said burst pipes were a common problem during winter for homeowners in the area. “We did experience claims here in Otago and Southland where home owners left for work and only found when they returned home that their water pipe(s) had burst during the day.

“For people who don’t have insurance, that damage could cost them thousands of dollars to repair,” said Garry Smith.

All home insurance policies require homeowners to take ‘reasonable care’ of a property, which includes taking actions such as shutting off water when the home is unoccupied.

AMI’s National Technical Specialist Chris Lysaght said “AMI does have an exclusion for unoccupied holiday homes that requires the water mains to be turned off for there to be any cover for damage involving water pipes and tanks. This greatly reduces any water damage from burst or leaking pipes.”

Damage in an unoccupied holiday home is more likely to go unnoticed for longer than in a lived in property.

According to IAG’s data, 97% of home insurance claims during that cold snap in July last year were reported within six weeks of it happening. The remaining 3% were reported six months or up to a year afterward.

Chris said lodging a claim as soon as damage occurs helps insurers resolve the issue quicker for customers. “We can get our assessors and other building experts on site to help minimise the damage and get things in motion for the repair costs covered by our policies.

“If a claim is reported late this can prevent us from getting the right people involved at the right time and also may prevent us from having sufficient information to determine the extent of sudden damage covered by customers’ policy.

“It’s important that a thorough approach is taken early to try to prevent avoidable further damage which in some cases might not be covered. For example rot that occurs because of an incorrect approach to drying.”

Apart from damages at home, a cold snap can also cause more accidents on the road. The average vehicle insurance claim made during that cold snap in July last year was more than $6,000, IAG’s data showed.

The latest IAG Safety Meter revealed that almost two thirds (62 per cent) of drivers said they do not routinely check their battery before the change of season; nearly half (47 per cent) said they had not checked their brakes ready for winter either, and one in eight drivers (12.9 per cent) had not checked their windscreen wipers or wiper fluid level ready for winter.

Chris reminded drivers of the importance of ensuring your car is winter ready, even though the start to winter has been mild this year.

“We have had a warmer start to winter in 2016 but Met Service has indicated more cold weather is on our way in August,” Chris said.

“Spots on the road where roadside shelter belts under shadow of hill sides tend to have ice over more easily and also take longer to melt. The lower visibility of these black ice areas adds more risks for winter road side accidents. ”

“Cold snap is hard on some mechanical parts in cars so it is essential to perform a seasonal check in order to protect yourself.”

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