IBANZ Urges Home Buyers To Consider Insurance Before Signing Up

The Insurance Brokers Association of New Zealand (IBANZ) is urging home buyers to think with their heads rather than their hearts when committing to a real estate purchase.

New actuarial data supplied to Treasury shows house insurance premiums have jumped by more than 30 percent in some areas of New Zealand while insurance companies are blocking some regions from being able to get online quotes, as concerns about climate change driven natural hazards increases.

IBANZ reports its broker members have never been busier as clients are finding it more difficult to self-serve when it comes to securing insurance cover for their most valuable asset.

IBANZ CEO Mel Gorham says, “Homeowners may now find it more difficult to arrange house cover in order to settle on a newly purchased property, even if it wasn’t affected by last year’s weather events, as insurers are now more sensitive to possible natural hazard risks.”

“Insurance brokers can often help homeowners in these circumstances as they have good local knowledge, expert understanding of the insurance market and access to policy options that individual homeowners can’t purchase directly.”

However, she says home buyers can also do a lot to help themselves by thinking about insurance before committing to a real estate purchase.

Gorham says, buyers need to think carefully about whether the property potentially has increased natural hazard risks and seek competitive insurance quotes before committing to the purchase to consider if insurance cover is achievable and affordable.

“Remember, if you need a mortgage then your lender will want to see evidence that there is insurance cover in place before advancing the funds.”

“It’s easy for first home buyers to in particular to be wowed by views, school zones or that dream kitchen, but IBANZ urges buyers to stay grounded in reality and make sure the property is really a sound investment before signing up.”

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