The Insurance Council today issued a guide to the availability of insurance in Canterbury.
“The good news is that insurance coverage is available for new homes which provides the assurance everyone needs for the rebuild to continue at pace,” Insurance Council Chief Executive Tim Grafton said.
“Insurers are giving priority to existing customers. Even so, the availability of insurance is improving all the time, but insurers are less likely to provide cover in those areas where land, liquefaction and structural damage has occurred for other than existing customers,” Mr Grafton said.
The following summarises the general availability of insurance in Canterbury:
- In making insurance available in Canterbury, insurers will generally give their existing customers priority over new ones. Existing customers are being offered insurance for new builds or new house purchases.
- Existing customers who are selling their homes are being supported through the process by transferring the insurance to the new owner subject to insurers’ normal underwriting criteria. Cover for the new owner though will almost certainly be at a sum insured basis, not for total replacement.
- Insurers will generally provide home and contents for existing and new customers in TC1 and TC2 areas subject to normal underwriting considerations. Some will offer the same in TC3 areas for brand new homes and some for existing customers only.
- The most difficult areas to get home and contents insurance are Red Zone, TC3 and areas of the Port Hills particularly where properties have had structural, liquefaction or land damage.
- Insurance will not be provided for homes in the Red Zone.
- In TC3 areas where properties have had structural, liquefaction or land damage, only existing customers may get new insurance in special circumstances, but new customers are highly unlikely to get cover. Insurance requests are being reviewed on a case-by-case basis though with increasing flexibility for contents insurance.
- Properties in flood prone areas are likely to be subject to an individual assessment and the insurance provided capped at a specified sum.
For further information: Tim Grafton 04-495-8001 or 027-270-9084