Consumer Information

Overseas travel insureance

Insurance situation arising from travel
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Buying insurance

Cover your property losses
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Guidelines for resolving disputes

This is how member companies resolve disputes.
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Commercial insurance

Insure against businessesdisruption
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Motor insurance

Motor vehicle insurance can cover you against accidental loss or damage to your vehicle,
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Personal insurance

The types of cover available under personal insurance
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Marine insurance

Cover for commercial vessels and personal pleasurecraft
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Insurance fraud

An insurance claim is considered fraudulent when it is based on facts that are simply untrue
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Property Valuations

The potential for commercial property under-insurance is a very real issue, especially if property insurance valuations that are supposed to represent the full rebuilding costs are not reviewed at least every two years.

The Insurance Council is aware that a number of commercial buildings that were damaged in the December 2007 Gisborne earthquake were under-insured.

Demolition Costs

The costs for the damaged property demolition and site clean up that is required before rebuilding work can start are covered under the property insurance policy.

Normally an itemized provision is included in the insurance policy schedule. It is important that the demolition provision is accurate both for building and contents otherwise under-insurance could be the result. If demolition costs end up being higher than originally allowed for, there may not be adequate insurance to cover the replacement of the building and stock.

The professional valuer that is undertaking an insurance valuation will nominate a demolition provision for the building. Both the insured and the insurer would expect that the valuer has taken into account the cost of debris disposal. Many Council and private landfills no longer allow the dumping of certain hazardous types of material such as asbestos roofing, which is so common on many 1960's commercial premises, in their ordinary landfill sites. These types of hazardous materials need to go to licensed tips were permits need to be issued. The disposal of this type of material is significantly more costly that ordinary waste.

The Tamahere Ice Pack fire in April 2008 highlighted the real costs of debris removal for building contents. The damaged stock removal and disposal from the coolstore site far exceeded that for demolition of the building. As local Councils become fussier with what is allowed to be placed in their landfills, dumping costs are likely to rise. In some parts of the world some organic wastes are not allowed to be dumped into refuse tips, they need to be reprocessed.

The food industry is presenting insurance valuers with some unique challenges when it comes to the valuation of demolition costs.

The Insurance Council's advice to building owners is to review property insurance valuations at least every two years and question your valuer on their demolition cost calculations.

Demolition costs provisions, if not calculated correctly, could leave a building owner significantly under-insured.

 

 

 

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