IAG pulls out of Wellington home insurance
Living in Wellington means you will most likely be exposed to earthquakes, storms, flooding, landslides or even a tsunami at one stage or another. IAG, NZ’s largest general insurer (which includes brands like AMI, State, NZI, Lumley and Lantern Insurance), has said that’s why they won’t be insuring the contents of Wellington homes anymore. They say they’re “tracking with evolving environmental risks”. In other words, IAG will offer policies on a city by city basis which means customers who are assessed as more likely to use insurance, will find it harder to buy.
Right now, if you’re already covered, you’re good to go. It’s the market newcomers who could be in trouble as there’s chatter that IAG will also refuse to insure actual properties’ home and contents! IAG has more than half of New Zealand’s general insurance, and underwrites most of the major banks’ insurance, so this is big news. You can’t get a mortgage if you don’t have home insurance.
If Wellingtonians flock to other insurers, those companies will be more exposed to big, post-disaster pay days. And that’s a guaranteed way to make these companies decide it’s time to hightail it out too! If new Wellington clients are locked out, prices might start to drop…
My advice is to check if you’re covered and have the cover you need. If you need help, don’t hesitate to get in touch. I don’t only help with loans, I can also point you in the right direction for insurance.