New Zealand is an amazing place to buy a home, through beautiful meandering grasslands to the rocky snow covered peaks we have a wide variety of terrain. However dangers lurk and insurance companies are all too aware of them.
Different places different risks
Historical events occupy the minds of insurance companies when considering risks. Flooding in quite a hilly city like Auckland was not really a thing before the heavy downpours. Now we have pretty detailed maps thanks to the council. The sea level is something which has become a consideration, coastal inundation information is now available with a lot of councils. Even if the worst is a long way away – you always have to consider the cost of insurance in the future as events or claims start increasing.
We are all too aware of earthquakes as you head further south, Christchurch has the benefit of work done post the big earthquake. With the soil quality marked by zoning, T1, T2 and T3. Other areas such as, Wellington and Hawkes Bay also experience earthquakes. With Hawkes Bay having also gone through some major flooding and parts also dealing with coastal/river inundation.
Local councils are a great source of information along with insurance companies.
Investor beware
Keep in mind that technically most insurance is on an annual renewal, meaning terms can be changed at a later date(although uncommon).
Another aspect we often don’t think about is the time it can take to repair a home after a wide scale event. Resources such materials and builders can be placed under pressure. A lot of rental insurance offered has a six month payment term, however some can offer twelve months.
