Renewing your house insurance after 1 July will cost you

Changes to the Earthquake Commission’s EQCcover comes into effect on 1 July this year — but if you get in now you can possibly escape the price hikes, at least for the coming year.

With 1 July only days away, people with residential home or contents insurance (or residential cover as part of a policy) are advised to either budget for increasing costs or seek alternative quotes before 1 July — particularly if your policy is due for renewal in a month or two. To make use of the current rates, the policy will need to commence prior to the 1st July 2019.

The residential policy hikes are a result of the Government’s decision to remove the $20,000 EQCover for domestic contents (this now has to be covered solely by insurers even though the EQC levy prices — charged at 20c per $100 of cover — remain unchanged).

EQCover for domestic buildings will increase from $100,000 to $150,000 (ex GST). In the event of a natural disaster, insurers will cover losses above $150,000 (up to the policy sum insured), if required.

A comparison between the pre- and post 1 July 2019 levy changes for an Auckland, Hamilton and Rotorua address – based on the same criteria for all quotes ($400,000 home, 49 year old person, $50,000 contents and no previous claims) – reveals the unnecessary costs you would have to bear if you wait to renew after 1 July:

 

You may look at that and think ‘it’s only a $100 or so’ – but then again, that’s a dinner or night out with your favourite person. The difference is taking action now, or waiting for the changes to happen to you.

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