What’s causing house insurance premiums to rise?

House insurance premiums have increased significantly across various regions of New Zealand. Factors such as natural disasters, extreme weather events, inflationary pressures, rising construction costs, and higher claim rates have resulted in some insurance providers adjusting insurance premiums to cover the rising cost of settling claims and managing risk effectively.

• Natural disasters and extreme weather events, like floods, have become more frequent and severe, and insurers face higher pay-outs for home damages.
• Inflationary pressures have compounded the issue, driving up overall expenses, including the cost of materials and labour required for repairs or rebuilding, and increasing the cost of settling claims.
• Areas experiencing a spike in insurance claims are likely to see an increase in premiums for all homeowners in that region, as higher claim rates often indicate greater risk.
• Individual factors such as a homeowner’s claims history and the condition of their property also play a role in determining insurance premiums.

How to save money on house insurance premiums

When it comes to saving money on house insurance premiums, homeowners can consider several strategies. Comparing insurance quotes from multiple providers, bundling policies, opting for a higher excess, reviewing the sum insured regularly, avoiding making small claims, and getting advice from an Insurance Adviser are effective ways to reduce insurance costs.

• Shop around and compare quotes from multiple insurance providers to find the best insurance cover at the most competitive price.
• Consider bundling your house insurance with other insurance policies, such as car or contents insurance, to qualify for multi-policy discounts.
• Opt for a higher excess to lower your premiums but check you can afford the increased out-of-pocket expenses should you need to make a claim.
• Regularly review your sum insured – the maximum amount that your insurance provider will pay to rebuild your home in the event of a claim – to ensure it accurately reflects the current value of your property. Not having enough insurance cover could leave you financially vulnerable should you need to claim.
• Only claim for significant losses and avoid making small claims, as frequent claims can lead to higher premiums over time.
• Get advice from an Insurance Adviser and get help navigating the complexities of insurance policies and finding tailored economical solutions that fit your needs.

Reassess insurance coverage and explore your options

Climate change poses significant challenges for the future of house insurance. With the increasing frequency and severity of extreme weather events such as storms and floods, and rising sea levels posing a threat to coastal properties, insurers are faced with higher risks and increased pay-outs for damages to homes. These additional costs inevitably get passed on to customers.

As the impact of climate change evolves, it’s become increasingly important for New Zealand homeowners to regularly review house insurance coverage and check they have the right level of cover to safeguard their properties. Proactively planning and regularly reviewing insurance cover ensures your house insurance remains fit for purpose, so you’re not left underinsured should something go wrong or ending up paying too much for cover you don’t need.

Get help from an expert: Contact Max Insurances today to connect with an Insurance Adviser who can assess your insurance needs and review your existing policies to determine you have the right insurance cover. They can also help if you need to make a claim, by following up with the insurance provider and liaising on your behalf.

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Adding a minor dwelling

Building a minor dwelling on your property, such as a granny flat or an accessory dwelling unit (ADU) – a small, self-contained residential unit – could add value to your property and provide additional living space for family members or tenants. While this type of structure may improve your overall net worth and provide a valuable source of rental income, it is crucial to obtain the required consent before you start building, which could involve securing a resource consent and a building consent. Additionally, it’s essential you inform your insurance provider about this addition to your home.

Failing to add a minor dwelling to your house insurance policy could leave your new space underinsured or not covered at all. To ensure both your home and the minor dwelling are adequately covered in the event of an insurance claim, contact your Insurance Adviser or insurance provider to update your insurance policy and include coverage for the additional dwelling.

Building a swimming pool

A swimming pool can be a valuable addition to your home, enhancing your lifestyle and improving the value of your property. However, adding a swimming pool to your home also introduces new risks, as it’s not uncommon for accidents and injuries to occur in and around a swimming pool. Some insurance providers view swimming pools as a liability risk and charge higher insurance premiums to cover this additional risk. Before installing a swimming pool on your property, consult with an experienced Insurance Adviser, like those at Max Insurances, to find out about any necessary adjustments to your house insurance policy, such as increasing liability coverage to protect against potential accidents or injuries.

Adding a deck

Decks enhance outdoor living spaces, maximise entertaining areas, and add to your home’s overall appeal. But adding a deck could alter the replacement cost of your home, which would impact your house insurance coverage and your insurance premiums. Let your Insurance Adviser or insurance provider know about any proposed plans to add a deck and find out if you need to adjust your house insurance policy to cover the increased value. That way your house insurance accurately reflects the current state and value of your home, so you won’t be left underinsured should you need to make a claim.

Adding a security system

Installing a security system can reduce the risk of theft and damage to your property, and many insurance providers offer discounts on premiums for homes fitted with security systems. Let your Insurance Adviser or insurance provider know about the security system installation so they can assess whether you qualify for any discounts or if adjustments are needed to reflect the improved security measures in your house insurance policy.

Upgrading plumbing and wiring systems

Many older homes in New Zealand are fitted with outdated pipe materials such as polybutylene, galvanised steel, or lead which are considered a health hazard and high risk for water damage. Similarly, homes fitted with knob and tube wiring systems, which are not designed to handle the demands of modern appliances, are considered potential fire hazards.

Upgrading your home’s plumbing and wiring systems using modern materials reduces the risk of water damage and electrical fires, which in turn could reduce your house insurance premium. Let your Insurance Adviser or insurance provider know about any upgrades to the plumbing and wiring systems in your home, to determine whether the improvements warrant any adjustments to your policy or if you qualify for discounts because of the reduced risk of potential claims.

Keeping your insurance provider informed

Home upgrades, improvements and enhancements can add value to your home and improve your lifestyle, but it’s important these updates are included in your house insurance policy. Keep your insurance provider informed about any changes to your home to ensure that your house insurance policy is up to date and covers the additional features of your upgraded home. For insurance advice or expert guidance finding the right NZ insurance cover to fit your needs, contact Max Insurances to speak to one of our team of Insurance Advisers.

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Can I insure my older home?

If the home you’re considering buying was built before 1940, it may be harder to get house insurance. Older homes were subject to different building standards in the past, and most insurance providers in NZ consider older properties a higher risk.

The good news is that there are some insurance providers in New Zealand that offer insurance coverage for older homes. However, there may be variations in the types of coverage and terms available, and it’s worth noting that the insurability of an older home isn’t based solely on its age, but rather on a combination of factors.

Will the age of my home affect my insurance premiums?

The age of the home can influence the cost of your insurance premiums. Older homes can have a higher likelihood of certain issues – including weather-tightness or fire risk – because of wear and tear, outdated systems, or a lack of modern safety features. However, this doesn’t mean that insuring an older home is prohibitively expensive. It’s all about assessing risks and taking appropriate measures to mitigate them.

What should I be aware of when buying an older home?

As house insurance is usually a condition of property finance, when buying an older home, it’s essential you conduct thorough due diligence. Here are some key points to keep in mind:

• Building materials and construction: In the past, homes were often constructed using materials that are no longer common today and may be considered a fire hazard. Older homes with walls lined with scrim or sarking – hessian sacking stapled to thin wooden strips – may not be insurable because of the increased risk of fire. Before purchasing, it’s advisable to get a professional inspection to assess the condition of the property’s structure and to factor in the cost of removing any scrim and sarking lining the walls before it can be insured.
• Maintenance and upgrades: Older homes that have been well-maintained and upgraded over the years may be easier to insure. Replacing the original roof or rewiring the electrical circuits, for example, would greatly improve the property’s insurability and reduce the potential risk that insurance providers may perceive with an older home.
• Meeting certain safety standards: Older New Zealand homes were often clad in weatherboard constructed from native timber. These homes require ongoing and frequent maintenance and may be prone to issues with weather-tightness. Additionally, it’s not uncommon for older homes to have foundational issues and problems with the piling. It’s important to verify that the property meets certain safety standards. If the home hasn’t been brought up to these standards, it could result in the property being uninsurable.
• Historical classification: Older homes that have a local council or government historical classification have strict rules around preserving the building style of the home. To ensure the replication of historical or unique architectural features, repairing and rebuilding such homes requires the use of specific materials and specialised labour skills, which can incur additional costs. These expenses are taken into consideration by insurance providers and can often result in higher premiums.

What other factors can affect the cost of house insurance?

While the age of the home is a consideration, there are other factors that can impact the cost of insurance premiums for older homes:

• Safety measures: Rewiring and installing a security system, alarm, and smoke detectors can help lower insurance costs by reducing the risk of theft, fire, other incidents.
• Claims history: If the property has a history of multiple insurance claims, it could increase the cost of house insurance premiums. Investigate the property’s claims history and the impact any past claims could have on your own house insurance costs.
• Rebuilding costs: Due to the potential complexities of rebuilding an older home, house insurance premiums may be higher, while accurately estimating rebuilding costs is critical to ensuring you have enough insurance coverage.

Addressing house insurance concerns

If you are considering buying an older home, it’s important to address any insurance concerns early on in the process. Before making an offer, check that the property is insurable. Consult with an experienced Insurance Adviser, such as those at Max Insurances, who can provide you with valuable insights and assistance in assessing whether an older home can be insured. With the right information and guidance, you can get the house insurance you need to protect your investment and the things you love.

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The post Are Older Houses Harder To Insure? Here’s What To Know appeared first on Max Insurances.

Close and lock all doors

Regardless of the neighbourhood you live in, it’s crucial you close and lock all doors before you go to bed each night or before you go out. Invest in high-quality locks on doors, sheds and garages, and window stays on ground floor windows to make it harder for thieves to break in. Remember to lock up the garage and any other entry points, and teach young children not to open the door to anyone without an adult with them.

Keep keys and valuables in a safe place

Avoid leaving spare keys under the front door mat, in the letterbox, or under a pot plant, as burglars are all too aware of these common hiding spots. Instead, invest in a lockbox with a code to store the spare key in or install keyless entry points on front doors to avoid having to use a key. Lock up your valuables in a secure, well-hidden safety deposit box inside your home, and don’t leave expensive items in full view of windows. Dispose of any packaging that could alert burglars to expensive items you’ve bought.

Get to know your neighbours

Neighbourhood watch schemes are an excellent way to encourage neighbours to look out for each other, report suspicious activity, and keep communities safe. Be prepared before going away on holiday, ask your neighbours to keep an eye on your home, empty your letterbox, and clear any parcels that get delivered while you’re away. Parcels left at front doors can be a clue for burglars that a home is vacant.

Install a security alarm system

One of the best ways to deter thieves is to install a home security system that alerts you and a security company if there’s an attempt to break-in. By triggering an alarm when your home has been compromised, you can act right away to possibly prevent a break-in and loss of your valuables, while using security cameras and smart doorbells linked to your phone lets you keep an eye on your home from anywhere. Use Home Improvement Loans to cover the cost of installing a security alarm system if you’re short on cash and don’t want to wait.

Lights and curtains

Homes left in darkness can be a target for thieves, so it pays to invest in a timer to turn lights on in the evening if you’re going to be away. Similarly, curtains and blinds that are closed during the day could alert thieves to the fact that a home is empty, while leaving curtains and blinds half open – but ensuring valuables are hidden out of sight – creates the illusion that someone is home.

Review house insurance and contents insurance

Another important task for homeowners is ensuring you have the right amount and type of cover for your home and contents. Review your house insurance and contents insurance policies every year – or have your Insurance Adviser go over these with you – to check that you’re adequately covered in the event of a loss. Remember to inform your NZ insurance provider about any significant changes or renovations you make to your home to update your house insurance policy.

Alert the police if you suspect a break-in

If you suspect a break-in, don’t enter your home as the intruder may still be inside. Call the police immediately and wait for them to arrive to handle the situation. If you do experience a break-in, check that you have all you need to lodge a claim and contact your NZ insurance provider as soon as you can.

Keep your home and contents safe

Keeping your home safe is a top priority for any homeowner. By taking a few precautions and investing in home insurance and contents insurance to cover you in the event of a loss, you can ensure that your home and all that’s in it remains protected.

If you need assistance with home insurance or contents insurance, contact one of the experienced Insurance Advisers at Max Insurances. Specialising in helping Kiwis arrange insurance NZ wide,  our team can help provide peace of mind knowing that you have the right cover for your needs.

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The post Want To Keep Your Home Safe? Top Tips Including Insurance appeared first on Max Insurances.

Water damage that IS covered by house insurance

House insurance is designed to cover you in the event of sudden, accidental or unforeseen damage or loss, and most house insurance policies cover water damage caused by natural disasters and everyday accidents.

Flooding due to heavy rain, extreme high tides or overflowing rivers is usually covered by house insurance. However, if your home is in a flood zone, you can expect to pay more for your house insurance cover. When buying a new home:

• Pay careful attention to the layout of the property and the local geography.
• Always check the LIM report (Land Information Memorandum) for hazards.
• Check your council’s online hazard maps to see whether the property is built in a flood zone, a storm surge area, or is sited close to the high tide level.

“Sudden and accidental” water damage is usually also covered by house insurance and includes damage from things like a burst water pipe or sudden overflow from a hot water cylinder or a leaking ceiling coming from a roof damaged in a storm. Check your house insurance policy for specific cover and to see what everyday accidents are covered.

Water damage that MAY NOT be covered by house insurance

House insurance doesn’t cover gradual damage or deterioration to property over time. Gradual damage, including wear and tear, corrosion, rot and mildew, is often not easy to see and, while the results of gradual damage may feel sudden, the damage may have been getting worse for some time.

A good example of this is a leaking hot water cylinder which, over the space of several months, has rotted the floorboards beneath it. Replacement of the hot water cylinder isn’t covered by house insurance as this would be considered gradual damage.

Weathertightness issues or “leaky homes” are also typically not covered by house insurance. “Leaky homes” are homes built between the late 1980s and the mid-2000s using plaster cladding are a major concern in New Zealand and considered high risk to insurers. These types of homes need to be well-maintained to avoid water seeping into the home and causing mould, mildew build-up, and foundation issues.

If you are considering buying a property that has any of the features of a leaky home, it’s imperative you arrange an independent building inspection before making an offer. Consult with a Max Mortgages Mortgage Adviser to ensure the property is acceptable to the lender and meets lenders’ requirements, as your mortgage may be declined if the house you are buying is a leaky home.

Tips to protect your home from water damage

Water damage is one of the common causes of property-related damage and loss. Use these simple steps to keep your home safe from water damage:

• Know where the main water valve is located and how to shut off the water supply if you need to.
• Proactively check for leaks or signs of water under sinks, near appliances such as the dishwasher and washing machine, and around the hot water cylinder.
• Keep your gutters and downpipes clear of debris as blocked and overflowing gutters can lead to flooding, mould, and damp.
• Inspect your roof inside and out, checking for signs of water leaks, damp spots, or stains. Outside, check for cracks or broken tiles and repair these right away.
• Look for moisture and mould inside the home, checking for flaking paint or peeling wallpaper, black marks on walls, and condensation on windows, which may be signs of damp.
• Regularly maintain your home to help prevent water damage. Talk to the Personal Lending Team at Max Loans about Home Improvement Loans to help you keep up with home maintenance.

The right house insurance cover for your home

Wherever you live, it’s important to understand the potential risks you may be exposed to when it comes to water damage, and to ensure your house insurance adequately covers that risk. Contact a Max Insurances Adviser for NZ insurance advice, we can help you understand your house insurance policy, exclusions and limitations, we can also ensure your policy is up to date and that you have the right cover. If you need help processing a claim, talk to the team about how we can help.

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The post Does House Insurance Cover Water Damage? Things To Know! appeared first on Max Insurances.

1. Secure your home

While it may be a time for giving and sharing with family and friends, this time of year also comes with a higher risk of burglaries and damage to property. Many insurance providers experience an increase in house insurance claims around the holiday season. If you’re heading away on holiday, here are some ways you can protect your home when you’re not there:

• Let your neighbours know you’re away: ask them to keep an eye on your home and report any suspicious activity.
• Keep your travel plans offline: don’t share your travel plans on social media.
• Hide packages and valuables: store your gifts and parcels away from prying eyes, whether outside at your front door or inside near a window, and lock away valuables in a safe place.
• Put a stop to deliveries: cancel deliveries like newspaper subscriptions or food bags and have a neighbour clear your letterbox.
• Turn off Christmas lights: these could be a fire hazard so it’s best to turn off or disconnect any lights before you head away on holiday.
• Fit an alarm system: installing an alarm system can add an extra layer of protection to your home. Talk to our Personal Lending Team at Max Loans about a Home Improvement Loan to help cover the cost of installing a home alarm system to further protect your home while you’re away.
• Check that your house insurance policy is up to date and covers you while you’re away: your insurance provider may require you to inform them when you’re going on holiday so check with your insurance provider, particularly if you’ll be away for an extended time.
• Secure doors and windows, install sensor lights outside, and keep curtains and blinds partially closed.

2. Get your vehicle ready

Avoid getting stuck on the side of the road waiting for a tow truck when you head off on a road trip, by ensuring that your car is road-trip-ready:

• Book your car in for regular maintenance checks and servicing including oil changes and tyre pressure checks. Our Personal Lending Team at Max Loans can help arrange an Emergency Loan to cover vehicle maintenance and repair costs if you need these done in a hurry.
• Check that your warrant of fitness and vehicle licence are up to date.
• Ensure you have the right car insurance cover for you and your family. Talk to a Max Insurances Adviser if you’re unsure about your cover.

3. Stay safe on the roads

Holiday driving can be frustrating! With more traffic on the roads, congestion and driving in unfamiliar areas, it’s not unusual for more car accidents to occur at this time of year. Keep you and your family safe on the roads with these helpful tips:

• Maintain a safe following distance from vehicles in front of you.
• Schedule regular rest stops because fatigue from long trips can be deadly.
• Plan your travel to avoid the busiest peak traffic periods so you don’t get stuck in traffic.
• Slow down and be patient through road-work sites.
• Drive to the conditions.
• Buckle up.
• Watch out for hazards such as children or cyclists on the road.

4. Check your travel insurance

It’s no fun worrying about your possessions while you’re travelling. By taking a few extra steps to protect your valuables you’ll save money and avoid stress.

• Check that your travel insurance covers the area you’re travelling to and that it’s in place for the full duration of your trip.
• Let your insurance provider know if you’re planning to take part in any adventure activities as these may not be covered in your policy.
• Tell your insurance provider about any pre-existing medical conditions as these may need to be covered with a higher premium.
• Read the travel insurance documents carefully and take note of the inclusions and exclusions.
• Make sure you have comprehensive travel insurance because accidents happen and it’s important you and your family are covered for any unforeseen event.
• Make a copy of your important documents – such as travel insurance, air tickets and passport – and keep this copy separate from your travel documents in case you lose them.

Make memories this holiday season

Wherever you choose to travel this holiday season – whether it’s a road trip around New Zealand or an overseas break – a little preparation goes a long way towards keeping you and your family safe this holiday season.

For more information about house insurance or car insurance, get in touch with the team at Max Insurances, and let us help compare insurance NZ wide to find the right insurance for your needs and protect what matters most!

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The post Keep You And Your Property Safe During The Holiday Season appeared first on Max Insurances.

1. An uninsurable event

House insurance is designed to protect you in the event of sudden accidents or damage to your home, covering certain insurable events for the cost of repairs or a rebuild of your home. However, if the cause of damage falls outside the scope of cover, you may find your claim gets denied.

Most house insurance policies don’t cover all events, and there are usually exclusion clauses outlined in the policy documents. You may be able to add-on extra cover with a higher premium to insure against events that would otherwise be excluded, so talk to your NZ Insurance Adviser about extra cover for excluded events, and ensure you understand policy terms, conditions, exclusions and limitations.

2. Wear and tear

Homes are built to last, but without proper care things can quickly go wrong. Maintaining your home to a reasonable standard is vital in helping prevent damage due to wear and tear. If you don’t maintain your property and something goes wrong, your claim could get turned down if the insurance provider determines the damage was caused because of wear and tear, and that negligence on your part resulted in a claim. Ensure your home is well-maintained with a home improvement loan to cover the cost of home maintenance and repairs.

3. Not disclosing the facts

One of the biggest mistakes you can make when filing a house insurance claim, is to submit false information or be untruthful about the nature and scope of the damage. Not being truthful about your home, how it’s used or what the contents are, could result in your claim being denied if the insurance provider discovers that you’re deliberately misleading or providing false information. It’s important to be as detailed and accurate as possible when filing a claim, and never give false information or hide facts.

4. Not claiming on time

When you incur damage to your home and you need to file a house insurance claim, it’s important to do so right away and not to wait. Taking too long to submit your claim could result in it being denied. Check your insurance policy terms to find out what the deadline is for filing claims, and start the claim process as soon as possible to avoid having your claim denied because of failure to file on time.

5. Missing a premium payment

Getting behind on insurance premium payments or letting your house insurance lapse, means you won’t be covered in the event of an emergency and any claims filed will be denied. Pay your insurance premiums on time and in full to keep your insurance policy active. Set up automatic payments so you don’t miss any payments and can file a claim in the event of an emergency.

Get expert insurance advice

Your home is one of your most valuable possessions, which is why it’s so important to protect it with the right house insurance cover. Because even with the best protection measures in place, there are things that can go wrong that are out of your control. Having a house insurance claim denied is extremely stressful at a time when you need help the most.

At Max Insurances, we understand that comparing house insurance policies can be confusing. And without the right advice you could end up paying too much for your insurance cover or not having enough insurance cover. That’s why our Insurance Advisers take the time to ensure you understand your house insurance policy, what’s covered and what’s not. Get in touch if you need help finding the right insurance cover for your needs. Contact us today for a free, no-obligation quote.

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The post 5 Reasons Why House Insurance Claims Get Denied appeared first on Max Insurances.

1. Most house insurance policies don’t cover pet damage

Having bought a new leather sofa and given your cat strict instructions to stay off it, imagine your frustration when you return home from work and it’s been used to sharpen her claws! Or what about the giant hole the dog has dug up in your landscaped garden? Or the damage to the carpet after a toilet training disaster? Or the designer curtains that have been ripped and will need to be replaced?

Unfortunately, when it comes to pet damage in the home, most house insurance policies won’t cover the cost of repairs or replacement to items damaged by pets. Even with an add-on to your house insurance cover, insurance policies will generally exclude damage caused by pets.

From an insurance perspective, pets are considered to be under the policy holder’s control, so any damage they cause may be interpreted as damage caused by the policy holder. Which means the cost of pet damage will need to be covered personally. However, you may be able to get cover against pet damage on personal belongings under a contents insurance policy, so talk to your Insurance Adviser if this is something you’d like to know more about.

2. Liability cover could help pay for pet damage to other people’s property

Pet owners know that even the calmest of pets can behave unpredictably at times. For whatever reason, something triggers a reaction and they behave out of character, perhaps chewing, scratching, biting or even running away. When that happens, there may be some pet damage to other people’s property, leaving the pet owner with costs to cover.

When your pet causes damage to someone else’s property, it’s reassuring to know that many house insurance policies offer liability coverage, which could help pay for some of these costs. So if your dog runs into the road and causes a car crash, or you have to defend yourself against liability because of damage your pet caused, you may not have to foot the bill yourself. Check with your Insurance Adviser to find out more about liability cover.

3. It is possible to minimise pet damage

Most pet owners budget for extra costs such as vet bills, pet food, and pet insurance when adding a pet to the home. But many don’t give much thought to the cost of repairs to items damaged by pets. While it may not be possible to have pets at home without incurring some damage (after all, accidents can happen!), there are things you can do to minimise damage by pets and protect your home and contents.

• Regularly exercising your pet keeps them stimulated and can help avoid destructive behaviour that’s often brought on by boredom.
• Professional training helps improve behaviour, alleviate stress, and avoid conflict in your pet.
• An anti-chew spray could discourage pets from chewing on carpets, curtains and furniture.
• Creating a safe play space for pets means they have their own area in which to feel settled and secure.
• Putting away fragile items that could be damaged or pose a risk to pets helps avoid unnecessary accidents.
• Avoid lighting scented candles and wax melts as these could be knocked over and cause further damage.
• Regular health check-ups at your vet could uncover underlying health issues causing your pet to behave badly. If your pet causing damage seems sudden, get them to the vet to check if that ‘abnormal’ behaviour is the result of a physical problem your pet is experiencing. To help ease the financial stress associated with vet care, our Personal Lending team at Max Loans can assist with an Emergency Loan to spread the payments over an affordable time period, and ensure your furry friend gets the health care they need!

Protecting what matters most to you

When life’s unexpected events happen, it’s helpful to know you have the right amount of insurance cover in place to help cover the cost of repairs or replacement. If you’re unsure whether you have enough insurance cover for your house insurance or contents insurance, get in touch with an Insurance Adviser at Max Insurances. As one of New Zealand’s leading insurance advisory firms, Max Insurances can help you compare insurance NZ wide to find exactly the right insurance cover to fit your needs.

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The post Pet Damage At Home: What You Should Know appeared first on Max Insurances.

1. Avoid over-insuring

While under-insuring home and contents can leave policy holders out of pocket in the event of a loss, over-insuring is just as detrimental to your finances. Over-insuring usually means the property’s value has been overinflated, and it’s been insured for a much higher amount than it would cost to replace. Simply put, paying a higher insurance premium than what the property is valued at is a waste of money.

But aside from the cost, over-insurance is a concern for insurance companies too. It can lead to policy holders being tempted into making false claims in order to claim a higher amount and turn a profit – in other words, commit insurance fraud. To safeguard against insurance fraud, NZ insurance companies will only reimburse policy holders for the actual cost of the loss they have incurred.

So when it comes to house and contents insurance, the amount reimbursed will be based on the total replacement cost or the sum insured. That’s why it’s so important your house and contents are correctly valued in the first instance. For peace of mind knowing you have the right amount of coverage – and that you’re not paying more than you need to or less than you should – have a Max Insurance Adviser review your house and contents insurance policy.

2. Choose a higher excess

Increasing your excess – agreeing to pay more in the event of a claim – is one of the easiest ways to reduce your insurance premiums. Excess is the agreed amount that you’re required to pay towards any claim you make. Different insurance policies have different levels of excess. Most house and contents insurance policies have a standard excess of between $250 and $400, which is the amount you’ll pay if you make any claim.

A voluntary excess lets you choose a higher excess in lieu of a lower insurance premium. This is an ideal option if you don’t claim often, but it does mean you’ll need to pay a larger amount when you do make a claim. Be sure to review your policy documents regularly, to ensure you’re clear on what your excess is.

3. Skip the small claims

The number of claims you make may affect how much your insurance premiums cost. That’s because your claims history is one of the many factors that insurance providers take into account when calculating your insurance premium. Too many claims and your insurance provider may regard you as a high risk and adjust your insurance premium upwards to cover the perceived risk.

One way to avoid being penalised for making too many claims is to avoid claiming for anything small and to only claim for major losses. It also makes sense to skip small claims if you’ve opted to pay a higher excess, as you don’t want to be claiming for something that costs less than the excess you’re required to pay.

Not claiming could also help you save money as you may qualify for a no-claim bonus, where your insurance provider rewards you with a discount for not making any claims in a set period of time.

4. List any home improvements

Renovating a home or making home improvements can increase your home’s value. But that’s not all. Some home improvements actually help reduce house and contents insurance premiums too.

A home security system, for example, helps reduce the risk of break-ins and provides protection for your possessions and your family. Upgrades to electrical or plumbing systems not only improve your home’s efficiency, they can also reduce the risk of fire and water damage. While taking steps to protect your home from natural disasters – like fitting a new roof or installing shatterproof glass in windows – is just another way to further reduce the risk of a claim in the event of a natural disaster.

All of these actions could help lower your insurance premiums.

5. Shop around and compare

House and contents insurance policies vary quite significantly from provider to provider, so it pays to shop around and compare policies and inclusions. At the same time, choosing a house and contents policy based purely on price alone isn’t always the best option. So do your homework before deciding.

Here are some ways to find the best insurance deal available to you:

• Ask friends and relatives for recommendations.
• Use online ratings and read online reviews.
• Get at least three insurance quotes to compare.
• Put insurance providers’ customer service to test while you’re shopping around.
• Get in touch with a Max Insurances Adviser to go over your options and help you compare policies.

Find the right insurance cover for your needs

At Max Insurances, we know that not everyone has the same insurance needs. Which is why we work hard to understand your individual needs, identify risks you may be exposed to, and then help you find the best insurance NZ wide. What’s more, we’re committed to ensuring you don’t pay more than you need to, and that your claims are handled efficiently, by liaising with the insurance provider on your behalf.

Talk to our team about NZ insurance that is designed to fit your needs and your pocket. Get in touch to book an insurance review or if you have any questions about house and contents insurance.

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Is your car insurance or house insurance due for renewal soon? Read on to find out what you need to know.

How do I know when to renew my insurance policy?

When you set up an insurance policy, your insurance provider agrees to provide cover for house insurance or car insurance for a one year term. At the end of that term, insurance providers recalculate the cost of the insurance premium and make any changes to the insurance cover that are required. But before your insurance policy renews, you have a chance to review your policy and let your insurance provider know about any changes to your circumstances that could impact your insurance. Those changes are then applied to your insurance policy for the year ahead.

Most insurance providers send out a notification at insurance renewal time – either a letter in the post or an email – confirming your new policy details along with any changes to your premium. It’s important you carefully review these and contact your insurance provider or Insurance Adviser if you’re unsure about anything or would like to make any further changes.

What do I do at policy renewal time?

When your insurance provider lets you know that your car insurance or house insurance is due for renewal, here are some questions to ask yourself:

• Are there any changes my insurance provider needs to know about?
  Check that all details in your insurance policy are correct and up to date. If your circumstances have changed and the changes may impact your insurance cover, let your insurance company know about these. For example, if you have recently completed a home renovation project, check that your sum insured is still sufficient to cover the costs to rebuild your house. Or, if you have made certain modifications to your car that could affect its value, let your car insurance provider know about these.
• Do I have the right level of cover?
  Check the inclusions and exclusions listed in your policy document so you know what’s covered. Let your insurance provider know about any extra inclusions or things you want to remove from your policy. For example, if someone new is driving your car, or you’re using your home for business, these changes could impact your insurance policy and cover.
• Has the premium gone up or down?
  There are a few reasons why an insurance premium can increase or decrease. For example, if you made a claim during the year before, or you installed a new alarm system in your home, your insurance premiums may be affected.

If you’re unsure about the impact that changes to your circumstances may have on your insurance premium or cover, get in touch with the team at Max Insurances to go over your insurance policy with you and ensure you have the right level of cover to fit your needs.

Can I save money by switching insurance providers?

Insurance renewal time is not only a time for reviewing your existing insurance policies and ensuring they’re fit for purpose. It’s also a good time to assess how your existing insurance compares to others in the market. But it’s important not to focus on price alone. Here are some of the other things to look out for when comparing insurance quotes:

• Level of cover. Even if all policies are on the same tier – for example, comprehensive car insurance – the level of cover may differ between providers.
• Payment schedule. Some insurers offer a fortnightly or monthly payment option instead of an up-front annual payment, making budgeting easier. Others offer a discount for an annual payment.
• Service offerings. Being able to manage your policy online or use an online claims process could be a deal-breaker, making the insurance process much simpler.
• Discounts. Some insurance providers offer a discount if you already have another form of insurance cover with them.

If you do go ahead and switch providers, remember not to cancel your existing insurance until you have your new cover in place.

Get help at insurance renewal time

When it comes to choosing the right insurance cover, there are many factors to consider. If you’re unsure what to look out for, get in touch with an Insurance Adviser from Max Insurances. Our team of experienced advisers specialise in helping Kiwis arrange insurance NZ wide, and can help you compare policies and premium quotes to help you choose the right insurance, with inclusions and features that best meet your needs.

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The post Is Your Car Or House Insurance Due For Renewal? appeared first on Max Insurances.