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Insurance companies are increasing premiums to cover the cost of damage caused by bad storms in New Zealand. Adding injury to consumers already affected by rising food and gasoline prices, Statistics New Zealand figures show the cost of home insurance has increased by 34.2% in the last five years – More than double the inflation rate.
An insurance agent, Ahmed Anwar, said an example of this was a house of 111 square meters, which in 2002 cost $ 290.26 a year to insure. This year, the same house was re-assured of an annual premium of $ 325.13 – an increase of almost 35%. During the same period, the premium for a 360-square-foot house went from $ 465.76 to $ 697.33, an increase of almost 50%.
AA Insurance, Chris Curtin said the premium increases were "absolutely" in connection with a series of bad weather.
"We had the Manawatu and Bay of Plenty floods, snow storms south of the island, the earthquake in Gisborne and tornadoes in Taranaki. Far North has been hit by three major floods since last March, â € says Curtin.
"We have at least Northland a client who had their house completely flooded with water, fixed everything and moved back and it has happened again. "
Between 2002 and 2007, companies insurance paid 406 million U.S. dollars for natural disasters, more than double the $ 174 billion bill between 1996 and 2001.
Mr. Curtin said that "total loss", he says, that one makes when you lose your entire home, are increasingly common. "Since 2002 the average cost of home loans has increased by 100%. During the same period, the cost of premiums has increased by 39 percent. But after three or four years, must be transmitted. "
State Insurance's national sales manager and the support of Mike Tully said that factors such as more frequent severe weather events and building costs were pushing up the cost increase. However, the Tower of Insurance spokesman Kevin Meek said that the construction and increased construction costs have a much greater effect on home insurance premiums that time.
An insurance broker who declined to be named said insurance companies had spent by the amount of money kept aside to pay claims and were trying to build again to increase premiums.
"These things go in cycles," said.
Insurance Council, Corporate Affairs Manager Terry Jordan premiums has increased as companies sought to recover the cost of disasters, while on the other side more people take out insurance, as disasters and other events highlighted the value of being covered.
Mr. Jordan said meant competition between suppliers of the companies most affected by bad weather, the claims could not afford to put prices up too quickly. The proportion of the house and the content of the premiums paid for claims has risen from 73% in 2002 to 83% in 2007.
"If you add on top of that the costs to business industry, which are about 25 percent, are making a loss of national housing and content.
Editor Consumer Magazine, David Naulls said consumers hit by rising premiums should shop around. "There is great variation among firms, including in the home and contents insurance. We looked and found that 35 policies from 18 companies and a series of premiums.
Naulls said he expects premiums will rise as global warming-rising weather-related.
Last year, the insurance industry paid 96.25 million U.S. dollars for disaster weather. Of this, $ 61 million went to the claims of the Far North floods in July.
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Article Source: ArticlesBase.com – Stormy Weather Hits New Zealand’s Home Insurance Bills
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