Much to my mates dismay, I like talking about insurance! It’s why I am an insurance broker. And with all the changes to Home Insurance in the last couple of years I've had the chance to talk about insurance like never before.

For the benefit of my clients, NZ insurance buyers and my mates I want to talk about it again.
 

The not so historic history

July 2013 - Insurance landscape in NZ had the most significant change for 30 years

All insurance companies stopped insuring houses on the basis of 'Full Replacement Cover'. This had been the favoured and trusted method of insuring for both insurance companies and home owners for over 30 years.

In July 2013, insurance companies went back to 'Sum Insured Replacement'. This meant the home owner had to insure their home for a fixed amount. If you currently have your home insured this is how your home will currently be covered.

The insurance companies stood in front of brokers (literally!) and the NZ public and told us this was the way of the future.  But being a sceptic I always thought there would be more changes.
 

Fast forward to Feb 2015

Fast forward to February 2015 and the home insurance landscape has changed.  And with it are options and choices for insurance buyers:

...One insurance company is now offering Area Replacement, similar to Full Replacement Cover, for non-natural disasters.

...Another insurance company is only offering standard sum insured replacement.

...And now a third insurer is offering Full Replacement Cover for non-natural disaster claims, but only if you have had your home valued.
 

Uncomplicating the options

Home insurance is not the set and forget policy it used to be. Each option has its benefits and drawbacks and at times it can be hard to know which one has the right benefits for you.

As I keep telling my mates, it’s so important for you as a home owner to understand what policy you are buying, how the insurer will cover you at claim time and if this is what you want from your  policy.

I urge you to think about what you want to protect, and what you want at claim time before choosing the right policy for you.

By Stu Cooper, previously National Domestic Manager @stu_cooper