Over two-thirds of New Zealanders fret over house insurance costs

Consumer NZ urges New Zealanders to review their current level of cover and shop around.

New Zealand’s house insurance has surged by 97% in the last decade, whilst contents insurance increased by 48%.

Wellington and Auckland saw significant premium hikes, attributed to factors such as reinsurance costs, extreme weather events, and risk-based pricing.

“This continues a pattern we started to see last year. We urge New Zealanders to review their current level of cover, and shop around,” said Rebecca Styles, investigative team leader at Consumer NZ.

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In Consumer NZ's recent insurance satisfaction survey, over two-thirds of respondents expressed concerns about the high cost of house insurance, leading 8% of homeowners to let their policies lapse due to affordability issues.

To mitigate rising costs, Styles suggests increasing the excess and considering fire-only or fire and burglary policies if comprehensive coverage is unaffordable. 

Some insurers offer discounts for combined policies or claims-free history.

Consumer NZ's survey indicates that only one in five respondents are likely to switch insurers in the next year due to difficulty in comparing providers' and insurers' requirements for risk assessments before providing quotes.