Fire & General premium increases explained
You may have noticed that this year your total insurance cost has increased, we wanted to give you some information to understand why that is.
Part of the increase is directly due to Insurers honouring their policies and paying more and higher value claims, with Insurers covering meth contamination, increased building repair costs, major earthquake damage from Kaikoura, increases to vehicle repair costs etc. The other part of the increase is from insurers having to collect government levies for the Earthquake Commission and the Fire Service.
There are many components that have compounded to create this jump in total cost, not least of which is changes to Government Earthquake Commission Levies (on domestic properties) and Fire Service Levies on all commercial and domestic property and vehicles.
All Insurers must charge these increased Government Levies and pass them straight on to the Government and of course GST also applies on top.
We will always do our best to ensure that you have an excellent cover protecting your assets. If you were to take an inferior cover, you would still be obliged to pay all the Government Levies so the small saving between the cost of an excellent cover versus an inferior cover makes it even more valuable to have the right cover protecting your assets.
What is the overall impact of Government Levy changes:
On an Owner-Occupied Dwelling: $92 per year
Personal Contents: $18.40 per year
Rental Property: $110.40 per year + Additional Cost of Methamph