Freeze on new insurance policies
Wellington: New Zealand’s largest insurance company has put a freeze on new home insurance policies as it assesses the impact of the earthquakes. IAG, which owns State, AMI and Direct Insurance said it would only insure properties that were already insured by the company for the existing sum.
“If we insure the property already and the new owner is willing to transfer that insurance to us then we will stay on-risk for that property,” IAG executive manager Dean MacGregor said. “What we are not doing is increasing the number of properties or the sum insured on any property we insure,” he said. The temporary freeze was a prudent step to ensure the viability of the insurance sector and would be reassessed every 24 hours, Mr MacGregor said. Tall Poppy Real Estate general manager Sam McIntyre said the freeze had caught many of his clients who were in the middle of selling or buying a property. Some banks were also requiring property buyers to obtain new building reports before their transaction could be completed, he said. RNZI
Earthquake damage at the Waiau Hotel.