AMI, State customers face $1000 hikes
State and AMI policyholders with homes at heightened risk from earthquakes, landslips and floods have been told to brace for a rise in house-insurance premiums.
The move follows Tower’s decision earlier this year to start individually pricing earthquake risk on homes instead of sharing the risk evenly across all its policyholders.
IAG New Zealand, the subsidiary company that owns State and AMI, said the average rise in premiums for people with homes in areas exposed to heightened risk of quakes or floods was $91.
But ‘‘a handful’’ of customers could expect increases or decreases of about $1000, it said.
AMI and State policyholders would individually learn what their premium rise or fall would be when their annual renewal notices come through, some as soon as next week.
Three-quarters of AMI and State policyholders would see their premium rise, averaging $91 a year. The remaining quarter would see their premium fall, on average by $54 a year.
The changes mean IAG will collect a larger total premium haul on its AMI and State houseinsurance portfolio, but the company blamed that on an increase in weather-related claims.
IAG has decided not to hike premiums at NZI, a business it owns that sells house insurance through brokers.
The areas where some State and AMI policyholders would see rises include parts of Whakata¯ ne District, Hawke’s Bay, Wairarapa, Greater Wellington, Marlborough, the West Coast, Kaiko¯ ura, Waimakariri District and Dunedin.
Areas where premium drops are expected are parts of the upper North Island, Taranaki, Selwyn District, North and Central Otago and Southland.
Customers in other areas were expected to see average decreases in their total premium of $54, IAG’s executive general manager of consumer, Kevin Hughes, said.
IAG suggested customers consider reducing their cover by lifting their excess levels, or even by buying more policies.
‘‘For some of our customers, this will be a challenge and we’re committed to working with them through this,’’ Hughes said.