Increase the premiums of insurance companies to cover the cost of damage caused by bad storms in New Zealand. Add to harm consumers already affected by rising food prices and gasoline, the figures by Statistics New Zealand show the cost of insurance has increased from 34.2% in the past five years – more than double the inflation rate.

An insurance agent, Ahmed Anwar, said an example was a house of 111 square meters, which in 2002 cost $ 290.26 per year to insure. This year, the same house was re-insurance for an annual premium of $ 325.13 – an increase of almost 35%. During the same period, the premium for a 360-square-foot house went from $ 465.76 to $ 697.33, almost 50%.

AA Insurance, Chris Curtin said the premium increases were "absolutely" related to a wave of bad weather.

"We had the Manawatu and Bay of Plenty floods, snow storms of the South Island Gisborne earthquake and tornado Taranaki. The North has been hit by three major floods since last March, â € he said Curtin.

"We have at least one customer in the North Island that have had their houses completely flooded with water, and everything new in fixed and it happened again. "

Between 2002 and 2007, insurers paid $ 406 million for natural disasters, more than double bill of $ 174 million between 1996 and 2001.

Mr. Curtin said that "total loss", claims that are made when you lose the house, becoming more frequent. "Since 2002 the average cost of accidents at home has risen by 100%. During the same period the cost of premiums increased 39 percent. But after three or four years, should be transmitted. "

The State insurance sales and media director national communication, Mike Tully said factors such as frequency of adverse weather events and rising construction costs pushed up the cost. Without However, the Spokesperson Tour de Seguros Kevin Meek said that the development and construction costs have a much greater effect on home insurance then.

A corridor insurance who declined to be named said insurance companies had passed the money kept aside to pay claims and try to rebuild, increasing premiums.

"These things go in cycles," he said.

Insurance Business Council Corporate Manager Terry Jordan has increased premiums as companies have tried to recover the cost of disaster, while people on the other hand were more than purchase insurance for disasters and other events showed interest has been met.

Mr. Jordan said that competition among providers say the companies most affected by bad weather claims could not afford afford to put the price too quickly. The proportion of the house and the contents of the premiums paid to claims have risen 73% in 2002 to 83% in 2007.

"If add more of that business costs for the industry, which is about 25 percent, the loss of the inner house and contents. "

Editor Consumer magazine, David Naulls said consumers hit by rising premiums should everyone. "There is considerable variation among firms, even home and contents insurance. We looked and found that 35 policies from 18 companies and a series of awards. "

Naulls said he expects that the premiums are increase with global warming events related to climate increased.

Last year, the insurance industry paid U.S. $ 96.25 million for disasters related to climate. Of this amount, 61 million were to claims for flooding North in July.

About the Author:

Sofia is an author of several articles pertaining to Home Insurance. She is known for her expertise on the subject and on other Business and Finance related articles.

Article Source: ArticlesBase.com – Stormy Weather Hits New Zealand’s Home Insurance Bills

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