Looking at insurance after Cyclone Gabrielle
While the full impact of Cyclone Gabrielle is unknown at this time, New Zealand’s Insurance Council (ICNZ) is reassuring people that the country’s insurers are ready to handle the rising number of expected claims.
They’re prioritising claims from people who have been displaced from their homes or are needing extra care, acknowledging that claims for properties requiring demolition or full rebuilds could take a bit longer to process.
Our thoughts are with those experiencing the devastating impacts of ‘Gabrielle’s’ fury. Please make sure you continue putting the health and safety of your whanau first.
For those less affected who are seeing the aftermath from a distance, now may be a good time to reconsider your insurance requirements.
Insurance is often one of the first items removed from the budget when things are tight, but as we’re seeing now, it can be a saviour when an unexpected event happens.
What to consider when buying insurance
Everyone has different needs depending on circumstances. Weigh up the risks of not having the insurance against the costs of buying it.
If you can’t afford something happening, consider taking out insurance. If you can cope with losses, it’s less important to have insurance.
Reviewing your budget will help determine this.
When buying insurance:
Shop around and compare quotes and cover. Most of this can be done online.
Use an insurance broker or financial advisor registered on the official government Financial Service Providers Register (FSPR) to help understand the best policies for your circumstances.
Choose the right excess to work for your budget.
Be honest and provide all the information requested – failing to do so could risk future claims being declined.
Read your policy (including the fine print) carefully and /or ask for help understanding anything that isn’t clear, especially the exclusions.
Buying different types of insurance from one company can help save money on premiums, so it’s good to consider the options and ask your broker what’s best for you.
Look for an insurer with a high credit rating so you know they can pay out on claims.
See if there are ways to reduce your premium like installing alarms, having a lockable garage etc.
Contact your insurer or insurance adviser as soon as possible if you need to find out about making a claim.
Carefully consider Loan Repayment Insurance – this could be an unnecessary extra cost.
Be aware of buying extended warranties when you purchase new items – in most instances you will already be covered by the Consumers Guarantees Act.
Finance and banking
Banks are offering help to people and businesses affected by this extreme weather event. Talk to your bank to find out what assistance they can offer.