PHOTO: ROSS GIBLIN/STUFF – Homeowners who have house insurance with AMI and State will see rises in their premiums if they have homes at higher risk of damage from natural disasters like earthquakes, such as homes in Wellington.
State and AMI house insurance policyholders with homes at heightened risk from earthquakes, landslips and floods have been told to brace for a rise in 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, the Australian sharemarket-listed company which owns State and AMI said the average rise in premiums for people with homes in areas exposed to heightened risk of earthquake or flood was $91.
But “a handful” of customers could expect increases or decreases of around $1000, the insurer said.
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* All earthquake-prone houses could face insurance hike
* Tower insurance premiums put the squeeze on homeowners
READ MORE VIA STUFF