The recent eruptions of Mt Tongariro and White Island provide a timely reminder for us all to check our various insurance policies. It is no use finding out after the event that all those insurance premiums you have been paying do not actually provide the cover you thought you had. Conversely, you may discover that you are actually not insured for some events and a small monthly premium could have saved you tens of thousands of dollars in repairs had you taken out the appropriate insurance.
The Christchurch earthquakes provided us with a much needed reminder to review our insurances but insurance company call centre records plus feedback from insurance brokers indicates that the majority of New Zealanders – although they probably intended to do so, didn’t actually pick up the phone and ring to check if they had the right type and amount of insurance cover.
Key things you should check are:
- If either I or my spouse was killed by these events, then is there sufficient insurance in place to provide for my spouse and family?
- If I was injured or disabled, do I have sufficient insurance to pay me a liveable income to meet the fixed expenses we have?
- Is there enough insurance to rebuild the house and to relocate the family whilst this occurs. Is the amount sufficient to enable us to buy a similar quality house elsewhere?
- Is there enough insurance to repair or replace household contents, the car, boat, or other items of significant value. Are these insured at their purchase price, their depreciated value or their replacement value?
- Does my insurance company pay out if the event is an earthquake, volcanic eruption or flood?
- How does EQC work and how long do I have to wait? Can I financially afford to wait months or even years (as with some in Christchurch) before the issues around the insurance are resolved?
Insurance is a fundamental part of your financial planning. Don’t let another timely reminder of our personal and property vulnerability go by without taking action to review your insurance cover. Give us a call today and talk through what cover you currently have and whether it is sufficient to meet your needs.