Household insurance premiums may rise

Press, 18 April 1981, Page 12

Household insurance premiums may rise

PA Auckland Householders’ policies are likely to cost more soon as insurance companies reel from losses after several storm-damage claims this year and increasing burglary claims.

The chairman of the New Zealand Insurance Council, Mr Jack Renwick, said the combined effect of both would mean that people will pay more to insure their property.

"Burglaries are killing us,’’ he said. "The volume of claim and losses in that area alone is enough to put up policy costs.’’ Mr Renwick said he could not remember when there had been so many claims from flood and storm damage. "and we are not even into the winter vet.'*

The cost to insurance companies in the flood-stricken

areas has not yet been calculated. Mr Renwick said that' if Thames-Paeroa areas were declared disaster areas, the Earthquake and War Damage Commission handled claims only from people who

carried no insurance cover. The Insurance Council has put its emergency plan intc action and offices have been set up in Thames and Paeroa to handle claims and inquiries from people insured with

any company. Residents returning home found carpets, wallpaper, electrical equipment, and gardens wrecked and the council said claims began tc follow almost immediately. Most of the claims have beer for household goods. A spokesman said the insurance office expected up tc

1000 more claims within the next lew days.