Insurance advice for residents

Press, 21 January 1983, Page 3

Insurance advice for residents

Under State Insurance Office policies, householders paid an excess of $2O on house cover and $2O on contents cover, but one of the excess sums was waived if there was damage to both, Mr J. G. Walker, the Christchurch general manager, told Halswell storm victims yesterday. Some people were under the impression that only their homes were covered, but house cover included domestic outbuildings and fences.

Only a very few owners have “fire only” policies. These people have to lodge claims with the Earthquake and War Damage Commission, which will have an office with a staff of two

open in a marquee in Kinrara Place from 9 a.m. to 3 p.m. today. The deputy secretary of the commission, Mr C. W. Mouat, said from Wellington that the storm would definitely be classified as an “extraordinary disaster,” which means that people

with “fire only" insurance may claim from the commission for damage. If the commission declines to pay out, there is provision for appeal. One of the biggest problems in the insurance field used to be under-insurance. Home owners sometimes used to take out a cover which was based on an old valuation of their house or contents, then find when they cliamed that the insurance company paid out only part of their claim. However, Mr Walker said that in the case of Halswell residents affected by the storm, it appeared that most houses severely damaged were fairly new ones and were adequately covered. There is provision for cover and hence premiums to increase automatically each year to keep up with inflation, and Mr Walker said that this storm was an example of the need for such automatic increases.

People who have had to stay in alternative accommodation while their houses are

repaired would be able to claim a “reasonable amount” for such costs, said Mr Walker. Most vehicle owners still have to pay excess and will lose their no-claim bonus, if they are insured with the State or 5.1.M.U., the two largest vehicle insurers. However, a spokesman for the Earthquake and War Damage Commission said that it was possible that a vehicle owner with a comprehensive policy could recover the excess from the commission.

■ A portion of all vehicle premiums is paid by insurance companies to the /commission to cover extraordinary disasters. Some insurance companies provide policies under which a policy-holder may buy out the standard policy excess. It is also possible to ha v e an increased excess, with reduced premium, or conversely an increased premium with a nil-excess policy. Caravans are generally free of excess.