Data shows home insurance in Wellington is twice as expensive as in Auckland

Home insurance for properties in Wellington costs about twice as much as in Auckland, new data from insurance comparison site Quashed shows.

Wellington had the highest annual costs in the year to September, averaging $4467, compared to $2014 in Auckland.

Home contents insurance was also most expensive in Wellington and least expensive in Auckland, while the opposite was true for car insurance.

Quotes on the site for car insurance increased by 18 percent compared to a year ago, home insurance increased by 17 percent and home contents insurance increased by 12 percent.

Have insurance premiums has risen sharply in recent years – the price of home contents insurance has increased by 58.7 percent, and that of home insurance by 50.4 percent compared to 2019 – although it is believed that the pressure is now coming from the increases.

Property investor Nick Gentle’s insurance premiums for his Wellington properties have doubled since 2015, despite the excess on the policies increasing.

The two units were not in a particularly high-risk area, he said, but the increase appeared to be “across the board.”

He said it would be difficult for some people, along with “the cost of tariffs on top of much higher taxes under Labor, which are not yet rolling off the books for a while”.

Consumer NZ insurance specialist Rebecca Styles said her research also found Wellington was the most expensive place for home and contents insurance.

‘I assume this is because Wellington is thought to be at greater risk: earthquakes, landslides and… other weather-related events. Whether it continues to break out will, I think, depend on seismic and weather-related events, and the number of claims.”

She found an average price for insurance for a standard house of $3733.24 in Wellington for home and contents and $2441.51 in Auckland,

For a large house it was $5088.34 in Wellington and $2822.58 in Auckland

“I’m also finding it harder to get quotes for Wellington online because insurers want a more thorough risk assessment. This makes it harder to shop around.”

The Insurance Council of New Zealand said there are a number of factors that affect insurance premiums, and natural disasters are one of them.

“In Wellington, premiums will reflect a higher earthquake risk compared to other places such as Auckland. The experience of the Canterbury and Kaikōura earthquakes and more information about the Hikurangi Trench and the Alpine Fault have led insurers to improve their understanding of the risks in regions such as Wellington.

“We would encourage people to talk to their insurer about the options available to manage their cover as cost-effectively as possible, including deductibles and other policy settings, while they also shop around.”