Hello from Axico - October 2017
10 October 2017
Hi there from the Team at Axico – October 2017
Hopefully this email reaches you in good health and prosperity, as we finally spring forward into the warmer months!
We haven't sent an email out to our clients in quite a while, so are wanting to check in as the end of the year nears - and also share some updates & reminders with you all.
AMP's INCREASE OF PREMIUMS (House, Contents, Car, etc)
You may have noticed a slight increase in premiums throughout 2017, either as your policies renewed or upon adding new business to your policies.
This is due to a variety of reasons which have affected all insurance companies; we have listed these below:
- The November 2016 Earthquake (& other recent natural disaster events) has increased both the company and natural disaster premiums across all insurance companies.
- The EQC levy has increased, as this figure is being constantly reviewed. As of 01/11/2017 the maximum levies payable (excluding GST) will be:
- House: capped at $200 - an increase of $50
- Contents: capped at $40 - an increase of $10
- The Fire Service Levy has also been reviewed, and has been increased across homes, contents, and motor vehicles.
- Your Sum Insured automatically increases upon renewal to keep up with the rate of inflation, as relayed by AMP below:
Each year we analyse a range of factors which influence the cost of rebuilding and repairing domestic buildings, and replacing domestic contents in New Zealand. We’re noticing significant increases in the cost of building materials and compliance for newly built houses and as a result have increased the annual indexation rate we apply to home building sums insured from 5% to 6.5%.
- Reinsurance premiums have increased, which for the most part AMP have tried to absorb themselves - however this has affected clients premium somewhat.
- The above factors have a flow-on effect, with GST then increasing as a result.
RENTAL PROPERTIES & IMPROVED LANDLORDS EXTENSION
We have also received multiple queries regarding premium increases on rental properties - especially those that have Landlords Extension. Although your premiums have increased the quality of cover has also increased substantially.
Previously AMP had a separate policy that landlords could take out, called Landlord Plan; this was optional cover, on top of the standard home cover with Landlords Extension.
AMP have now incorporated this policy within the standard homecover with Landlords Extension, offering clients more comprehensive cover. This includes:
- Methamphetamine Contamination
- Malicious Damage or Theft
- Loss of Rent due to non-payment by tenants
Further information about this cover can be seen on the attached flyer, or on pages 14-16 of the AMP Policy Wording (also attached).
I have also attached a flyer regarding Landlord Obligations (or you can refer to page 22 of the policy wording). Be sure to read over this to ensure you are not accidentally jeopardising your cover in any way.
AMP's RECENT COST-FREE POLICY UPGRADES
- The limits for specified items have increased, meaning that any items of jewellery or bicycles under $5,000 will no longer have to be specified, but can instead fall under your general contents Sum Insured.
- The limit for Gradual Damage cover has also increased to $5,000, and Alternative Accomodation has increased by $20,000 - meaning that AMP will cover up to $50,000 of Alternative Accomodation should an event cause you to vacate your home.
- The Hire Car After Theft benefit has been introduced at no cost, and the optional Hire Car After an Event benefit has been added at $90 per annum ($78.26 + GST). Both of these benefits provide cover for 14days.
- Although it's not available yet, AMP is working on adding an optional Roadside Assitance benefit - we will be in touch once this is in place!
- For those of you who have completed the Cordell Online Calculator and therefore qualify for the free Sum Extra benefit (flyer attached): please remember that in order to remain eligible for this, your Cordell calculation - upon which your Sum Insured is based - must be under three years old.
- Also consider that any aspects of your home you feel are not taken into account within the Cordell Calculator, such as an ornate architectural feature, you should then manually account for within the final sum insured figure for your home.
- Also, for those clients who have a BIP/Business policy and have a commercial building insured, any valuation for those buildings must be less than 2yrs old in order to be utilised by the AMP underwriters.
A reminder that further resources are always available to you on our website, at axico.co.nz
If you have any queries or would like to get in touch to discuss any of the above, please phone Chloe, Jillian or Emily at the office on 03 343 2211, or email us back at this address.
We look forward to hearing from you!
The team at Axico
Client and Adviser Support Services
PO Box 8849, Christchurch 8440
Phone: +64 3 343 2211, Fax: +64 3 343 2215