House insurance costs twice as much in Wellington as in Auckland, data shows

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

Wellington had the highest annual cost in the year to September, at $4467 on average compared to $2014 in Auckland.

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

Quotes on the site for car insurance were up 18 percent compared to a year ago, house insurance was up 17 percent and contents insurance up 12 percent.

Insurance premiums have risen sharply in recent years - the price of contents insurance is up 58.7 percent, and dwelling insurance 50.4 percent compared to 2019 - although the pressure is understood to be coming out of the increases now.

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

The two units were not in a particularly risky area, he said, but the increase seemed to be "across the board".

He said it would be hard for some people, along with "rates costs on top of much higher taxes under Labour that don't roll off the books for a while".

Consumer NZ insurance specialist Rebecca Styles said her surveying also showed Wellington was the most expensive place for house and contents insurance.

"I gather this is because Wellington is perceived to be at a greater risk - earthquakes, landslips, and other weather-related events. Whether it continues to blow out I imagine will depend on seismic and weather-related events, and the number of claims."

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

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

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

The Insurance Council of New Zealand said there were a number of factors affecting insurance premiums, and natural hazard risks was one of them.

"In Wellington premiums will reflect a higher earthquake risk compared to other places such as Auckland. The experience from the Canterbury and Kaikōura earthquakes and more information about the Hikurangi Trench and the Alpine Fault has seen insurers adjust their understanding of the risks faced in regions like Wellington.

"We would encourage people to talk to their insurer about the options available to help manage their cover to be as cost-effective as possible, including the excess and other policy settings, while also shop around."

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