New data reveals that house insurance costs in Wellington are now approximately twice as expensive as those in Auckland.
The latest figures from the insurance comparison site Quashed show that Wellington had the highest average annual house insurance cost in the year ending September, reaching $4,467, which is higher than Auckland’s average of $2,014.
The data also indicates that Wellington not only has the highest house insurance costs but also the most expensive contents insurance. Interestingly, the situation is reversed for car insurance, where Auckland drivers face higher premiums than their Wellington counterparts.
The price of contents insurance has skyrocketed by 58.7%, while dwelling insurance has increased by 50.4% since 2019.
Property investor Nick Gentle shared his experience, noting that his insurance premiums for Wellington properties have doubled since 2015, despite increasing excesses on policies. He remarked that his units are located in a relatively low-risk area, yet he has observed this trend affecting property owners across the board.
Consumer NZ insurance specialist Rebecca Styles corroborated these findings, stating that Wellington is indeed perceived as a higher-risk area due to its vulnerability to earthquakes, landslips, and severe weather events. She noted that obtaining online quotes for Wellington properties has become increasingly difficult as insurers demand more thorough risk assessments.
The Insurance Council of New Zealand emphasised that several factors contribute to these rising premiums. The heightened earthquake risk in Wellington—exacerbated by experiences from past seismic events—has led insurers to adjust their pricing models accordingly.
“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.”