Insurance an increasing concern for mortgage advisers
Squirrel Mortgages chief executive David Cunningham says mortgage holders need insurance to get a property, premiums are increasing dramatically in some places and in a minority of cases insurers won’t give coverage on properties at all.
Insurers have increased gross premiums by 20% and that has come through in the Consumers Price Index (CPI). For some properties, though, insurance premiums have doubled as insurers reweight risk.
“Insurance, its exclusions and cost will become a more challenging issue this year,” Cunningham says.
Whangarei-based Key Mortgages director and mortgage adviser Jeremy Andrews has come up against insurance issues already. A client who recently bought two properties can’t be insured because they had prior EQC claims. “Basically it meant the client couldn’t get mortgages as banks are not able to hold security over uninsured properties.”
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