The Importance of Having Up-to-Date Insurance in New Zealand: A 2024 Perspective
When reviewing your home insurance, it's crucial to stay informed and proactive. Make sure your policy covers the full replacement cost of your home, especially with rising construction costs. Don’t overlook the importance of natural disaster coverage, given New Zealand's susceptibility to earthquakes and floods. Keep your contents insurance up-to-date, consider adequate liability protection, and always understand the fine print of your policy. By regularly reassessing your coverage, you can ensure your home and assets are well-protected against unforeseen events.
Always be prepared
In 2024, the importance of keeping your insurance policies current in New Zealand cannot be overstated. With our unique geographic location and climate, Kiwis face a range of natural hazards, from earthquakes to floods. As the frequency of extreme weather events increases, ensuring your insurance is up-to-date provides crucial financial protection and peace of mind.
Recent economic shifts, including rising interest rates and inflation, also impact the cost of living and rebuilding after a disaster. Ensuring your coverage reflects current property values and construction costs is essential. This year, many New Zealanders are reassessing their policies to align with the changing economic landscape, ensuring they are not underinsured.
Additionally, updated insurance can offer new benefits and protections tailored to emerging risks. As we move further into 2024, staying informed and proactive about your insurance policies is a smart move, safeguarding your assets and ensuring resilience against unforeseen events.
For personalized advice, reach out to your insurance provider or consult with a professional to review and adjust your coverage as needed. Protect your future by staying ahead today.
5 Essential Tips for Homeowners When Reviewing Their Insurance
Evaluate Replacement Costs: Ensure your insurance policy covers the full replacement cost of your home. Construction costs and property values can change rapidly, so reassess your coverage limits to avoid being underinsured. Consider getting a professional appraisal to determine accurate replacement costs.
Review Natural Disaster Coverage: New Zealand is prone to earthquakes, floods, and other natural disasters. Verify that your policy includes adequate coverage for these events. Check the specifics of your earthquake insurance and understand any exclusions or limitations related to natural disasters.
Update Your Contents Insurance: Regularly update the inventory of your home's contents and their values. High-value items like electronics, jewelry, and artwork may need additional coverage. Document your belongings with photos or videos to streamline the claims process if needed.
Consider Liability Protection: Ensure your policy includes sufficient personal liability coverage. This protects you in case someone is injured on your property or if you accidentally cause damage to someone else's property. Assess the coverage limits and consider an umbrella policy for additional protection.
Understand Policy Terms and Conditions: Take the time to read and understand the terms and conditions of your insurance policy. Be aware of deductibles, exclusions, and claim procedures. Ask your insurer to clarify any ambiguous points and ensure you know what is and isn't covered.
Regularly reviewing and updating your home insurance policy ensures you are adequately protected against unforeseen events and helps you avoid financial setbacks. Stay informed and proactive to safeguard your home and assets.
Dunedin Market Report - February 2024
The Dunedin median price for February was $590,000, up from $575,000 in February 2023, consistent with the last 12 months of results. It appears that our predictions that Dunedin has found its new normal seem well founded, at least for now until we see any significant reductions in mortgage interest rates.
The Dunedin median price for February was $590,000, up from $575,000 in February 2023, consistent with the last 12 months of results. It appears that our predictions that Dunedin has found its new normal seem well founded, at least for now until we see any significant reductions in mortgage interest rates
A positive for sellers was the median number of days on the market at 39 which is 23 days fewer than last February. If you’re currently for sale and taking much longer than this to sell, it may be time to revisit your asking price expectations, presentation or investment in marketing. There’s little point staying on the market and helping other homes around you sell.
Despite the large number of available homes for buyers to choose from (677 at this time) the median days and the number sold in February prove that buyers will act if they see value. There were 186 sales. A substantial increase of 39.8% compared to February 2023.
There are looming changes to government policy, but also reserve bank lending policy, and it will be interesting to see what affect these have on our market. In many ways they may balance each other out. The reintroduction of interest tax deductibility will help some investors, while the change to a 2 year bright line will ease some concerns over investment.
However, introducing debt to income ratios of 6 x income for owner-occupier lending and 7 x income for investment lending (with an exclusion for new homes) will no doubt affect the borrowing capacity of many smaller investors.
Our advice for buyers, act now. You have a great selection to choose from and prices seem unlikely to come down. Our advice for sellers, make sure your home is well presented and priced correctly so you can move on with your future plans while the market remains stable.
Dunedin Stats Graph median and volume of sales. Source REINZ
Dunedin Market Report - December 2023
There continues to be good activity from first-home buyers which makes sense as they are still not competing with large numbers of investor buyers.
The stats are out for December 2023 and it’s interesting to observe some changes post-election. The median value rose from $597,000 the month previous to $613,000. The median days to sell dropped slightly from 34 to 31, and there were 167 sales for the month compared to 133 for the same month in 2022. These results may be a reflection of what agents are seeing at the coal face, and that is a rise in positivity.
There continues to be good activity from first-home buyers which makes sense as they are still not competing with large numbers of investor buyers. This must just be a matter of time surely, as the new government has flagged April 1st this year to re-introduce some tax deductibility from interest rates, albeit at 60% to begin with and slowly heading back to 100% tax deductibility by 2026. The other significant change is the return to a 2-year Brightline period for all properties rather than the current 5 years for new builds and 10 years for existing homes.
A few investors have popped out of the woodwork recently and chosen to buy now ahead of those changes while prices remain stable. But mortgage brokers report large numbers doing their figures and getting ready to buy. If we see any further increase in median values they may choose to move sooner rather than later so we urge first-home buyers to get into the market now. It remains a great time to upgrade your existing home.
It’s a bit early to say whether this increase is the start of a trend, but there’s no doubt in our minds that the bottom of the market has come and gone. Prices may remain stable for some time as Dunedin historically has done in the past, but we look forward to reporting in the next few months.