Fences , pools cop big insurance excesses

DEAN KOZANIC

EXPENSIVE BILL: Policy-holders with damage to a fenceline like this liquefaction damage in Queenspark Dr in Christchurchs eastern suburbs, could be liable to an excess of up to $10,000 in Christchurch.

Insurers are imposing tough new $5000 excesses for some structures on residential properties which will save them millions of dollars in the next big natural disaster.

It will mean homeowners will be paying a large chunk of the cost to fix damage to their driveways, paths, fences and swimming pools caused by an earthquake, tsunami, flood or storm.

It is all part of the huge shake-up in residential insurance policies after the Canterbury earthquakes.

The changes, which are being imposed in insurance policies now as they are renewed and for new customers, are pushing risk back on to homeowners.

Insurers want to be rid of the smaller claims to fences, paths, driveways and swimming pools in natural disasters.

The $5000 excess is being introduced throughout New Zealand and only applies in a natural disaster.

However, one insurer, Vero, has singled out Christchurch and has a higher $10,000 excess on the cover for fences, paths, driveways and swimming pools.

Vero introduced the $10,000 excess in late 2011 and is now bringing in the $5000 excess for the rest of New Zealand.

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Fences , pools cop big insurance excesses