The insurance world keeps changing – Rothbury Brokers have got your back!

In the last year, we’ve seen claims being impacted by Covid-19, a rise in construction costs and climate change intensifying. Our insurance solutions continue to reflect these changing risks.

Supply chain issues

Many industries are continuing to be impacted by supply chain and freight issues due to shortages and delays in shipping capacity. This means we’re experiencing delays and longer lead times when it comes to receiving goods sourced from overseas, such as specialised building materials and new motor vehicles, as well as extended time periods for repair work to be carried out.

If you are waiting for a replacement item or repair work to be done following a claim, please contact your local Claims Adviser or Broker and we can discuss other options and additional loss of use cover that may be available to you.

Rising construction costs

Accelerated by the stress on supply chains and material shortages, the construction industry has been experiencing a steady rise in building material costs over the past year. Builders are often having to pass these increased costs on to the consumer. CoreLogic’s Cordell Housing Index Price reported that residential construction costs surged 2.2% in the three months to June 2021 and the annual growth rose to 4.5%.

Talk to us about having the right home insurance cover in place, whereby your sum insured amount reflects these rising construction costs. Your sum insured is based on the cost estimate to fully rebuild your home in case of total loss following a natural disaster, not the market value of your home.

Climate change intensifying

Climate change has become a top priority for governments and insurers all around the world. The New Zealand Ministry for the Environment reported that the accumulation of greenhouse gases in the atmosphere is projected to have increasing effects on New Zealand’s climate and extreme rainfall events are projected to become more frequent. Extreme rainfall can result in flooding that damage homes and property.

Whether you’re a sole trader or operate a small and medium-sized business, you may not have the capital necessary to absorb the significant costs imposed if a natural disaster occurs and your business operations are temporarily halted. Insurance is one way to help minimise these risks.

Material Damage policies can provide cover for physical loss to your building and a business interruption policy will cover you for loss of revenue and profits. It’s important to ensure the sums insured amount is going to be adequate to get your business back up and running.

The Westport flooding in July is a timely example about the value of insurance when a natural disaster occurs.

“The value of insurance is powerfully demonstrated with the support provided to Westport customers, where we have seen insurers meet over $85 million of losses in a town with a population of about 4,000”. Tim Grafton, Chief Executive of the Insurance Council of New Zealand.

Helping you get back on your feet and recover from a loss is our priority.