BUILDING INSURANCE ON THE RISE

 

According to figures presented to the Annual Property Council conference in Sydney, insurance premiums for commercial buildings are expected to rise from 50% to 70% in Auckland, 100% in Wellington and 300% to 400% in Christchurch. Arrow International strategic and development manager Malcolm Powell confirmed that builders risk in Christchurch had risen 5% to 10%, meaning construction firms in a $10million build would be exposed to $1million excess if anything was to go wrong. Higher design standards are transforming sectors of the Wellington property market, where revaluations of at-risk buildings was making owners question if they were worth strengthening. Building owners are being warned to check fine print exclusions in insurance policies.

Source: The National Business Review, 26 August 2011 (BL)

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