19 Aug 2014

Consumer NZ criticises insurance firms

9:08 pm on 19 August 2014

Consumer New Zealand says insurance companies are failing to make sure properties are sufficiently insured.

Research just released by the consumer advocate organisation shows the companies are often underestimating how much it will cost to replace a customer's home.

Consumer New Zealand chief executive, Sue Chetwin said the companies should do more to safeguard people from being underinsured, otherwise homeowners were at risk of not being paid the full cost of replacing their homes after a natural disaster.

She said if the insurance companies themselves didn't take action, the Government should step in and regulate the sector.