7 Apr 2011

'Little option' for alternative Christchurch cover

4:26 pm on 7 April 2011

Consumer New Zealand is advising Christchurch AMI policy holders not to panic about trying to find alternative insurance cover.

The Government is providing AMI Insurance with a back-up financial support package of up to $500 million in case the company does not have enough money to cover all the Christchurch earthquake claims.

Consumer chief executive Sue Chetwin says there is very little policyholders can do in any case, as insurance companies have already indicated they are not writing new policies for people in the Canterbury region.

Consumer says now is a good opportunity for AMI policyholders outside of Christchurch to start thinking about coverage with other insurers.

Ms Chetwin says policyholders need to think about the fact that the Government has taken action because the company is "heading into stormy waters".