There’s a major weather event forecast for tomorrow, can I insure tonight?
Probably not. If your property is uninsured and a major weather event such as a cyclone is already approaching, it’s unlikely you’ll be able to take out insurance cover for that event.
Key takeaways
- If your property is uninsured and a cyclone or other major weather event is already approaching, it’s unlikely you’ll be able to take out cover for that event.
- Insurance works by spreading the cost of losses across many people over time.
- Allowing people to take out insurance only when there is a high chance of an imminent loss would put more pressure on the wider insurance pool and affect pricing.
- Insurance costs can increase for reasons including more expensive repairs and more people needing help.
- Letting your insurance lapse can leave you without cover when a major disaster or loss occurs.
- The article recommends keeping insurance in place without breaks so cover is there when it’s needed.
- If you’re unsure what’s covered, you should check your policy documents or contact initio for help.
Why can’t I get insurance when a major storm is approaching?
Think of insurance like a safety net for your property. If everyone only got this safety net when they saw trouble coming, like a big storm, it wouldn’t be fair. This is because insurance works by spreading out the cost among lots of people, over time. If some people only pay in when they think they’ll need help soon, it puts more pressure on everyone else. We figure out what to charge for insurance based on how likely it is something might go wrong. If people could only get insurance when there’s a high chance of trouble, it would change how much we’d have to charge, affecting everyone.
Why is it important to keep your house insurance active?
We know insurance costs can go up, and there are many reasons for this, like more expensive repairs or more people needing help. This can understandably influence you into letting your cover lapse. We don’t recommend this approach as we want to be there for you in the event of a major disaster or loss. We’re working hard to make sure you still get good value and support from us and have cover when you need it.
Clearing up myths about claims
Some people think they won’t get paid when they need to make a claim, but that’s not true. We’re here to support you and have paid out a lot of claims this year. If you are unsure of what’s covered or you need any specific advice around an area of concern please check your policy documents for details and reach out to our team for assistance if needed.
To wrap up, it’s really important to keep your insurance going without breaks. It ensures your peace of mind and provides support for you and others, especially when facing significant events. If you have questions or need help with your insurance, feel free to get in touch with us at initio.
Frequently asked questions
Why can’t I take out insurance when a major storm is approaching?
Insurance works by spreading the cost of losses across lots of people over time. If people only took out insurance when there was a high chance of something going wrong, it would put more pressure on everyone else and affect how insurance is priced.
Why is it important to keep my house insurance active?
Keeping your insurance going without breaks means you have cover in place when you need it, including when significant events occur.
How do I check whether I’m covered for storm damage?
Check your policy documents for details about your cover. If you’re unsure or need advice about a specific concern, you can contact initio for help.
Other articles of interest
Other resources
- GENERAL: Civil Defence
- FLOODING: Civil defence – flooding factsheet
- EARTHQUAKES: Geonet | NHC