Home-owners are facing a crackdown over meth-related insurance claims as insurers raise premiums and excess levels and cap how much people can claim.
IAG, which owns the brands NZI, AMI and State Insurance, has told its customers they will have to pay a higher excess for meth-related claims and they won’t be able to claim for contamination of contents.
All its home-owner policies – not just those for rental property owners – will be affected by the change, which will increase the current standard excess from $400 to $2500 for meth claims.
In a statement IAG said; “This is to ensure homeowners are incentivised to make efforts to minimise losses by doing what they can to protect their homes.”
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On top of the excess increase, rental home owners will also face an increase in their annual premiums of between $40 and $130.
“As the majority of contamination claims to date involve rental properties, and claim numbers and overall claims costs involving methamphetamine contamination have increased in recent years, premiums across landlord policies will see some increases directly related to the cost of these claims and the changes to levels of cover.”
The insurer has also said it will not accept claims for contents contamination.
“Claims will not be accepted for contamination to contents in homes, as it is too difficult to determine the timing and nature of any event causing contamination.”
IAG said across its brands it had received an average of 60 meth-related claims per month for the last year.
Claims had cost the company $14 million in the last year.