IAG unveils drug contamination changes

IAG unveils drug contamination changes | Insurance Business

IAG unveils drug contamination changes
IAG has announced changes to its home and landlord policies to try and clear up confusion around methamphetamine contamination.

The insurer will change policy wordings over the course of the year to ensure that there is greater consistency and clarity around levels of cover available and responsibility.

IAG will extend cover to all homeowner insurance policies, including landlord policies, with claim acceptance based on presence of contamination rather than cause. The maximum claimable amount will be raised to $30,000 but IAG will also increase excesses for meth contamination claims from $400 to $2,500.

The insurer will also raise premiums on landlord policies as claims costs in rental properties involving meth have increased in recent years.

The insurer said that premium increases will depend on policy and will range from between $40 and $130 per annum.

Over the last 12 months, IAG’s claims costs for meth contamination stand at around $14 million.

Want the latest insurance industry news first? Sign up for our completely free newsletter service now.

Craig Dowling, IAG’s New Zealand head of corporate affairs, said that as a relatively new issue, meth contamination has led to various different policy wordings that have an impact on claims.

“As a result we are aligning terms across our brands over time and seeking to communicate clearly what expectations customers can have of us, and what we have of them as homeowners,” Dowling said.

The insurer has also released a home insurance guide on meth contamination to try and help clear up confusion for landlords and homeowners around potential insurance impacts.

The guide has been made available as an e-book and will be distributed by the AMI brand, and to brokers within NZI’s network.


Related stories:
Insurer IAG claims social media first for NZ
IAG announces profit dip