Kiwi insurer brings back full replacement

by Annette Whitfield 31 Oct 2014

Kiwi insurer brings back full replacement

Tower Insurance is bucking the industry trend of moving to sum insured since early 2013 by bringing back full replacement cover for New Zealand homes destroyed by fire.

CEO David Hancock said since fire was one of the main reasons for the total loss of a home they were pleased to introduce an improved level of cover for people’s biggest assets – their homes.

“Being able to provide full replacement for fire means one less worry for homeowners in the traumatic event of a fire,” he said.

“Tower can guarantee your home will be fully rebuilt if it’s destroyed by fire, regardless of the cost or the sum you’re insured for.”

Tower says it is the only major insurer focusing on all New Zealanders to offer any form of full replacement benefit since the industry move to sum insured in early 2013.

Fire is reported to be the most common reason for the total loss of a home, after natural disasters.

Hancock said the move came following feedback from customers who had struggled to grasp the concept of sum insured house insurance.

“Our customers have repeatedly told us that they find the concept of sum insured confusing and worry about whether they have the right insurance cover,” he said.

“People want to know that if the worst happened they can at least know that they will get their house back the way it was.”

Hancock said Tower would continue to partner with its international reinsurers to offer cover that meets customers’ needs but would like to see more options for how homeowners insure their home.

He added: “Tower is committed to doing the right thing for our customers, we’ve been in New Zealand for 140 years looking out for Kiwis and we’ll keep finding ways to help people when they need it most.”

Full replacement for fire applies to any new Tower house insurance policies purchased from 30 October 2014 as well as existing Tower house insurance policies.

The new benefit excludes older homes covered by a Present Day Value policy.
  • Martin 31/10/2014 12:20:46 p.m.
    Thank goodness one insurer has seen the light (well done Tower). Hope the others follow in quick succession!
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  • Perception 31/10/2014 12:26:27 p.m.
    Really ! Do peoples ability to think and understand the mechanics of an Insurance Policy change within 30-40 years.
    Maybe its more a question of the challenge of people just to think and surely our human abilities to think could not have changed over the past 30 years!
    Everyone was quite happy working with sum insured up until NZI had the same inspiration as Tower.
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