A Christchurch resident's insurance dilemma sparks a heated debate! Trevor Taylor, a local man, is in a battle with Tower Insurance over a drastic premium hike, leaving him questioning the validity of their risk assessment.
The issue? Tower's new risk pricing model has increased Taylor's home insurance premiums by a staggering 30% annually, amounting to an extra $1000. The reason? A perceived risk of sea surge, landslips, earthquakes, and flooding.
But here's the twist: Taylor's home is several kilometers inland, and he strongly disputes the sea surge assessment. He challenged Tower, but they stood firm. Taylor requested the evidence behind their assessment, but Tower refused to disclose specific details, citing commercial sensitivity.
And this is where it gets controversial. Taylor, unconvinced, conducted his own research, which contradicted Tower's findings. He argues that the chance of a sea surge reaching his home is almost non-existent, given the unlikely path the water would need to take.
Taylor's research revealed that the sea surge would have to travel up an estuary, burst through stop banks, and flow uphill past numerous houses before reaching his property. He believes Tower is exaggerating the risk, especially considering the Ministry of Environment's data on storm surges rarely exceeding 0.6 meters on open coasts in New Zealand.
Despite Taylor's Privacy Act request for all information related to his property, Tower refused, claiming commercial sensitivity. Taylor feels there's a disconnect between various agencies, making it challenging to obtain consistent data for risk assessment.
Taylor suggests that while risk-based pricing is fair, he believes Tower is inflating the risks. He proposes that a government body should investigate insurance companies' risk assessments when policyholders have concerns.
Tower, however, stands by its assessment, stating that the high-risk rating considers the potential for flooding from nearby water systems, including the Avon River, Travis Wetland Nature Heritage Park, and Horseshoe Lake. They argue that during a storm surge, water levels can rise, causing inland flooding.
Tower's statement reveals that only a small percentage of properties with higher risks will see an increase in premiums, with most increases being relatively minor. But for Taylor, the question remains: is Tower's assessment accurate, or is it a case of overestimation to justify higher premiums?
