Insurer Vero caps repair costs at $2K per square metres; introduces excess on pools, spas, garden walls and tennis courts etc to $10K in the event of more damage

Home insurance costs in Christchurch, for those lucky enough to get insurance, are set to become even pricier and particular.

Effective next Tuesday, November 1, policy holders with Vero, will face an additional NZ$10,000 excess for future claims for damage on swimming pools, spas, pipes, cables, garden walls and tennis court and other outdoor features not covered by the Earthquake Commission (EQC). (See Janine Starks column here for detail on EQC cover for retaining walls).

The insurer will also be capping rebuild costs on damaged homes at NZ$2,000 per square metre on so called no sum policies.

A spokesperson for Vero said the policy changes will take effect upon renewal. Customers will have the choice of switching to a "sum specified "plan or accepting the NZ$2,000 per square metre capped rate, which includes fees, costs and GST.

Vero is also dropping its policy of automatic reinstatement of cover in the event where a loss or damage is caused by an earthquake, floor or tsunami as well as raising home content cover by 15%.

The policy changes will apply only to Christchurch residents. (See details on Vero website here).

AA Insurance, which like Vero is part of SunCorp Group, said it has no plans to follow suit however the insurer previously announced premiums on house cover would be increasing an average of 50% nation-wide.

Other insurers, including AMI, have also made similar pricing increases. Some are spreading the costs across all product lines, others are restricting post-quake increases to home cover.

The move by Vero comes on the heels of EQC's announcement that earthquake levies would be trebling to restock its depleted reserves. (See Alex Tarrant story here for more detail).