Economy Made Simple #19 | Can you still afford to insure your home?

In this episode of Economy Made Simple, Chief Economist Shamubeel Eaqub unpacks why insurance has become one of the fastest-rising costs in NZ, and what that means for the assets we most need to protect.

Insuring everything you own would now swallow close to 15% of the average income, and with disasters growing more frequent, Shamubeel argues the days of leaning on a government bailout may be numbered. He explains how to keep meaningful cover as premiums climb.

This episode covers:

• Why insuring everything could now cost close to 15% of your income
• How and why home insurance has risen  over the last 20 years
• The disasters that made reinsurers decide NZ is riskier than they thought
• The rise in natural disaster costs as a percentage of total GDP
• Why the government backstop we've been seeing come into play after floods and cyclones may not last
• Which types of cover people tend to drop first when money is tight
• Three practical ways to keep insurance affordable without losing protection
• How auto-renewing your policy could be quietly costing you

By the end of this episode, you'll understand why insurance costs keep climbing, and three practical moves to keep the cover you actually need: knowing your sum insured, adjusting your excess, and shopping around every year.

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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.