NZ insurers have been slammed for trying to “protect their customers” after several in earthquake-ravaged Christchurch and the surrounding Canterbury region received full-price premium renewals for their damaged homes.

Media reports said a number of people were shocked and upset to discover they had been charged the full price while their homes where unliveable or earmarked for demolition.

Insurance Council of New Zealand CEO Chris Ryan told insuranceNEWS.com.au there have been fewer than 100 complaints out of more than 150,000 claims.

He says the premium issue has only happened in cases where the premium has been up for renewal and in most cases it’s normal to pay the full amount as there could still be risk associated with the property.

“There is risk of fire destroying what remains on the property or spreading to a neighbouring property,” he said. “A lot of it is about liability, and people also need to remain insured to protect from future earthquakes.

“There are still risks even if [a property] isn’t liveable or has been destroyed.”

Mr Ryan says some insurers have now addressed the issue by offering customers a discount once a new property valuation has been undertaken or by giving a partial refund later in the year when the cost of repairs is established.