One-third of New Zealanders think home and contents insurance is a luxury, according to a study by research group Canstar.

Women are more inclined to hold this opinion, with 39% calling their policy an extravagance. Only 26% of men share this belief.

But Insurance Council of New Zealand CEO Tim Grafton says that despite the findings, the country has a high level of insurance penetration.

“We have about 99% of homes insured and more than 80% of people take out contents insurance,” he told insuranceNEWS.com.au.

“That would suggest it is seen as a necessity rather than a luxury.”

More than half the 2500 respondents have made a claim in the past year, while 87% believe their cover is up to date.

Most (81%) say they get good service from their insurer, but 60% think they are paying too much.

Just 6% of respondents admit having exaggerated a home and contents claim.

The survey also compares customer satisfaction among brands. AA Insurance rates best, earning five stars, followed by Westpac, BNZ and AMI with four, and State, Vero and Tower with three.

Mr Grafton concedes a sharp rise in premiums following global catastrophes including the Canterbury earthquakes is causing concern, and may be the source of the “luxury” comments.

But he says the consequences of not insuring your home “can be catastrophic”.

“We had a major slip on a hillside in Wellington last weekend,” he said. “One owner lost his property and hadn’t got around to taking out insurance.

“He had previously been living in Christchurch, so you would have thought he would have made it a priority. The message is, get insurance.”