Apartment owners in Wellington, New Zealand, have launched an advocacy group to tackle soaring insurance premiums in high-rise strata blocks.

The group, CoverWell, says premiums have increased about threefold in the past five years, with insurers and brokers forecasting future rises of 20% or more. Homeowners, including first-time apartment buyers and retirees, are paying thousands of dollars for their share of building insurance.

“We’ve had to start this initiative to find affordable insurance in Wellington,” founder Peter Dow said. “We feel we have no option but to do the research, start the discussions, and explore alternative options to empower owners. 

“Based on recent data, it is clear the issue is not limited to Wellington, but we will focus our initial efforts in the capital and apply nationally across New Zealand in due course.”

Rising premiums are not restricted to quake-prone or older buildings. “It is an issue facing all apartment buildings,” CoverWell said.

Discussions with representatives from the New Zealand and international insurance sectors have started, with the aim of building CoverWell’s understanding of the market. The talks will also enable insurers to understand the challenges facing the apartment sector, the group says.

“CoverWell is an advocate for affordable, fair and sustainable insurance solutions for apartment buildings in Wellington,” the group said. “With a focus on research, engagement and advocacy, CoverWell strives to keep stakeholders informed in order to address the unique insurance challenges faced by apartment owners.”