About 8% of New Zealand homeowners have let their house insurance policies lapse due to high costs, while 18% with contents cover did not renew or cancelled it, a survey by Consumer NZ has found.

The cost of house insurance in New Zealand has doubled in a decade, while contents cover is up 48%. Compared with a year ago, cover for a standard house in Wellington is up 29%, and Auckland is up 26%.

“That upward trend doesn’t look like it’s going to stop any time soon,” Consumer NZ said.

Investigative Team Leader Rebecca Styles says reinsurance costs, extreme weather and increased use of risk-based pricing on individual properties have pushed up premiums.

New Zealanders should review their levels of cover and shop around, she says.

“It’s likely you’ll find a better deal and can maintain some level of protection, which is better than no cover at all. Switch when you find a cheaper policy – they are out there.”

Opting for a larger excess could help with affordability, and Ms Styles recommends insureds reassess their needs: for example, considering a fire-only or fire and burglary policy.

“It will be cheaper than comprehensive or ‘all-risk’ cover and, crucially, mean you’re still entitled to EQCover in the event of a natural disaster,” she said.

Some insurers offer discounts for combined house and contents policies, or for being claim-free for a certain number of years, having an alarm or paying premiums for the year ahead.

More than 60% of insurance satisfaction survey respondents are concerned about the cost of covering their homes, and 52% are worried about the cost of contents insurance.

The median premium for a standard house in Wellington is $NZ3733 ($3502), while a large house comes in at $NZ5088 ($4773). Some insurers require a risk assessment before quoting or finalising cover.

“The extra hassle of getting a risk assessment is likely to mean households won’t shop around for a better insurance deal, which risks limiting competition in some regions,” Consumer NZ said.