Westpac has broken Christchurch's insurance deadlock with
policies for new construction and full replacement home and
The lack of available insurance has left hundreds in limbo and
unable to get on with rebuilding their lives after the
earthquakes. To overcome that, Westpac and partner, Lumley
lnsurance, has secured international reinsurance backing.
Westpac hopes, by being the first major financial institution
in New Zealand to do so, it will help open up the
Westpac Managing Director Private, Wealth and lnsurance, Simon
Power, said customer feedback was the driver in persevering to
put the 'canterbury New Build pac' together.
"We have listened to the frustration and anguish many of our
customers have experienced through the lack of available
insurance to build a new home and have been determined to
find a practical solution," Mr Power said,
"Now, not only do we hope this helps people move on but it also
goes some way to opening up the market.
"Dealing with the issues that have arisen from the earthquakes
has required thinking outside the square and what we've done
here is create an end to end solution so people can get out
of no man's land and get on with their lives with
The 'Canterbury New Build Pac'combines a Westpac Home
Loan, transactional account and Contract works and Home cover
and is for new and existing Westpac customers who are ready to
start on residential builds or purchase new residential
builds in Canterbury, and have all appropriate consents but
have not progressed due to being unable to secure insurance
Contract works cover, which is included in the Pac, is for a
maximum period of 12 months and includes protection from
natural disasters and earthquakes.
Home cover will be on a 'sum ínsured' basis meaning
customers insure for full replacement, up to the specified value.
Sum insured is common overseas and is expected to become the
norm here after the earthquakes changed the country's risk
profile in the reinsurance market.