Commercial property owners around the country are facing not just higher insurance premiums following the Christchurch earthquakes, but also the prospect of much higher excesses.
The co-owner of Dunedin's historic BNZ Building says when he recently renewed his cover, the premium rose by some 70%.
His policy also includes a 10% excess based on the insured value of the building rather than on the value of a claim.
Insurance Brokers Association chief executive Gary Young says basing the excess on the insured value was previously quite unusual but most commercial policies are now heading that way.
He says it could mean significant increases in costs for property owners, especially for smaller claims.
