Add insurance rider to that house deal - Mary Holm

I work for one of the major insurance companies in New Zealand, and I want to give your readers some good advice.

When arranging the contract to purchase your next house, it is a good idea to add the clause "subject to insurance", as well as the standard "subject to finance" clause.

Many people do not realise that insurance companies differ widely on their underwriting criteria (the information they need about the subject of insurance - in this case a house - in order to make a decision.

Depending on the location, age, present condition, construction materials and method, local weather and any council imposed notices - particularly a Section 36 note relating to landslides - insurance companies can decline to insure, or offer less cover than you are seeking.

Quite often, we have to decline to insure a house because some aspect about it is too risky. This can be devastating to the buyers...

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