The home insurance cost in New Zealand is not expected to change due to a new government support package for homeowners. The New Zealand government announced the package for home owners who had been affected by the recent earthquakes in Christchurch.
The reason that Standard & Poor's expects the impact of the package to be limited is because the estimated costs to the New Zealand government of purchasing around 5,000 damaged properties will be met with funds from a special earthquake recovery fund. The package will help affected borrowers, so it's also positive for financial institutions as it limits the impact of declining property values in the Christchurch area. The affect is close to neutral for insurers, as the government assistance doesn't change the existing ability of policyholders file claims on their policies.