Homeowners are being warned their insurance policies may not cover the full cost of rebuilding their homes in future if they're hit by a disaster.
The insurance industry is signalling a move to fixed-cover policies, with future cover likely to be based on Government valuations, Radio New Zealand reports.
Insurance Council chief executive Chris Ryan told Morning Report the changes could become common as policies come up for renewal in the next 12 to 24 months.
"Essentially people will be required to insure for a specific sum, similar to a car, when you have a fixed value of a motorcar you can ensure it for that.
"It's not due to a lack of availability of insurance, it's more reinsurers are asking for more clarity and specifics about what is being insured and how much it will be worth."