People might have changes to their insurance due to their home's risk of natural disasters.

From July 1st, Insurance Australia Group will take greater account of earthquakes and severe-weather risks when calculating home and contents premiums.

AMI, NZI and State customers will be affected, as will people with through ASB, BNZ, The Co-Operative Bank and Westpac.

IAG spokesman Kevin Hughes told Mike Yardley that the changes will roll out nationwide.

He says that customers will be communicated with some time over the next 13 months as their contracts are renewed, and the increases and decrease's will be on a case by case basis.

"The reality is that you're north of the North Island, and if you're on the east coast of Gisborne down to Canterbury, you are likely to get an increase."

Hughes says that there will be a "real mix" of changes, and it may not be evenly split between increases and decreases.

He denies that they will be pulling in more money through this. 

"Our premium pool will generally be unchanged."

 

• NZ's largest insurer to charge more due to natural disaster risk