Insurance backlash in flood aftermath

Wednesday 4 August 2004

People buying property should make their offers subject to flood insurance cover being available, as well as finance, says the Insurance Council of New Zealand.

By The Landlord

While New Zealand companies have not yet removed cover from properties in flood-prone areas, the council's chief executive Chris Ryan warns that this could be a "real possibility" in future.

A string of major floods in New Zealand in the past five years has seen the insurance industry pay out damage claims of $300 million. And emergency managers and scientists are warning that climate change will cause more floods in the immediate future.

Manawatu is tipped to get 5 percent more rain in the next 50 years, with a possible increase in the frequency and severity of storms - just what happened in February.


The insurance council is signalling this could lead to some places in New Zealand not being insurable in future, because the flood risks are too great.

Read More - Opens in a new window
Commenting is closed

Property News

Why the future is not bleak for the housing market

Uncertainty continues to cast its shadow over the housing market but economist Tony Alexander has put together a list of reasons which offset the negatives and mean the market remains well-supported.

House Prices

S&P forecast 10% house price fall

Global ratings agency Standards & Poors is the latest to join the chorus of predictions around potential house price falls in New Zealand – and they’re picking a 10% drop.

Commercial

$75m on offer for new developments

Auckland ’s long-term future is sound as well situated residential developments will always sell and demand for affordable housing remains strong, a leading non-bank property financier says.

Mortgages

Advisers buoyed by strong property market

The New Zealand property market has emerged strongly out of lockdown, according to mortgage advisers, who say they are busy as ever this winter.

Site by PHP Developer