Concern over insurance cover
Monday 31 May 2004
Many Taupo people could be putting their insurance cover at risk if they don't disclose that their properties overlie the Wairakei-Tauhara geothermal field.
By The LandlordThe information emerged at the Contact Energy hearing this week when a risk management consultant was giving evidence about insurance practices and how most policies specifically exclude land subsidence and any subsequent damage.
John Sloan, whose expertise includes consultancy for government departments, local authorities and private corporations, has been called by Taupo District Council to give evidence.
He told the hearing that, while there may be cover for sudden or unexpected events from geothermal activity or hydrothermal eruptions, there is virtually none for the long-term subsidence effects from geothermal extraction.
Last week a world expert in geothermal resource management warned that subsidence could be a possible consequence anywhere in the 80 square kilometres of land over the Wairakei-Tauhara field.
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Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.