Big quake would double house insurance costs in Wellington

Big quake would double house insurance costs in Wellington | Insurance Business

Big quake would double house insurance costs in Wellington
A new report has predicted that a huge quake in Wellington would result in a massive rise in the cost of house insurance and a huge hit on the capital’s economy.

The aftermath of the November 2016 Kaikoura quake has already struck Wellington with $30 million in losses, with the capital estimated to be losing $1.25 million more every week due to businesses still being unable to resume normal operations.

The report, by financial services company Deloitte and structural engineering firm Miyamoto, found that a similar earthquake to the 2011 Canterbury quake would devastate Wellington’s economy, costing it more than $25 billion in earnings over 13 years, Radio New Zealand reported.

The report, which assessed Wellington’s response to the Kaikoura quake, highlighted the many shortcomings of the city’s quake response, including an inefficient approach to building repairs, a shortage of engineers, and a stormy emergency relationship between the central and local government.

The report also predicted that a large quake would prompt the costs of house insurance to double, as well as lead to a 9% rise in unemployment in the two years following the event.

In conclusion, the report said central and local governments needed to figure out how they can improve their partnership in post-emergency situations, and identified a need for Wellington to invest substantially in improving emergency transport lifelines.


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