A Rotorua family has been forced to evacuate their home after a mudpool exploded out of their backyard.
The steaming mudpool has grown in size again since it opened up on June 25, TVNZ reported. Rotorua Lakes Council told the publication it is working with the owner to further secure the property. However, it did not have further information for the owner – including information on whether the property will need to be demolished or not.
Meanwhile, Insurance Council of New Zealand (ICNZ) chief executive Tim Grafton highlighted that geothermal activity is an event covered by the Earthquake Commission (EQC). On July 01, that cap is increasing to $150,000 + GST when the claimant’s insurance policy renews. If the damage exceeds the cap, the homeowner’s private insurance policy will pay the balance up to the sum insured.
Read more: Kiwis can expect more premium increases in high-risk areas
“If a landlord has their house insured, then they will be covered the same as someone in an insured, owner-occupied property,” Grafton told 1 NEWS. “The specific details of sub-limits for certain types of damage may vary between different policies but, by and large, people with house insurance will be covered for natural disaster damage to their house.”
Grafton added the landlord would need to speak to their insurer or a broker to see if they are also covered by loss of rent in the case that their renters have to move out.
