With heavy rain and storm activity receding across the capital and parts of the South Island, the insurance industry is urging residents to begin the clean-up process where conditions are safe and to engage with their insurers as soon as possible.
The Insurance Council of New Zealand (ICNZ) has advised those impacted to take practical steps to mitigate additional loss, even before a formal insurance claim is filed – provided it can be done without risk.
Kris Faafoi, chief executive of ICNZ, said that insurers are aware not everyone can file a claim immediately after an event, but early action to prevent further damage is encouraged.
“While you should contact your insurer as soon as possible, don’t wait to take steps to reduce further damage and begin recovery if it’s safe to do so,” he said.
To assist with recovery efforts, ICNZ provided a checklist of recommended actions – something brokers could share with their clients who took a hit from the recent extreme weather events:
Faafoi said that homeowners displaced by the storm may be entitled to temporary accommodation under certain policies. Insurers can also coordinate with the Natural Hazards Commission (NHC) through NHCover, which provides coverage for land and some other types of natural disaster-related losses.
“Your insurer will also be the main point of contact for all claims, including those under NHCover, which they manage on behalf of the Natural Hazards Commission,” he said. “If your property has been affected, let your insurer know. They can help organise assessments for both your home and any damaged land.”
In light of recent extreme weather events and a rise in policyholder confusion, insurance intermediaries are being asked to reinforce guidance on the claims process and policy coverage.
The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) released a new advisory aimed at brokers and insurers, citing a growing number of complaints from policyholders following storms and floods in various parts of the country, including Wellington and the South Island.
Karen Stevens, the scheme’s ombudsman, emphasised that the first steps taken after a weather-related incident can be critical in determining whether a claim is accepted or declined.
“The first thing to remember is to only start dealing with the clean up when it’s safe to do so. Then, when it’s safe, make sure you document everything before starting on the clean-up. Take photos or videos of the damage and make a detailed list of affected items. Without proof – like photos or receipts – insurers can decline claims. A list on its own often won’t be enough,” she said.
Stevens warned against prematurely discarding damaged items such as carpets and furniture without insurer approval. She added that while it is generally acceptable to perform emergency repairs to prevent further damage, policyholders should seek guidance on what constitutes essential repairs.
She also urged brokers to regularly review policy terms with clients. Homeowners should be made aware of whether they are insured on a replacement or fixed sum basis, and whether their contents cover reflects replacement value or depreciated value.
Motor policies also require clarification, Stevens said, particularly around differences between agreed and market value.
Alongside the operational response, new research suggests a growing number of New Zealanders are concerned about the country’s exposure to natural hazards, particularly flooding and storms.
Findings from the latest Wild Weather Tracker, released by AMI, State, and NZI, indicated that more than 50% of respondents reported anxiety related to storm conditions and heavy rainfall. Earthquake risk was also high on the list of concerns, noted by half of the survey participants.
A parallel study commissioned by the Natural Hazards Commission Toka Tū Ake and conducted by NielsenIQ found that 71% of surveyed homeowners had taken steps to better protect their homes from future events. This represents the highest level of proactive risk management reported to date and marks a significant increase from the previous year.
