From Oct. 17, all councils in New Zealand are required to follow new regulations regarding the presentation of natural hazard information in Land Information Memoranda (LIMs).
The changes – introduced under the Local Government Official Information and Meetings Amendment Act – are intended to provide property buyers and owners with more consistent and accessible data on risks such as flooding, erosion, landslides, coastal inundation, sea level rise, and seismic activity.
The Insurance Council of New Zealand | Te Kāhui Inihua o Aotearoa (ICNZ) has welcomed the reforms, noting that the standardisation of hazard information will support more informed decision-making for both buyers and existing property owners.
According to ICNZ chief executive Kris Faafoi, providing property owners with straightforward and reliable details about natural hazard risks enables them to make informed decisions and take appropriate protective measures.
“Understanding your risk is the first step in managing it. These changes mean homeowners can better plan to strengthen, adapt, or insure their properties appropriately,” he said.
The updated requirements mean that all LIMs must now include a dedicated section summarising natural hazard risks, using plain language and standardised formats.
Councils are also obligated to incorporate relevant data from regional councils and central government agencies, ensuring that the information is as comprehensive as possible.
This includes not only property-specific hazards but also broader geographic risks, such as the presence of peat soils or the potential for liquefaction in certain areas.
Hamilton City Council, for example, has revised its LIM process to align with the new rules, and has begun notifying owners of properties with known land instability features.
Similarly, Horowhenua District Council chief executive Monique Davidson said the reforms allow councils to share a more complete picture of risk.
“The result is that property buyers can access reliable and easy-to-understand reports, helping them make well-informed decisions,” she said.
The insurance sector is closely watching how these changes may affect the market. Increased transparency around natural hazards could influence property values, lending decisions, and the availability or cost of insurance cover for certain locations.
While the reforms are designed to improve information flow and support risk mitigation, there is recognition that clearer disclosure may also highlight properties with higher exposure to climate and geological risks.
“Insurers support the government’s aim to improve how natural hazard information is shared, ensuring that everyone, from first-home buyers to long-term owners, has access to clear, consistent data that supports resilience and risk reduction,” Faafoi said.
The new regulations focus solely on information sharing and do not require property owners to take any specific action.
Councils are not expected to undertake additional modelling or research; rather, they are tasked with presenting existing data in a more accessible and standardised manner.
The intention is to ensure that buyers and owners have the information needed to understand and manage their exposure to natural hazards.
As the new LIM standards are implemented nationwide, the insurance industry and local authorities will continue to monitor their impact.
There is an expectation that the reforms will prompt ongoing discussion about insurability and long-term risk, particularly as climate-related hazards become more prominent in property assessments.
The sector anticipates further developments as stakeholders adjust to the new information environment and as insurers refine their approaches to risk assessment and pricing.
