Following the Government’s announcement of a Land Categorisation framework for the three regions impacted by the North Island flooding and Cyclone Gabrielle earlier this year, IAG has been working through the implications for its customers.
“We understand this is an uncertain time for those with affected properties,” says Wayne Tippet, Executive General Manager, Events Response.
“We know our customers are concerned about how the categorisation of their property may affect their existing claim or their insurance cover.
“We have moved as quickly as possible to clarify our position, so that our customers can make informed decisions.”
IAG is currently contacting customers in impacted regions who have made a claim, to let them know how the Government Land Categorisation may affect their ongoing insurance cover, as a result of the highlighted risk of flooding or landslip to their property.
Once the categories have been confirmed, IAG will work with customers on a case-by-case basis to discuss their insurance options.
“Please note – AMI, State and NZI customers do not need to contact us – we will contact them to discuss their individual needs.”
Weather-related claims will continue to be progressed for customers as per usual.
The local councils in each area; Te-Matau-a-Māui Hawke’s Bay, Tūranga-nui-a-Kiwa Gisborne, and Tāmaki Makaurau Auckland, are at different stages of consultation and confirmation of land categories, however, customers whose land is considered to be high risk for future flooding or landslip damage and no longer thought to be safe for residential homes – ie Category 3, will receive a voluntary property purchase offer from their local council.
IAG has made the decision not to offer ongoing insurance for properties in Category 3. Councils have identified Category 3 properties as being at high risk of damage from future weather events and so those residents are being encouraged through this categorisation process to reside elsewhere.
“We want to reassure these customers that cover won’t be cancelled immediately and that we will continue to provide cover until the voluntary sale of the property to the local council is completed, or when the offer expires or is rejected.”
Homes that are a total loss will have cover cancelled as part of the usual claims settlement.
“Customers with properties confirmed in Category 2P or 2C – managed risk, may see changes to their insurance to reflect the risk of damage from future severe weather events, including to the premium and excess. Any changes will be made at the policy’s next renewal and are part of our normal process to evaluate the risk, then determine the terms and conditions for any insurance cover provided, as we do throughout New Zealand.
“While insurance cover for properties in Category 1 won’t change based solely on the category, we will still consider the flood risk and landslip hazards of the property that could impact the premium and the excess. Again, this is part of our normal process to evaluate the ongoing risk of providing insurance.”