New Zealand's Natural Hazards Commission Toka Tu Ake (NHC) has reminded country's homeowners that the national natural hazards insurance scheme offers only partial coverage for land damage, not full protection.
NHC chief executive Tina Mitchelle said, “A recent survey indicates that more than half (56%) of insured New Zealand homeowners say they expect full insurance compensation for natural hazard damage to their land. The Natural Hazards Commission Toka Tu Ake (NHC) is therefore urging people to understand the limits to their cover to avoid disappointment.”
According to the NHC media release New Zealand’s national scheme provides cover for damage to houses up to NZ$300,000 and provides some limited cover for damage to land. Both are set by clear limits in legislation and the contribution for land cover is standalone - you can’t top it up with private insurance.
Ms Mitchelle said, “Land cover is specifically designed as a contribution payment, not full cover. The limits of cover available ensures every homeowner across the country gets access to some protection and helps keep the scheme affordable as it is funded by homeowners.
She said, “We know damage from landslides or other hazards can be expensive to remediate, and sometimes there is a difference between the cost to repair, and the contribution allowed for under the scheme. We want people to know this in advance, so they understand the limits of their cover before a disaster occurs.”
NHC chief said as the land cover is limited, the homeowners can take action. She said NHC We recommends learning about the risks to individual property and seeking expert advice from builders or engineers about how to protect land from damage. “The scheme is a good contribution, but it is not designed to cover all costs,” said Ms Mitchelle.
NHC provides a first layer of insurance for natural hazards damage to insured residential homes and some land. Additional cover for the house is then determined by private insurance policies, but there is no other cover available for land.
NHC has put out a list of four things the homeowners can do to be prepared for a natural hazard:
- Learn about the risks to the property, and how the land around might be affected.
- Check the limits of cover for the house and land
- Reduce the risk by seeking expert advice from builders, engineers, or NHC
- Plan for how to manage after an event - insurance claims and rebuilding takes time.