Natural Hazards Premium.

As a result there is now a Natural Hazards premium on insurance policies for residential land. This sits alongside the EQC levy and covers insurance properties for storm, flood and landslip damage up to (currently) $300,000. Claims are managed through your insurer.

Any claims can be denied (in whole or part) where a S72 notice (or its predecessors) is applied on the property. These are recorded by Council’s against the property’s record of title, and we understand will be triggered by building consents.

We can see the potential for these premiums to be paid on properties and the insurance claim denied. The insurer may not then pay out that part of the claim either – despite premiums being paid.

If you are in an area with a designated flood risk you may want to reconsider those alterations. This has the potential to get very messy.

Read more here:  https://www.naturalhazards.govt.nz/insuran…/about-nhcover/