IAG New Zealand is raising home insurance premiums for many North Island customers due to increased risks of earthquakes, floods and landslides.

Affected areas include parts of Whakatane District, Hawke’s Bay, Wairarapa and Greater Wellington in the North Island, and Marlborough, West Coast, Kaikoura, the Waimakariri District and Dunedin in the South Island.

Premiums in those areas are expected to rise by an average of $NZ91 ($83), while customers in other parts of the country will see premiums drop by an average of $NZ54 (49).

IAG New Zealand EGM Kevin Hughes says premiums for home insurance have not fully reflected the different risks in different regions.

New Zealand’s environmental risks have evolved in the past few years, he says.