An agreement between the New Zealand Earthquake Commission (EQC) and private insurers that aims to improve handling of flood claims is being triggered for the first time following storms in the north of the country that have been described as the worst in living memory.

Insurance Council of New Zealand (ICNZ) CEO Tim Grafton says customers’ private insurers will be able to manage some claims for land damage on behalf of EQC under the new arrangements.

“We advise all homeowners if they have damage to their home and land to contact their insurer first,” he said today.

EQC Chief Readiness Officer Josh Lindsay says the EQC/Insurer Agreement for flood events has been in place since the end of March and manages flood damage from inundation of silt on insured land.

“EQC, ICNZ and other insurance partners agreed the new approach to manage the assessment of flood damage so that customers would have a single point of responsibility for the management of their claim, to ensure a more efficient response and remove unnecessary delays,” Mr Lindsay told insuranceNEWS.com.au.

The state-owned insurer covers storm and flood damage to residential land only, with home and contents damage covered by private insurance according to individual policies.

The storms in New Zealand’s Northland region on Friday and Saturday caused flooding and landslips which closed roads and caused extensive damage.

“We know a large number of people will be suffering badly whose businesses, properties, homes were affected by flooding and slips,” Whangarei District Council said on its website. “The flooding in Whangarei was the worst in living memory.”

The MetService said several rain gauges recorded more than 250mm in 24 hours, including more than 150mm of rain at Whangarei in just four hours.

Mr Grafton says under the new processes, policyholders need to sign an additional form to give the insurer authority to arrange for the removal of the silt and debris on behalf of EQC.

“If there is no damage to your property, but only damage to your land, your insurers will advise EQC, who will then settle the claim directly with you,” Mr Grafton said.