Continuing aftershocks in the Canterbury region are preventing insurers from taking on new risk and causing delays to rebuilding work.

The aftershocks and existing damage to land are complicating decisions that would allow clients to rebuild, and putting insurers in the firing line of consumers and builders who say they cannot get work.

Insurers continue to cover existing customers, including those who move to a new home, vehicle insurance is available again and the insurance embargo on regions around Christchurch is gradually shrinking.

Tower is offering cover to existing clients who have a property in the red zone, or a property outside it that has been determined as a total loss.

It will also cover them on a new home in the green zone subject to an engineering report.

A Tower spokesman told insuranceNEWS.com.au the company is also writing new business for motor and life and health, “and we are looking into covering contents”.

IAG NZ CEO Jacki Johnson says liquefaction has slowed the recovery, and surveys are needed to determine if large parts of the region are safe for rebuilding.

“It is not so much about the shaking, it is about the land and the ability of the land to have rebuilding on it,” she said.

“Once you understand the risk you can price for it.”

While this has mostly affected householders, demolition in the Christchurch CBD is slowed by ongoing tremors, when workers have to clear the area.

The Government has so far made 3000 offers to buy out households in red zones, where the land has been rated as not suitable for rebuilding. Land in the green zones is suitable for homes to be repaired or rebuilt.

Also see ANALYSIS