A tornado which hit the South Island town of Greymouth on New Zealand’s west coast last week is estimated to have caused as much as $10 million in insured damages.

The Insurance Council of New Zealand (ICNZ) says the tornado affected 50 commercial buildings, 14 houses and 100 vehicles.

ICNZ CEO Chris Ryan says the tornado moved in from the sea and cut its way through the town before moving up into the hills.

He told Sunrise Exchange News ICNZ received reports there may have been a smaller tornado the previous day, indicating the conditions for the creation of tornados have been in place for some time.

“Insurers have rushed extra staff into the region and assessors are already visiting many of the damaged homes,” he said. “Most claims have now been received, many have already been accepted and some payments have already been made.

“All legitimate claims will be paid as quickly as possible.”

Mr Ryan says if the claims exceeded $10 million, “it would be a very significant event in a community as small as Greymouth”. He says the big challenge now will be accessing tradespeople and people with enough skills to rebuild the town. “Insurance staff will assist where possible in this area.”

The industry is getting worried about the number of volatile storms which have hit areas of New Zealand over the past year. “2004 was expensive because of volatile weather, and 2005 is looking to be similar,” he said.

Last year ICNZ members paid out $121 million for the Manawatu-Wanganui floods and a further $20 million for the Whakatane-Bay of Plenty floods.