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NZ insurers in town flood-proofing call

Insurance cover for New Zealand homes will rise unless councils and the Government take steps to reduce the risk of flood, according to the Insurance Council of NZ (ICNZ).

Floods in the North Island last week have so far cost the insurance industry $10 million – part of the $32 million insurers have paid to policyholders so far this winter.

ICNZ CEO Chris Ryan says government authorities need to examine how flood risk can be mitigated in some low-lying flood-prone regions.

“It doesn’t mean towns have to be moved, but local authorities and the Government will have to carefully consider how they future-proof their communities,” he said.  

PM Helen Clark has already warned that climate change could render homes in some flood-prone communities uninsurable.