A new public register of earthquake-prone buildings in New Zealand will put pressure on owners to fix or demolish them, the Insurance Council of New Zealand (ICNZ) says.

The register is among reforms stemming from the Canterbury Earthquakes Royal Commission announced by Building and Construction Minister Maurice Williamson last week.

ICNZ Insurance Manager John Lucas says the register will allow “pretty clear visibility on the condition of some of these buildings”.

“For those buildings that are earthquake-prone, it puts a lot of pressure on building owners to step up their game and get their building strengthened or perhaps pulled down,” he told insuranceNEWS.com.au.

Unreinforced masonry buildings caused 39 deaths in the quake of February 22, 2011.

Under laws to be introduced later this year, earthquake-prone commercial and multi-unit, multi-storey housing must be strengthened or demolished. 

Mr Williamson says assessments are expected to identify 15,000 to 25,000 such buildings in the next five years.

The owners will have 15 years to comply with new national standards – five years longer than recommended by the royal commission, after public feedback suggested its timeframe was too tight.

Owners of earthquake-prone Category 1 heritage buildings and those on the National Historic Landmarks List can apply for extensions of up to 10 years.

“There will also be exemptions available for buildings where the impact of failure is low, such as farm outbuildings and some rural halls and churches,” Mr Williamson said.

Mr Lucas says the treatment of heritage buildings may discourage insurers already wary of covering older properties.

“Those buildings can be a challenge to insure in the current market and I don’t think appetite will be there for insurers to get too involved in older buildings until they’re strengthened.

He says the new laws are unlikely to affect premiums or insurability. “What [they] will make a difference to is the ability for building owners whose buildings are not in such good condition to sort them out.”

Mr Williamson says the Government will consider financial incentives in coming months, and legislation will be introduced to amend the Building Act this year.