Insurers fear a decision on a crucial amendment to the Building Act may not arrive before New Zealand’s Parliament rises on July 31, ahead of the country’s September 20 election.

The amendment proposes that building owners upgrade or demolish earthquake-prone buildings within 15 years of assessment by local councils, or 25 years in the case of historic properties. Upgraded sites would have to satisfy at least 34% of new building standards introduced after the Christchurch earthquakes.

However, the Insurance Council of New Zealand (ICNZ) wants the building assessments to also include non-structural items such as ceilings, sprinkler systems, lights and air-conditioning.

“If you have sprinkler systems come down and destroy IT systems and computer hardware, it adds considerable amounts to the damage,” ICNZ CEO Tim Grafton told insuranceNEWS.com.au.

Last month Mr Grafton appeared before a parliamentary select committee taking submissions on the Building (Earthquake-Prone Buildings) Amendment Bill.

While acknowledging that the aim of the bill is to save lives, Mr Grafton told the committee the insurance industry’s focus is “on property damage causing economic loss, as well as life safety”.

He asked it to consider “the now reasonably understood problem with non-structural components of a building such as ceilings and above-ceiling services, including important fire-protection systems, breaking loose in an earthquake and ending up on the floor or on people”.

Mr Grafton says “how far this legislation progresses before the House rises” remains to be seen, “but we’ve drawn the issue to the attention of members”.