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Home / Business

Flooding and earthquake payouts near $128m in three years

By Simon Plumb
Reporter·Herald on Sunday·
27 May, 2017 05:00 PM3 mins to read

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Aerial images show the extent of flooding in Edgecumbe earlier this year, with some properties completely surrounded by brown floodwaters. Photo / supplied
Aerial images show the extent of flooding in Edgecumbe earlier this year, with some properties completely surrounded by brown floodwaters. Photo / supplied

Aerial images show the extent of flooding in Edgecumbe earlier this year, with some properties completely surrounded by brown floodwaters. Photo / supplied

Almost $40 million in claims have been paid out for flooding and storm damage over the last three and a half years.

The pay-outs are revealed in figures released by the Earthquake Commission (EQC) - who also paid out another $88m for earthquake damage during the same period, totalling more than $127m.

Released by EQC under the Official Information Act, the commission confirmed the figures have been paid from the Natural Disaster Fund.

The fund dates back to 1945, but there hadn't been any major claims on it until the devastating Canterbury earthquakes in 2010 and 2011 - when it had grown to an accumulated value of $5.9 billion at the start of the 2010-11 financial year.

It is also expected to take another major hit as claims from last year's Kaikoura and Wellington earthquakes roll through, as well as a number of regions being affected by serious flooding this year, including Bay of Plenty town Edgecumbe where 1600 people were evacuated in April and the clean-up continues.

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According to the figures, 2016 saw the highest number of pay-outs for quake damage, with 54,074 claims totalling more than $74m.

Data released by EQC has also revealed Auckland leads a list of the largest, non-quake related claims paid out between January 2014 and April 2017.

Landslip, storm and flood damage saw EQC pay out $2.4m for an Auckland claim in August 2015. The sum was almost $2m more the next largest claim in Gisborne from June 2014.

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State Highway 1 on the coast at Kaikoura near the Kekerengu fault line and was severely damaged in the November 7.8 magnitude earthquake. Photo / supplied
State Highway 1 on the coast at Kaikoura near the Kekerengu fault line and was severely damaged in the November 7.8 magnitude earthquake. Photo / supplied

An EQC spokesman said the top Auckland claim "relates to a group of properties". Auckland was hit by a major storm in July 2015, which flooded Henderson Valley, Waitakere, Papatoetoe, Papakura and Auckland International Airport.

The deluge saw 77.4mm of rain hit parts of Auckland in just five hours between 4-9pm and were 17 emergency calls for flooded homes.

Infamously, the incident prompted a review of Auckland Council's response to flooding, which revealed the media knew more about the storm's impact than civil defence emergency managers.

Gisborne claims account for seven of the non-quake top 10, totalling just over $2m.

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EQC is a Crown entity investing in natural disaster research, education and providing insurance to residential property owners. Land cover is usually capped at the dollar value of the area of insured land that has been lost or damaged as a direct result of the natural disaster.

Minister responsible for the EQC, Gerry Brownlee, announced this month that the commission will lead the clean-up of flood-damaged properties in Edgecumbe.

"I've authorised EQC to clean-up all affected properties in the township, including for those homeowners who do not have insurance," Brownlee said two weeks ago.

"Having the Government pick up the tab for cleaning up Edgecumbe means work can get underway while cost sharing arrangements are finalised with the Whakatane District Council.

"This arrangement is similar to the management of emergency works in Canterbury following the February 2011 earthquake."

TOP 10 EQC PAY-OUT'S FOR NON-QUAKE CLAIMS: JANUARY 2014-APRIL 2017

• $2,405,616.09 (Auckland, August 2015)
• $441,208.90 (Gisborne, June 2014)
• $380,863.16 (Gisborne, June 2014)
• $296,444.23 (Gisborne, September 2014)
• $259,650.00 (Urenui, June 2014)
• $258,850.00 (Gisborne, September 2014)
• $237,650.00 (Gisborne, April 2015)
• $231,100.00 (Gisborne, August 2014)
• $223,800.00 (Gisborne, August 2014)
• $222,350.00 (Whakapirau, July 2016)

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