Cyclone Gabrielle insurance claims top $890 million

Waipawa was inundated by Cyclone Gabrielle floodwaters. Photo / Supplied

Insurance claims relating to Cyclone Gabrielle have topped $890 million, with Hawke’s Bay-based claims making up more than half of that by dollar value, figures from the Insurance Council show.

So far more than 40,000 claims have been received by insurers in the wake of the devastating event which hit the country in mid-February causing schools to close and massive flooding and slips around the North Island.

Tim Grafton, ICNZ chief executive, said so far around $70m had been paid out. That was on top of the $110m which had already been paid out for the Auckland Anniversary weekend floods.

“Insurers are doing all that they can to get assessments completed and to agree next steps with customers. In the meantime, insurers have been working hard to activate temporary accommodation benefits for homeowners and renters alike,” Grafton said.

Hawke’s Bay residents and businesses have so far lodged $481m from 13,221 claims while Northland, Coromandel and the Waikato had a combined value of $262m from 14,235 claims.

Aucklanders had so far claimed for $98m worth of damage through 10,996 claims while in Tairawhiti it was $48.4m for 1823 claims.

More than 18,000 home insurance claims have been made across the country totalling $372m with the vast majority of this coming from the Hawke’s Bay region where home insurance claims have so far hit $238m.

The value of commercial claims was the second highest at $352m and just over 6700 claims. Northland, Coromandel and Waikato businesses combined had claimed $166m while in Hawke’s Bay it was $146m.

Contents insurance claims have hit $80.6m while motor claims are at $73.3m and marine $4.5m.

Meanwhile, BNZ is warning those who receive an insurance payout to be wary of fraudsters.

Ashley Kai Fong, head of financial crime at the BNZ, said scammers often preyed on people in vulnerable situations and those who had received or were about to receive an insurance payout needed to be extra vigilant.

Kai Fong said the scam could come in the form of an invoice scam where the email account of a legitimate business is compromised and the fraudster modifies a bill to replace the bank account number with their own.

“Always thoroughly check the authenticity of any invoice or bill you receive and contact the sender directly if you have any doubts. Additionally, confirm with a supplier that the bank account number on an invoice is correct before making a payment.”

Kai Fong said bogus tradies offering to repair homes or properties at cheap rates were another common scam.

The person often asked for an upfront payment and then either did a poor job or took off before completing the work.

“Always request written quotes and references from tradespeople you hire, and avoid paying cash or disclosing personal information.”

He also warned about investment scams.

“Getting back on your feet after a natural disaster takes time, and some people may look for places to keep their insurance money while they wait for homes to be rebuilt or property to be replaced.

“We urge all New Zealanders to exercise caution and do their research before investing any money. Be sceptical of unsolicited investment offers, verify the credentials of any investment adviser, and ensure they’re licensed by the Financial Markets Authority. It is also recommended to call the intended recipient of your investment on their publicly listed number to confirm their account details. Always report suspicious activity and seek independent advice before making any decisions,” he says.

“Remember, if it sounds too good to be true, it probably is.”

Kai Fong said the public should also be wary of scammers trying to pose as fundraisers for the cyclone.

“Always check out any charity before donating by visiting their official website or calling their official number to make sure they are legit. Avoid clicking on links or opening attachments in unsolicited emails, in case they are dodgy.“