Insurance council warns on winter flooding

In the wake of floods this week the Insurance Council has issued another warning that some properties may find it harder to obtain insurance against coastal conditions and flooding.

In a statement today, the council said the flooding of seaside settlements along the lower East Coast of the North Island was another wake up call for all of New Zealand.

The coastal township of Castlepoint was one of the worst affected this week, with part of its road being swept away and baches on the beachfront being inundated with water.

Among the baches flooded was one which recently sold at auction for a record $690,000.

Insurance Council chief executive Chris Ryan, said that climate changes were working against many properties in low lying areas of the country and the latest storm was just the beginning of winter floods.

He is calling on all New Zealanders to check they have adequate insurance and for local authorities to ensure they have adequate flood protection and recovery procedures in place.

"The massive increase in the popularity of coastal and rural properties may have failed to take into account the known risks of placing properties in flood prone area," Mr Ryan said.

The council said local authorities should be seeing the latest downpour as another reason to ensure their storm protection infrastructure was well maintained and able to cope with coming winter storms.

The issue was not just a New Zealand one, it was also faced by many nations around the world.

"Climate change brings with it more erratic weather and storms, which create flooding in areas that have seen housing expand into flood prone areas," the council said.

It is encouraging owners of coastal properties to check their Land Information Memorandum (LIM), or Property Information Memorandum (PIM), to identify whether they are subject to a hazard identified by local authorities, or a Section 36, Sub-section 2 Exemption, under the Building Act, has been applied to their properties.

"The latest minor flooding is another wake-up call for all of New Zealanders, both individuals and local authorities. We must all reassess the risks we are now taking in pushing settlements closer to the both sea and flood plains at a time when nature appears to be pushing back," Mr Ryan said.

In some communities as many as 40 per cent of people had inadequate or no insurance at all for their homes.

"Prepare now," he said.

"The floods will come and without insurance winter flooding will spell disaster for uninsured families and unprepared communities."

- NZPA