Insurance freeze after big shake

Wairarapa residents are currently excluded from getting new insurance policies until earthquake activity settles down.

Following the severe 6.5 quake and the swarm of aftershocks in central New Zealand, many major insurance companies are suspending new commercial, home and contents insurance cover in the Wellington region and Marlborough.

IAG brands State, NZI, AMI and Lantern, along with BNZ, ASB and the Co-operative Bank are not issuing new policies.

According to IAG, it is standard practice to put a temporary halt on new insurance policies after a large earthquake.

Tower is still issuing new insurance policies for Wairarapa residents.

Tower's head of corporate communications, Tracey Palmer, said the company was focusing on supporting people.

"We thought it was the right thing to do for our customers."

AA Insurance is excluding Wairarapa for new home and contents policies.

It said the hold on new policies would be in effect until the seismic activity settled down.

People buying property may be in limbo unless existing house insurance can be transferred.

Central New Zealand has been rattled by around 1500 aftershocks in the past week.

Many of the quakes were around Seddon, near the epicentre of the 6.5 magnitude earthquake on July 21.

GNS Science has estimated it would take a few weeks to return to usual background levels of seismicity, as long there was not a big earthquake.

However, a "severe" 5.4 quake in Cook Strait at 1.07am yesterday increased the probability of further severe aftershocks, according to Geonet.