Insurers brace for claims in the tens of millions

A roof being lifted by the force of the tornado. Photo / Jeff Yin Li

The damage caused by Tuesday's tornado could run into the tens of millions with one retailer likely to write off most of their stock.

Insurance Council chief executive Chris Ryan said the industry was already stretched but he was confident insurers would be able to make their pay-outs.

Mr Ryan said the 200km/h winds caused major damage to commercial and residential buildings and assessors were on the ground totalling up the cost that could run into tens of millions of dollars.

He said the tornado followed hard on the heels of recent floods in coastal Hawkes Bay and the two Christchurch earthquakes.

Westfield shopping centre spokeswoman Deb McGhie said some businesses in the Albany mall would remain closed but 82 other retailers re-opened their doors yesterday.

She said there was some damage to the roof of the building but the cost would not be known for about a week.

One of the businesses damaged by the tornado is the Bond and Bond shop inside the Albany Westfield.

Bond and Bond is owned by the Noel Leeming Group. Chief executive John Journee said electronics and water "don't fit terribly well" and most of the stock would be the subject of an insurance claim.

"There is some damage to the wall between us and the bank and the roof above that."

Asked how much the claim might be, Mr Journee said it was too early to tell. He said it was also unclear when the shop would re-open.

Mr Journee said importantly none of the customers or staff inside the shop were hurt.

Number One Shoe Warehouse has its largest shop in the Westfield shopping centre.

Operations general manager Craig Faulkner said it was a "flippin' miracle" no one was injured as there was more damage to the Albany shop than there was to their Christchurch outlet which was hit by the earthquake. He said it was too soon to know the cost of the water damage to his stock with 20 per cent of the roof missing.

"It is incredibly humbling to have a team who wants to get in and put their store right."

Hilary Gao, who manages the Coffee Club inside Westfield, said: "We had just left everything and we just managed to get the customers out - the only thing I got was my phone."

She was only able to get back inside the shopping centre yesterday afternoon to get her belongings. She said her shop had water damage and some chairs and tables had been knocked around.

Westpac Bank spokeswoman Haley Lynch said damage to the Albany Westfield branch was still being assessed.

She said the branch would be closed for some time and it was not clear when it would re-open.

Foodstuffs' Pak'n Save supermarket is nearby and re-opened yesterday afternoon.

Managing director Murray Jordan said two staff members received minor injuries in the tornado.

"One is back at work today and the other will be returning next week," he said.