By Rebecca Styles
Research Lead | Hautū Rangahau
Insurance for selected natural disasters in Aotearoa is available via the country’s natural hazards insurance scheme of the Natural Hazards Commission Toka Tū Ake (NHC). We explain what the NHC covers for flood and other storm damage.
The Natural Hazards Commission (NHC), formerly called the Earthquake Commission (EQC), provides natural disaster insurance for homes and some residential land through what it calls NHCover.
You pay for NHCover through a levy in your home insurance premium. You must have house insurance to be eligible for NHCover.
If your property is damaged in a storm or flood, NHCover will provide some cover for damage to the residential land. The land cover is designed to be a contribution towards reinstating land rather than full cover for your land.
Your private insurer will cover any damage to your home and contents, in line with your house and contents insurance policies.
How do I get NHCover?
You can only get NHCover if you have house insurance.
You automatically have NHCover if your private house insurance includes fire insurance – which most policies do.
In the event of a natural disaster, contact your private insurer first. It will assess, manage and settle your NHC and private insurance claims. This means you have one point of contact, rather than having to contact both NHC and your insurer.
What does NHCover for land mean?
What does NHCover for land mean?
NHCover is provided for the land that sits under or within 8 metres of your home and certain outbuildings, such as a shed or garage. Land under or supporting your main accessway to the property is also covered, up to 60 metres from your home.
To qualify, the land must be within the boundaries shown on your record of title. It may also include a right of way over a neighbouring property (if you have a legal easement).
Some cover is also provided for bridges and culverts within the boundaries mentioned above. It’s also available for some retaining walls that are necessary to support or protect the insured buildings or land areas.
NHCover will cover either the cost to repair damage to insured land or the value of the land – whichever is less. The maximum payout is capped at the land value.
The land cover is designed to be a contribution towards reinstating land rather than full cover for your land.
If there has been a landslip, NHCover will cover the damage to your home and surrounding insured residential land, up to the applicable NHCover building and land caps.
Clearing silt and debris after a storm or flood
If silt or debris has been swept onto your land by wind or water, NHCover may cover the cost of the clean-up, up to the land cap. NHCover can cover the cost of removing debris from your insured land, as well as removing silt that is 15 millimetres or deeper. Generally, silt that is less than 15 millimetres deep will gradually disappear in the weeks following the floods, and you may not need to remove it.
NHCover will also cover the cost to repair any land scour (caused by water flowing over it) from your insured land, up to the land cap.
What to do after a disaster
Your first step should always be to make sure you and your loved ones are safe after a natural disaster.
Your second step is to gather documentation that confirms the damage and contact your insurer as soon as possible. Your insurer will handle the NHCover claim.
Write down what happened, including the dates and times of all stages of the event and whether any emergency services were involved.
Take as many photos or videos as possible before and after making any emergency repairs, moving items or throwing out damaged contents.
Take photos of your mailbox or something that shows your house number (to confirm your address). Also take photos of the front, sides and back of your home, as well as any sheds or garages and damaged land.
If you have flood damage, mark and measure how high the water reached and take a photo of it before you clean up.
You’ll need to discuss any non-urgent repairs with your insurer first.
Keep a record of every time you contact your insurer, what you requested and who you spoke to. This will help if you have any problems settling your claim in a timely manner.
If your property was damaged in one event (for example, an earthquake) and then is damaged again in another event shortly after, record the new damage and report it to your insurer, too.
Once your claim is lodged, your insurer will discuss with you how best to evaluate the damage. Engineers or other experts may come in to assess the situation and estimate repair costs. For a land claim, a registered valuer will probably visit.
When your claim is ready to be settled, your insurer will get in touch and explain the outcome and the settlement amount (minus any excess). Then you can get on with repairs.
What about cover for other natural disasters?
NHC provides natural disaster insurance for homes for:
earthquakes
natural landslides
volcanic eruptions
hydrothermal activity
tsunami
storms (land cover only)
floods (land cover only)
fire that occurs because of any of the above.
In the event of a natural disaster (excluding storms and floods), you have up to $300,000 (plus GST) worth of NHCover for damage to your home – this is commonly called the ‘NHCover building cap’.
If the damage to your home is over the cap, your private insurer should pay out – up to the claim limits of your policy. It’s likely NHCover and your private insurer will each deduct an excess, as well.
We know your rights
Got a problem with a faulty product, received shoddy service or been misled by a retailer? Our expert advisers can provide clear, practical advice that you can trust.
