In Eskdale, Hawke's Bay, residents continue to deal with the repercussions of insurance claims one year following the destruction caused by Cyclone Gabrielle.
The Claims Resolution Service, established in February 2023, aims to assist homeowners with disputes over residential insurance claims post-natural disasters. This service, offered free of charge, has managed to resolve 965 out of 1,725 claims in its inaugural year, targeting those unhappy with the handling or outcome of their claims.
Claims Resolution Service director Darren Wright emphasised the importance of independent advice for homeowners navigating the claims process, as reported by RNZ. He raised concerns about reports of homeowners being pressured into signing binding agreements to progress their claims, a step he said should not be considered mandatory.
Among the impacted residents is Carla Pell from Eskdale, whose home was severely damaged by flooding during the cyclone.
According to RNZ, Pell filed a claim immediately after the disaster but was hesitant to accept an early settlement. Her reluctance was due to the ongoing discussions around potential red zones and buyouts by the council, leaving her uncertain about the future habitability of her property.
The process was made even more complex by the insurance company's eagerness to settle claims quickly, despite the lack of clarity regarding the council's decisions on flood-affected areas. Pell highlighted the confusing nature of dealing with multiple points of contact at the insurance company, including subcontractors and staff, which did not simplify the process.
“Very early on, before the council had made any decision about the categorisation, they made it very clear that they would be looking at the flood maps,” she told RNZ. “But our insurance company wanted to settle with us then and there, on a repair basis. We thought, ‘Okay, fair enough, but we don't actually know whether we'll be allowed to go back to our house, so why are we going to accept a settlement for repairing a house that we may not even be able to go back to?’"
Despite these obstacles, Pell found a sense of support within her community and the Claims Resolution Service.
At an information hub for affected residents, a representative from the service provided expert advice, helping Pell and others navigate through their insurance claims more effectively.
Ultimately, Pell's home was deemed category 3, unsafe for return, but her insurance claim concluded with a full payout for the value of her property, a result she described as more favourable than expected.
“We are very fortunate; we are, I know,” Pell said. “There are still a lot of people in our community that are still fighting with the insurance companies.
“It's still not over, and it could be potentially years for a lot of people. We're a very tight-knit community, and as much as I'm thrilled that we got sorted, I just would like everyone else to be in the same boat as us, so everyone can start moving on.”
PERILS' latest data revealed that insurance losses resulting from Cyclone Gabrielle totalled NZ$2,174 million, marking an increase from the preliminary third estimate of NZ$2,018 million, which was published on Aug. 17, 2023
