Insurance claims for landslides in New Zealand have surged dramatically, with nearly 10,000 claims lodged in the past three years, according to the Natural Hazards Commission Toka Tū Ake (NHC).
This marks a nearly tenfold increase compared to the preceding three-year period, which saw just over 1,000 claims.
The NHC, responsible for managing New Zealand’s natural hazards insurance scheme, has urged property owners to familiarise themselves with potential risks and the limitations of their insurance coverage.
Jo Horrocks, chief resilience and research officer at NHC Toka Tū Ake, said landslide damage is often complex and expensive, with insurance for damaged land subject to certain restrictions.
“Landslide damage can be complex and costly to fix, and the insurance available for damaged land is limited. It’s really important to understand the risks, think about ways to protect your property, and factor that into your financial planning – before an event happens,” she said.
Horrocks highlighted that landslides now account for the majority of natural hazard insurance claims.
Following the Auckland anniversary floods in January 2023, landslide-related claims have totalled $302 million – exceeding the combined cost of all other natural hazards by more than four times.
Under New Zealand’s natural hazards insurance framework, coverage for landslide damage includes up to $300,000 for insured homes, with additional costs typically covered by private insurance. Land damage is also partially covered, but only up to the value of insured land within eight meters of a home. Severe or complex landslides may leave homeowners with uncovered repair expenses.
To minimise risks, homeowners living near slopes are encouraged to monitor terrain stability, maintain retaining walls, and consult geotechnical experts. Additional preventive steps, such as ensuring driveways are reinforced against storm damage, are also recommended.
NHC said prospective property buyers can access the Natural Hazards Portal to review information about past claims and assess risks specific to potential properties.
In response to the growing impact of landslides, the New Zealand Geotechnical Society (NZGS) has introduced guidelines designed to bring consistency to landslide risk assessments, addressing a long-standing issue of variable results in slope evaluations.
Richard Justice, a geotechnical risk specialist and the lead author of the guidelines, noted the challenges caused by inconsistent assessments.
“The lack of a good practise document can sometimes lead to the same slope being evaluated by different people with completely different results,” he said.
The initial phase of the guidelines focuses on identifying landslide hazards and managing unstable slopes. Additional sections, expected in 2025, will delve into field investigation practices, slope stability analysis, and strategies for hazard mitigation.
Justice clarified that while the guidelines offer support, they are not intended to replace professional expertise.
“We will always need to rely on our geotechnical engineers and engineering geologists. The guidance we have developed is meant to help them in their assessment of landslides – but it cannot replace experience and expertise,” he said.
The project received funding from NHC Toka Tū Ake and the Ministry of Business, Innovation and Employment and aligns with broader efforts to improve land resilience.
