Toka Tū Ake EQC received a record number of insurance claims for land damage in 2022. The commission received almost 3,300 claims for land damage caused by landslips, storms, and floods – making 80% of the 4,209 insurance claims received during the 12 months ended Dec. 1.
According to EQC, this was more than double the number of land claims it had received from these events in the previous four years.
“The stormy winter of 2022 was disruptive and often devastating for communities across the country and resulted in record numbers of land claims,” said Kate Tod, Toka Tū Ake chief readiness officer. “Notably, there was a huge increase in landslip claims, and these are usually complex and costly to fix.
“New Zealand is one of the only countries in the world with insurance cover for residential land, provided through the Toka Tū Ake EQC scheme. Most private insurers here and overseas only cover the buildings on top.”
However, Tod pointed out that EQC only covers land damage for up to the value of the insured land, and up to eight metres around the insured’s home. Some homeowners with larger properties may not be fully covered, especially when complex landslips have occurred, she said.
With New Zealanders feeling the impact of climate change through severe weather events, Tod said that homeowners must protect themselves and make sure they know what they are covered for.
“One thing you can do is to check your slopes and retaining walls are well maintained,” Tod said. “If you have a long driveway or a shared driveway, consider if you can strengthen it against storm damage and make plans in case your driveway gets washed away.”
EQC also provided advice for homeowners and communities to reduce their risks of damage from natural hazards.
“The summer holidays are often a good time to take action with a bit of time at home, and some warm weather,” Tod said. “While you’re off work, why not take some time to review your home insurance policy and check for any obvious exclusions? You can use an online calculator to make sure you have enough cover to rebuild your home if it suffers significant damage and assess your land cover.”
