Nearly three years after a significant landslip disrupted lives on Maungatapu Peninsula, five Tauranga homeowners remain displaced and entangled in complex insurance and liability challenges, drawing attention to the limitations of current risk coverage frameworks and hazard disclosures in New Zealand’s residential insurance market.
The incident, which occurred in July 2022, saw land give way behind several properties, triggering dangerous building notices under the Building Act and long-term evacuation orders.
While some residents have received partial support through the Natural Hazards Commission (NHC), the overall cost of repairs – estimated at $3 million – remains unresolved, with insurance and public assistance mechanisms falling short.
According to RNZ-owned Local Democracy Reporting, the homeowners have sought financial relief from Tauranga City Council, citing its role in permitting construction in an area known for land instability and its historical use of soak holes for stormwater management.
However, the council has declined to contribute to remediation, arguing the damage occurred on private property and did not impact public assets.
The situation in Tauranga mirrors risks emerging in other high-demand areas such as Christchurch’s Southshore and Papamoa in the Bay of Plenty. These suburbs have attracted buyers despite known environmental vulnerabilities, putting pressure on insurers and brokers to clarify coverage terms and exclusions.
The Insurance Brokers Association of New Zealand (IBANZ) noted that many residential policies cover damage to structures and personal property but exclude land remediation, especially where risk is pre-identified through Natural Hazard Section Notices.
These notices, issued under Section 72 of the Building Act, signal that local councils have granted building consents in high-risk zones on the condition that construction does not worsen the hazard. While these disclosures are meant to inform buyers and lenders, they can also limit claims eligibility.
“This could leave the property owner with no cover at all for what is likely to be the most significant natural hazard their property faces,” said IBANZ chief executive Mel Gorham.
As concerns grow about natural hazards, the NHC highlighted over $10 million in funding for research and public outreach initiatives aimed at enhancing national resilience.
Funded projects include landslip vulnerability mapping, the evaluation of slope stabilisation technologies, and educational tools to raise awareness of hazard-related insurance implications.
While these efforts aim to better inform planning and policy decisions, the Tauranga case underscores the need for stronger alignment between risk assessment, insurance offerings, and government policy.