Despite our position at the bottom of the world, New Zealand is no stranger to the natural disasters that can plague the rest of the earth’s surface. Our unique location in the Roaring Forties, one of the world’s strongest westerly wind belts means we often face extreme weather situations. .

As a small island, Aotearoa has experienced many bouts of extreme weather over the years. Kiwis are known for their ‘shake it off and keep moving’ attitude but recovering from a natural disaster requires a substantial amount of preparation. As experienced insurance brokers we aim to simplify this coverage for you, to help you be prepared for the worst.

Read on as we unpack some of the most common natural disasters that happen in Aotearoa, the role of insurance coverage, and what to expect when insuring against extreme weather.

Natural Disasters Common in Aotearoa, New Zealand

Earthquakes

New Zealand is famous for its seismic activity, thanks to its position on the boundary between the Pacific and Australian tectonic plates. The South Island is especially earthquake-prone, with Christchurch still feeling the effects of the 2011 quake. In places like Wellington, there is also substantial risk. Earthquakes lead to widespread devastation, causing damage to homes, buildings, roads, and infrastructure, with significant cost..

Flooding

Flooding is one of New Zealand’s most common natural disasters. From heavy rains to rapid snowmelt or coastal storms, can cause floods unexpectedly. Even areas that don’t normally see much rain can experience flash floods, especially in areas with poor drainage.

Floods can cause serious damage to properties, affecting homeowners,businesses and farmers alike. With the increasing intensity of rainfall events due to climate change, this issue is becoming more significant.

Cyclones

Cyclones (or tropical storms) aren’t as common as earthquakes or floods, but can bring intense winds, heavy rainfall, and storm surges when they hit. The North Island’s east coast is most at risk, but cyclones can affect the whole country, causing flooding and damage due to strong winds. These storms can damage roofs, uproot trees, and cause power outages. The heavy rain from a cyclone can also result in flooding and landslips, compounding the damage.

In short, insurance coverage for natural disasters is a vital part of any Kiwi’s insurance portfolio, especially if you live in an area that has previously been hit by an earthquake, flooding, or a cyclone.

Insurance Coverage for Natural Disasters: What is Covered?

Personal Insurance Coverage

In the wake of a natural disaster, you will likely need emergency repairs, recovery of any stranded vehicles, transportation to safety and temporary accommodation. Insurance can help to cover these scenarios. If you have a home insurance policy, you also pay a Natural Hazards Insurance levy for cover through the Natural Hazards Commission. These policies can assist you in the rebuild of your home following a natural disaster.

Thanks to Aotearoa’s publicly subsidised healthcare, you can also access treatment for any potential injuries resulting from a natural disaster. That said, if there are excess medical expenses, these will need to be covered by a tailored medical insurance policy, which you can have in tandem with your natural disaster coverage.

Commercial Insurance Coverage

For businesses, the damage caused by natural disasters can be extensive. Buildings, equipment and stock be destroyed, and operations can also be severely disrupted. This is particularly damaging for industries like agriculture and dairy farming, where extreme weather can lead to loss of produce, livestock or damage to rural infrastructure.

Insurance coverage for natural disasters can help you rebuild and may also be provide cover for lost income in the wake of a significant weather event.

However,  cover  varies from policy to policy. It’s crucial to  understand what is protected and what you might need to handle on your own. A qualified insurance broker with experience in natural disaster coverage can help you navigate both the insurance jargon and policy documentation.

Prepare for the Worst with the Team at Greenlight.

Natural disasters can strike at the worst possible time, which means it’s vital to be prepared. At Greenlight Insurance Brokers, we specialise in commercial, personal,  farm insurance and more to help you protect what matters most.

If you’re considering acquiring insurance coverage for natural disasters, book an appointment with one of our brokers today to find out which solution is best for you.