Tenant’s ordeal spotlights need for insurance amid rising climate threats
Tenant’s ordeal spotlights need for insurance amid rising climate threats | Insurance Business New Zealand
Catastrophe & Flood
Tenant’s ordeal spotlights need for insurance amid rising climate threats
Tenant shares experience amid calls for stronger climate action
Catastrophe & Flood
By
Roxanne Libatique
An Auckland tenant’s experience during the January 2023 storm has underscored the growing concern among New Zealanders about climate change and the importance of insurance in mitigating financial losses from natural disasters.
Kelly Dey, who lived in a Kāinga Ora home in Māngere, was unaware that her house was located on a flood plain. Without contents insurance, she was left struggling to recover after the floodwaters severely damaged her home, forcing her and her four children to evacuate in waist-deep water.
“I could see by about five o’clock the water was coming up, it was actually literally by my house, by the front door,” she told RNZ, adding that the lack of insurance has left her with no way to replace her damaged belongings.
Dey’s situation reflects a wider issue for many New Zealanders as climate change continues to drive extreme weather events.
New Zealanders call for stronger measures to address climate change
A recent survey conducted by Ipsos Ltd for AMI, State, and NZI showed that many New Zealanders are calling for stronger measures to mitigate the effects of climate change.
Amanda Whiting, CEO of AMI, State, and NZI, highlighted that New Zealanders are increasingly concerned about the impact of natural hazards, including flooding and storms.
“The North Island flooding and Cyclone Gabrielle in early 2023 had a profound effect on our country and our communities, bringing home for many the very real impact of climate change on our lives,” she said.
The survey also found that 68% of respondents expect to be affected by climate hazards in the coming years, with 90% anticipating more frequent and severe floods.
Natural hazard disclosure for rentals
Dey’s experience of losing her belongings during a flood without contents insurance illustrates the financial vulnerability many New Zealanders may face as such weather events become more common. Without adequate insurance, tenants and homeowners could be left to bear the full cost of replacing damaged property – which insurers and brokers could share with their clients.
Kāinga Ora’s regional director for Counties Manukau, Angela Pearce, told RNZ that while the house was built to meet standards for a 100-year storm, the January storm was a more severe, 200-year event. She added that Kāinga Ora does not generally disclose whether a property is on a flood plain, but tenants can access hazard information from local councils.
Property lawyer Joanna Pidgeon noted that while landlords are not legally required to disclose natural hazards, tenants should take steps to protect themselves by securing contents insurance, especially in high-risk areas.
Role of insurance in mitigating the impacts of climate change
The AMI, State, and NZI survey revealed that many New Zealanders recognise the role of insurance in managing climate risks.
As Kāinga Ora works to demolish flood-damaged homes and Auckland Council plans stormwater infrastructure upgrades to reduce future flood risks, the experience of tenants like Dey highlighted the need for better protection against natural disasters.
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