With recent unpredictable weather conditions leading to increased flooding, homeowners and renters in New Zealand are seeking information on what is covered by their insurance. Brent Denny from Coversure was kind enough to share his thoughts.
Generally, structures are covered by insurance policies for flood damages, but there are two parties involved in the process, the EQC and the private insurer. EQC covers damage to land up to a maximum of $300,000(plus GST), while private insurers cover damages to the physical house. If a property is flooded, insurance companies prioritize claims, depending on the severity of damage. The quicker you can get your claim in, the higher the priority it will receive. Therefore, it is essential to document any damage with photographs and videos and contact the insurer as soon as possible.
Contents insurance can also provide some cover, even if you are renting, but this depends on your policy. Most policies should cover some form of flood damage, but again, the priority of claims will be determined by the extent of the damage. If all your possessions have been damaged in a flood, you will receive a higher priority than if only a few tools were lost in the garage.
If your property has been severely damaged by flooding, EQC can cover a claim for land damage if the land is within eight meters of the building or outbuildings. However, if the damage is to the access way, EQC can cover it up to 60 meters away from the property. While EQC may provide some benefits for land damage, it may not cover landscaping.
Therefore, it is crucial to read your policy’s wording and understand what is and isn’t covered. Taking photographs and documenting the damage is essential, and you should contact your insurer as soon as possible.
