Depending on where Mr. Watersedge lives, there are important factors that will influence his insurance options:
This article is a part of a series on flood insurance options. Read the intro and meet Mr. Watersedge here.
The Insurance Council of New Zealand (ICNZ) was established in 1895 with the mandate of providing industry representation for the fire and general insurance industry. Given the increase in and impact of natural disasters in New Zealand since 1895, the ICNZ’s mandate expanded to include flood insurance. The ICNZ’s role is not to provide insurance to homeowners and businesses; rather it represents the overall insurance industry in New Zealand. Insurance companies who are members of the ICNZ are licensed under the Insurance Act 2010 and have signed the Fair Insurance Code binding them to ethical business practices [1].
In the event of a flood, impacted individuals and businesses are encouraged to contact their insurance provider as soon as possible. This includes providing a list and photographs of all damaged property and contents before disposal, so an insurance assessment can be conducted. Generally flood damage to buildings, contents, and vehicles are covered and accepted by insurance providers because policies will cover the building, contents, and separate structures such as a garage, fence, garden wall, driveway, and patio [2]. This coverage is beneficial to Mr. Watersedge due to the building and content damage impacting his property.
In New Zealand, flood insurance is a relatively straightforward and fair process. The ICNZ, regulators, and insurance companies are more focused on promoting flood mitigation and resiliency to prevent severe damage from otherwise manageable floods [3]. Mr. Watersedge is also interested in this approach because he does not want another 1 in 100 year flood to damage his property the way it did last spring.
In New Zealand, land titles are subject to section 74 notices that locate them within a floodplain. Homes and businesses that have land titles with the section 74 notice may not be eligible for flood insurance. If property does have a notice of this type then the landowner is obliged to disclose that information to their insurance provider, otherwise insurance claims will be denied [4].
Individuals or businesses looking to obtain flood insurance are also advised to closely review potential policies to understand whether or not flood damage is covered and to determine whether or not a specific provider is a member of the ICNZ. New Zealand’s policy would not be effective for Mr. Watersedge because his house is located within the floodplain making it ineligible for coverage. Furthermore, budget insurance providers would not be able to cover Mr. Watersedge’s coveted Star Trek memorabilia worth $250,000.
The ICNZ often provides recommendations to the Government of New Zealand to update insurance regulations. In 2014, the ICNZ provided advice to the Government in the report Protecting New Zealand from Natural Hazards. This report was written in response to the growing occurrence of natural disasters, including flooding. Recommendations from the report include:
The ICNZ also recommended the New Zealand Government maintain affordable insurance for all citizens. For example, by improving disaster mitigation and resilience, levies could be removed from insurance premiums to improve affordability. As a result, a higher percentage of the population would purchase insurance for natural disasters such as flooding.
Share this Post:
We provide Canadian educational resources on water practices to promote conservation and sustainability. Our team crafts current and relevant content, while encouraging feedback and engagement.
The Canada WaterPortal is a registered charity, #807121876RR0001
We recognize and respect the sovereignty of the Indigenous Peoples and communities on whose land our work takes place.
© 2024 All Rights Reserved.
Ross has extensive executive experience in Operations, Governance, Information Technology and Strategy at the board and senior management level including Mancal Corporation, Mancal Energy, Highridge Exploration and Atlantis Resources. He has worked in Oil and Gas, Coal, Commercial Real Estate, Portfolio Management, Recreation, Retail and Water and Wastewater Treatment. His experience is also geographically diverse having overseen operations in Canada, the United States, United Kingdom and Northern Ireland. Additionally, he has been on the board of companies with operations in Argentina, Azerbaijan, Barbados, Kazakhstan, and Russia. He has served on numerous Public, Private and Not for Profit Boards across a number of industries.
Ross has been active on several industry Boards and committees including the Canadian Association of Petroleum Producers (CAPP) and The Schulich School of Engineering Industry Advisory Council at the Schulich School of Engineering.
Brian is a seasoned Cleantech entrepreneur with a proven history of successfully bringing complex water technologies to the market. With over 25 years of experience, he has led various organizations to achieve significant milestones in the industry.
Having started as the founding CEO of the Pressure Pipe Inspection Company (PPIC) and later taking the helm at the Water Technology Acceleration Project (WaterTAP), Brian’s entrepreneurial spirit has been instrumental in driving innovation and growth within the sector.
He is an active investor in the cleantech sector and has served on many boards including the Ontario Clean Water Agency.
Actively engaged in industry associations like AWWA, WEF, IWA, and ASCE, Brian enjoys collaborating with fellow professionals to promote advancements in the field.
Brian holds an undergraduate degree and a PhD in Physics from Queen’s University, which has provided him with a solid technical foundation. As a member of the Institute of Corporate Directors, he brings valuable insights to corporate governance.