Insurers brace for storm claims
Insurance claims for damage caused by tropical storm Fehi battering most of the country this week is expected to run into the millions of dollars, the Insurance Council says.
Chief executive Tim Grafton said it was difficult to say exactly how many claims would be made because the damage was not confined to any one area, but it would be ‘‘substantial’’, running into millions of dollars in the next few days.
‘‘We won’t have a clear estimate for the dollar value of claims for weeks out. Our priority now is to urge those affected to lodge claims with their insurance providers as soon as possible,’’ he said.
States of emergency had been declared in Buller and Dunedin, and evacuations had been triggered in the West Coast and Nelson-Tasman regions.
People affected should take photos of damage and keep receipts for repairs to support any insurance claim.
People should also put as much of their home contents out of harm’s way as possible, secure heavy outdoor objects, and park vehicles in garages if you can.
‘‘If you have electronics you can’t move in low-lying areas, switch them off at the wall. Make sure you can access emergency equipment like torches and portable radios at all times,’’ he said.
Residents in all parts of the South Island have been told to stay inside and away from beaches and exposed areas.
Insurers have paid more than $265 million for serious weather events in New Zealand in the past 18 months.
New Zealand has been ranked at a ‘‘high hazard’’ level for flooding and cyclone events by the Global Facility for Disaster Reduction and Recovery, which evaluates the threat of natural disasters in countries around the world.
BusinessNZ chief executive Kirk Hope said it was important for businesses to be prepared for the aftermath of a disaster situation by having business continuity insurance.
‘‘New Zealand is prone to a number of natural disasters like earthquakes or flooding, and it would be prudent for enterprises to protect their business income against the unforeseen.’’
Grafton said communities needed to prepare for the long-term effects of climate change. ‘‘Every dollar spent in predisaster adaptation measures saves many more after an event.’’