Insurers brace for expensive year

The South Canterbury floods will contribute to what could be the most expensive year for weatherrelated insurance claims so far this century, it has emerged.

The chance was confirmed as a pair of district councils tallied a repair bill that by Tuesday afternoon was climbing towards $1 million.

The Waimate District Council estimated its repairs could cost $400,000. The Timaru District Council on Monday estimated its repairs were near $500,000.

The weather that triggered floods across South Canterbury, wider Canterbury and Otago from last Friday has prompted a steady stream of insurance claims.

By Tuesday, it seemed clear 2017 could be the most expensive year of the new millenium for weather-related insurance claims.

Insurance Council chief executive Tim Grafton said it was too early to say how much the event would cost but he expected it would generate about 2000 claims.

It would be less expensive than either Cyclone Debbie or Cyclone Cook, in April, or the storm branded the ‘Tasman Tempest’, which inundated Northland, Auckland and the Waikato in March.

However, it would add significantly to the 2017 tally.

‘‘In the first four months of this year the weather-related losses have already roughly matched the other two big years of 2004 and 2013,’’ Grafton said.

The total number of claims leading insurance group IAG has received to date is 540, which includes 505 domestic claims and 35 commercial ones.

An IAG spokeswoman said the group received a steady flow of new referrals on Monday. That slowed on Tuesday and it was too early to break claims down by region.

IAG owns 47 per cent of the general insurance market in New Zealand, and represents State and AMI insurance, as well as NZI.

‘‘We are unable to break this down geographically at this stage and are looking to break down the type of claims,’’ the IAG spokes- woman said.

The storm struck on Friday, with torrential rain and high winds leading to a state of emergency being declared in Canterbury and Otago.

Among those affected was Plains Irrigators, where technician Theo Joubert said the company had not lodged an insurance claim yet, and was still working through all the damage. Its Washdyke premises was flooded. There was some damage to radio equipment, a fridge, the carpets and the walls, as well as books which were soaked, but on the whole the business had got off lightly, he said.

‘‘It’s not too bad.’’ Staff would be cleaning up for the next week, Joubert said. The Timaru District Council has estimated its repairs will cost $500,000.

Environment Canterbury had yet to detail its costs, but the Waimate District Council seemed set to tackle an estimated $400,000 in repairs.

Several roads around the district remained closed and numerous others had been scoured by floodwaters.

Waimate District Council roading manager Rob Moffatt said the council was still assessing infrastructural damage but early estimates suggested it could cost $400,000 to fix.

The council aimed to have all roads open and passable this week but there was some longerterm resurfacing work which could take one to two months.

Meyers Pass Rd and Hakataramea Pass Rd were still closed mid-afternoon on Tuesday from Round Hill Station to the boundary of the Mackenzie District due to snow. McHendrys Rd was four-wheeldrive only.

The Hakataramea Valley was the worst-affected area in the district. Farm Rd and Scott’s Bridge Rd were the worstaffected there, and closed due to bridge approaches being washed away.

McHendrys Rd was extensively damaged.

In other parts of the district there were numerous isolated areas of damage to roads.

Council civil defence controller Carolyn Johns said the Waihaorunga water scheme intake was damaged.

The council was not aware of any businesses affected by flooding.

MetService is forecasting another front on Thursday, expected to bring heavy rain to Canterbury, with showers continuing on Friday. also