Hailstorm bill over $83m; one of most costly payouts
The cost of the hailstorm that pelted Timaru in November is the third largest weather-related insurance cost event in New Zealand this century.
Provisional figures show more than $83 million has been paid to customers by insurance companies.
‘‘The destructive power of hailstorms is seldom experienced, but the Timaru event on November 20 showed us the fierce effect of these storms when concentrated on urban areas,’’ Insurance Council of NZ chief executive Tom Grafton said.
Hail-damaged vehicles accounted for 9420 claims. In the commercial sector, 650 claims were filed worth $6.7m. \
There are no cut-off dates for haildamage claims but people need to file as soon as they can, Grafton said.
‘‘We urge people to claim as early as they can so their insurer can help them as quickly as possible, and make arrangements to assess the damage or losses and progress their claim.
‘‘Doing this also helps to reduce further exposure to damage that they may not be covered for.’’
The hailstorm was the third most destructive payout-wise this century behind the lower North Island storms in February 2004 which paid out $148.3m, and April 2017’s Cyclone Debbie ($91.5m).
Grafton said the figures reinforced that with climate change the increasing frequency and severity of storms in New Zealand.
‘‘Since 2014 we have seen a significant increase in events causing damage in the hundreds of millions,’’ Grafton said.
‘‘It is clear that we must adapt to the changes we are seeing and take steps to reduce risks where possible to minimise the social and economic cost and impact to us all.’’
South Canterbury Chamber of Commerce chief executive Wendy Smith said the $83m claim figure came as no surprise as they were aware of the scale and the numbers of vehicles and properties that had been damaged.
‘‘Weather and associated extreme incidents are far reaching and exactly why we have insurance. This was well tested after the Christchurch earthquakes and other extreme weather conditions that New Zealand has experienced.’’
Smith advised businesses and the public to always they took out the right level of cover as it was an important part of financial planning for both business and family.
‘‘People need to protect their assets and their well being as far as possible and the right insurance cover can make the difference between a business staying afloat or as has been the case for a few businesses going into receivership or simply ceasing the ability to trade,’’ Smith said.
HVS Motors Timaru owner Hamish Gardyne who worked as a receiving agent for Turners Cars in the aftermath of the storm has previously said December was the ‘‘craziest’’ time of the year for writeoffs.
‘‘It’s down to about five cars a day now being handed in for total loss. In the pink of it we got to 60 a day that were getting handed in.
‘‘I’ve handled thousands of units that are being total write-offs. I work with Tower, AA and Vero insurance companies. A lot of their stuff got done in December, they were pretty quick,’’ Gardyne said.
‘‘It is clear that we must adapt to the [climate] changes we are seeing and take steps to reduce risks where possible to minimise the social and economic cost and impact to us all.’’ Tim Grafton
Insurance Council chief executive