Insurers begin counting cost of Cyclone Hale

Thursday, 12 January 2023

Cyclone Hale caused flooding and damage to homes as it swept through Northland, the Bay of Plenty and Auckland.

Insurers are beginning to count the cost of Cyclone Hale as hundreds of homeowners begin to make claims.

IAG, which owns the State and AMI brands, had 171 calls from homeowners with properties damaged by the cyclone by early Thursday afternoon, but the insurer said it was expecting more.

AA Insurance had so far had 84 claims, and was also expecting to get more after the cyclone swept through the country on Tuesday and Wednesday.

Starting as a tropical cyclone near New Caledonia on Sunday, Hale was downgraded by MetService by the time it reached New Zealand.

* 'It could be you': Insurer warns wild weather claims much more common

The incredible images show the power of the cyclone that swept through the region.

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But it brought heavy downpours to the north and east coast regions, causing flooding, slips, road closures and a big clean-up for those at the centre of the deluge.

Wayne Tippet, executive general manager for claims at AMI, State and NZI, said claims had come from Northland, Auckland and the Bay of Plenty, with the majority relating to leaking roofs due to heavy rainfall.

“So many New Zealanders suffered from wild weather in 2022, and I’m sure this is the last thing people want to start the new year,” he said.

“We have our assessors and suppliers on standby across all areas impacted by Cyclone Hale,” Tippet said.

“We will have our assessors on the ground in affected areas as soon as it is safe to do so.

“We encourage customers who are safe and out of immediate danger to contact us online or over the phone, so we can provide essential support such as emergency temporary accommodation, and of course, to lodge any claims,” he said.

Tom Bartlett, head of home claims at AA Insurance, said: “We anticipate further claims over the coming days, especially in the Coromandel region.

“The majority of claims have been for fences and garden sheds falling over, and water leakage on properties.”

Tippet said that often during a storm or flood, it was difficult for homeowners to know the full extent of damage to a home, business, vehicle or contents.

“We encourage AMI, State and NZI customers to get in touch once they have had a chance to assess the damage, and it is safe to do so,” he said.

Insurers have been experiencing a rising cost of weather-related claims. IAG launched an online “wild weather tracker”.

From September 2021 to February 2022, IAG companies recorded claims from ten major storms, including ex-tropical cyclone Dovi in February.

During this period, the insurer received 8293 weather-related claims, an increase of 32% compared to the period from September 2020 to February 2021.

The cost of repairs has also risen as a result of high building cost inflation.

Banks have announced packages of help for affected customers.