Insurers State, AMI and NZI have now logged 21,000 claims from January flooding
Tuesday, 14 February 2023
Insurer IAG says its AMI, State and NZI operations have now had more than 21,000 claims from the Auckland and North Island floods in late January.
It was now getting claims coming in for damage to homes, cars and household contents from customers affected by Cyclone Gabrielle.
The insurer says 57% of its claims are on house insurance policies, which generally cover carpets and other fixed floor covering.
A further 21% of its claims were on contents insurance policies, indicating they were for damaged chattels like furniture and whiteware, and 16% were claims on motor vehicle policies.
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Thousands of cars and some motorbikes are expected to be written-off as a result.
The Waka Kotahi NZ Transport Agency searchable damaged vehicles database shows more than 220 vehicles written off since the late-January flooding.
Amanda Whiting, chief executive of AMI, State and NZI, said the recent flooding, and the arrival of Cyclone Gabrielle had been heart-breaking and hugely disruptive for those affected.
“We are working our way through the flooding claims as quickly as possible, while also processing claims from those affected by Cyclone Gabrielle,” she said.
“Some claims will be settled quickly, if not already, but some will take time as each customer’s situation is unique.”
She said that so far IAG companies had paid out over $23 million in claims following the flooding in January.
The company was working to minimise the surge in demand for repair work, which could lead to delays in people getting their homes repaired.
“We are actively working with our partners to minimise these challenges, however, there may be some delays as we work through this,” Whiting said.
”We currently have 316 teams of builders on the ground stripping out homes, and we are focussed on expediting the claims process and closing claims for our customers as soon as we possibly can.”
She said the scale of the events in the past two weeks was something the country had not seen since the Kaikōura earthquakes of 2016.
As well as a surge in demand for tradespeople and building supplies, prices for secondhand cars are expected to surge as people who lost cars in the flooding are paid out, and seek to replace them.
The insurer yesterday posted a large rise in its first-half profits, but says an increase in extreme weather events is one of the reasons why it is increasing the rate at which it is lifting premiums on house, car and contents insurance.
IAG is urging people to make claims online, if they can.
Those who bought their insurance through an adviser should seek help in lodging their claim from them.
IAG has also opened “disaster hubs” where people can get help, and information.
The insurer is calling on all its policyholders to prioritise their safety over securing their properties, but says that, when safe, they can make temporary repairs, such as boarding up broken windows.
It says they should make sure the power has been turned off, if their homes have been water-damaged.
It says policyholders should make their claims as soon as possible, especially if their home becomes uninhabitable, and the insurer needs to arrange temporary accommodation for them.
People should take photos and videos of their damaged properties to help with claims, it says.
When starting clean-ups, people should treat all water as “blackwater”, which is flood water that contains sewage. They should wear heavy-duty gloves, boots, and a face mask.
People should not attempt to drive water-damaged cars, it says.