Affected by Cyclone Gabrielle? Know your rights, Consumer NZ says

Tuesday, 21 February 2023

Know your rights when it comes to dealing with utility and insurance companies after a natural disaster.

Consumer NZ has issued advice for those affected by Cyclone Gabrielle, reminding people of their rights when dealing with power companies and telcos after a natural disaster.

Rebecca Styles, Consumer NZ’s research team leader, said as people faced the daunting task of cleaning up and making claims for damage, there were a number of things they should be aware of.

“We want to help by equipping New Zealanders with information about their rights.”

Insurance tips

Your insurance policy may cover you for unexpected extras that you didn’t know about.

* EQC has had nearly 2300 claims from after flood and cyclone, and the number is still rising

* Insurance claims after flood and cyclone 'absolutely unprecedented'

“If you have comprehensive house insurance and need to find temporary accommodation, you may be able to claim towards the cost of boarding fees for your pets,” Styles said.

The council has already red stickering 175 homes in Auckland after the flooding.

Many communities lost power resulting in inedible food in fridges and freezers, and contents insurance could cover any food you had to throw away because of power outages.

“If possible, take photos and make a list of all the food you had to throw out. This will make the claims process easier,” Styles said.

You could also be covered for any contents lost or damaged away from home.

It is important to contact your insurer as soon as possible. Collect as much evidence as you can to back up your claim. This could be via videos and photos, but only if it's safe to do so.

“If your property was damaged in an earlier event, and gets damaged again soon after, record the new damage and report it to your insurer,” she said.

A free resolution service has been set up by the Government to help people with insurance claims in the wake of the Auckland floods and Cyclone Gabrielle.

“The New Zealand Claims Resolution Service (NZCRS) would provide support with insurance claims to avoid disputes, resolve issues and ensure claims are settled as quickly as possible.

'We encourage any homeowners who have concerns about their insurance claims, or the claims process, to contact NZCRS.”

Despite being less than two months into 2023, insurers fear the year has topped 2022’s record for extreme weather claims.

IAG, which owns the AMI, State and NZI Insurance brands, has so far had 2300 claims from property-owners as a result of flooding and damage from Cyclone Gabrielle.

That came on top of more than 21,000 claims from the Auckland and Northland floods at the end of January.

Tim Grafton, chief executive of the Insurance Council of New Zealand Te Kāhui inihua o Aotearoa, said claims would be in the hundreds of millions of dollars.

Earthquake Commission (EQCover) for flood and storm damage

If you have private house insurance which includes fire insurance, you have EQCover, Styles said.

EQCover provides some cover for damage to residential land if your property is damaged in a storm or flood. Contact your house insurer, it will manage any EQCover.

EQCover is provided for land under or within 8 metres of a home as well as some outbuildings, such as a shed or garage. It will cover the cost to repair damage to the insured land, or the value of the land, whichever is less.

Where a landslip has occurred, EQCover will cover damage to the home or surrounding land that has been caused by the landslip.

Electricity rights

People who need equipment powered by electricity to survive are known as medically dependent consumers.

If you or someone in your house is medically dependent it is really important that you let your electricity retailer know as soon as possible.

“Your electricity retailer can’t guarantee your electricity supply in a severe weather event but, for medically dependent consumers, your retailer should make special efforts to minimise the risk of unexpected power outages,” Styles said.

Power lines

The responsibility to repair and maintain power lines depends on where the damaged lines are.

At your property there would be a point of connection where your cable or overhead line joins the lines company’s, this is usually at your property boundary.

“You are responsible for the maintenance of the line from the point of connection to the meter box. You may also be responsible for lines on your private land, like farmland or a private access way,” Styles said.

“You can ask your lines company to fix your damaged lines, but it may charge you.”