By the numbers: Auckland flooding, Cyclone Gabrielle claims reach $2.47 billion

Tuesday, 4 April 2023

West Aucklanders gather in school hall to call for their homes to be bought out after devastating flooding.

The Auckland Anniversary Weekend storm followed by Cyclone Gabrielle caused massive damage leaving homeowners and insurers counting the costs.

Together the two extreme weather events have topped the claims costs insurers paid after the Kaikōura, according to figures released on Tuesday by the Insurance Council Te Kāhui Inihua o Aotearoa.

$396 million

Insurers have paid out $396 million so far in claims for damage done to homes, household chattels, cars, and businesses in the Auckland Anniversary Weekend flooding and Insurance claims from Cyclone Gabrielle and Auckland flooding hit $890 million

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Households and business owners have made 96,586 claims as a result of the two events.

$2.47 billion

In total those claims are for damage estimated at $2.47 billion, though not all damage caused in natural disasters is insured.

Just over $160m more claims by value have been lodged with insurers for damage caused by the Auckland Anniversary Weekend flooding, than in Cyclone Gabrielle, however, just under $93m of the insured damage done by Cyclone Gabrielle was in Auckland.

The Auckland Anniversary Weekend flooding did more damage to vehicles, with motor claims of $115m compared to $86.5m following Cyclone Gabrielle.

There were 45,000 claims worth $2.27b as a result of the Kaikōura earthquake, Grafton said.

14,124

Insurers had so far paid out over 14,000 claims for damage caused by the two extreme weather events, council chief executive Tim Grafton said.

Many of those claims were straightforward claims involving cars having been written off, or household contents damaged beyond saving by contaminated floodwater.

Cyclone Gabrielle caused nearly $600m of insured damage in Hawke’s Bay. Homeowner Steve Wheeler had silt up to two metres deep blanketing his Esk Valley property, plus thick slash which came down the Esk River and stopped at his lounge windows.

Grafton warned that the remaining claims would take time to work through.

“Many motor and contents claims are straightforward to settle, relining house can take months, full rebuilds over a year. The most complex claims, typically with land issues, can take longer still,” he said.

Insurers were “in this for the long haul”.

Six

This is the number of floods Amrita Banger told a public meeting last month that she and her husband had suffered at their West Auckland home since August 2021.

She is among homeowners in Auckland and Hawke’s Bay who may not be permitted to rebuild as the Government is considering a “managed retreat” from areas too risky to be rebuilt on.

Talks are underway between the Government, insurers, banks and homeowner groups on how that could work.

At the meeting in March of the West Auckland Is Flooding group homeowners, including Banger, called on the Government to buy them out of their homes.

“You cannot move on from a trauma,” Banger said.

She said the family was mentally and financially drained.

“We can’t do this any more,” she said.

$1.31 billion

This is the total value of the claims made for damage from the Auckland Anniversary Weekend floods.

By number, half the claims for the Auckland event had been settled with payouts.

Grafton said 26,283 claims out of 51,936 for the Auckland flooding had been settled, but the pay-outs of just over $248m represented just under a fifth of total claims by value.

$1.155 billion

This is the current estimate of the claims cost to insurers of damage from Cyclone Gabrielle.

Grafton said 6819 claims of the 44,650 claims made after Cyclone Gabrielle had been settled with pay-outs totalling just over $147m.

Though quick progress had been made on simple claims, Grafton said more significant, complex and expensive claims took longer to settle.

“These can be complex and time-consuming to deal with, and it’s important to be transparent with everybody about that,” he said.

CORRECTION: An earlier version of this story said 33,000 claims had been settled. This was incorrect information provided by the Insurance Council. Updated April 4, 3.24pm.