The property market’s most burning question: What disaster could affect my home
Saturday, 25 April 2026
You’re looking at a new house. It’s everything you want, the price is workable - but one question lingers. Is it safe?
Increasingly, our safety during extreme weather events or earthquakes are becoming deciding factors in buying a home.
A recent Urban Advisory housing survey found safety from natural hazards ranked among buyers’ top concerns, cited by 76.3% of respondents.
That shift comes as storms become more frequent, with insurers now recording nearly one major storm every eight days between autumn 2025 and summer 2026 - and a corresponding surge in claims.
Read more:
Wellington storm damage could reach hundreds of million of dollars
Parts of Wairarapa received more than 250mm of rain in 48 hours
Earlier in the year, Ray White Group chief economist Nerida Conisbee analysed the impact of natural disasters on property markets and found they could lead to different market outcomes.
While her research focused on Australian markets, the findings were relevant for New Zealand too. After a natural disaster some locations recover and go on to perform strongly, while others experience lasting demand constraints.
“It’s often not the disaster itself that determines long-term price outcomes, but whether repeated events alter perceptions of ongoing risk and future viability.”
The speed and strength of recovery depends on key factors, including insurance coverage, government response, rebuild quality, location desirability and broader market conditions, Conisbee said.
But how do you know if a house has had previous damage and how to you prevent it and are there particular risks in your area?
Natural Hazards Commission Toka Tū Ake chief resilience officer Jo Horrocks said every home in New Zealand came with some level of natural hazard risk.
It’s all about doing your homework whether you are serious about that cute historic cottage or thinking about a new build.
“For most people, their home is their biggest investment, so it’s important to understand the natural hazard risk that home might face.
That means doing checks upfront — getting a pre-purchase inspection from an accredited provider, understanding what natural hazard insurance is available for both the house and the land, and using the Natural Hazards Portal to understand the risks before you buy, she says.
So what can buyers - and homeowners - actually do?
There is no shortage of information, but knowing where to look is key.
The Wellington Regional Emergency Management identifies flooding as the most frequently occurring natural hazard in the region.
Flooding comes in more than one form. There is the traditional risk from rivers and streams — but more often, it is “pluvial” flooding, where intense rainfall overwhelms stormwater systems and water pools across streets and properties and essentially follows the path of least resistance.
Flood hazard maps from Greater Wellington Regional Council allowed buyers to search by address and identify known risks from rivers and streams. Wellington City Council overlays similar data in its district plan.
Horrocks said the portal allowed searches by property or region to see what hazards affect a home and make more informed decisions. More than 170,000 visits have been made to the portal in the last year.
And you can check if a property has had a previous natural hazard claim.
Real estate agents also play their part. Managing director of New Zealand Sotheby’s International Realty Wellington Glen Jones ) said his rule of thumb was to disclose.
“And generally if you feel it is something that you would like to know if you put your feet in the shoes of a buyer, then again, disclose.”
They did need authorisation from the vendor to disclose, however, he said if they refused then they were obligated to walk away from the listing,
“We have done that many times before, and we would have no hesitation doing so again.”
But the most comprehensive snapshot comes from a Land Information Memorandum (LIM) - a paid report that flagged known hazards associated with a property, including flood zones.
Identify the risk
Wellington architect James Solari said the key was to identify risk as early as possible - whether buying, building or renovating.
“Is it flooding, ponding, inundation from overloaded pipes - or a torrent running off a hillside? The response depends on the problem.”
He said resilient design could make a significant difference, both in reducing damage and preserving property value. Materials like concrete can better withstand water and be dried out, while design choices can ensure that if water enters a building, it can also exit safely.
Other considerations - like slope stability and geotechnical factors - are particularly important in Wellington. In some cases, existing homes on piles can be raised to reduce risk.
But risk mitigation comes at a cost, and it is not always covered.
Insurance is becoming an increasingly critical - and complicated - piece of the puzzle. In some high-risk areas, policies may exclude certain types of damage, or come with significant limitations.
A recent case considered by the Insurance & Financial Services Ombudsman Scheme highlighted the limits of insurance in a changing climate.
After severe flooding damaged their home, a family sought to have their rebuilt house elevated to a higher floor level to better protect against future events. Their insurer agreed to rebuild - but only to the minimum level required for council consent.
The family argued that raising the floor further would reduce future risk and avoid the possibility of a hazard notice being placed on the property title — something that could affect insurance or mortgage options.
However, because there was no formal requirement from the council to build higher, the Ombudsman found the insurer was not obliged to cover the additional cost.
Insurance & Financial Services Ombudsman Karen Stevens said the case reflected a growing tension.
“Many people want to future-proof their homes against flooding,” she said.
“But insurers aren’t required to fund upgrades or improvements that go beyond what is required under the policy.”
Solari said part of the beauty of living in New Zealand was the natural environment and that included the forces thrown at it.
“There are solutions to the challenges that are there. The more aware we are of hazards and their risks, the better position we are in to do something about them.”