With home buying season on our doorsteps, Natural Hazards Commission Toka Tū Ake (NHC) wants homebuyers to go into a purchase with their eyes open about natural hazards, so they can make an informed decision on a new home that’s right for them.

“Every home in New Zealand comes with some level of natural hazard risk, so we’ve released a new one-page buying a home checklist which is great way for house-hunters to make sure they are ticking all the right boxes when it comes to natural hazard risk,” says NHC Toka Tū Ake Chief Resilience and Research Officer Jo Horrocks.

“We are highly exposed to natural hazard risks in New Zealand, including a range of geological hazards like earthquakes and volcanoes. We also face increasing exposure to severe weather events and the resulting hazards such as flooding and coastal inundation.

“We know that 84% of people who have recently bought or are considering buying a property have natural hazard risks on their minds, but we don’t know if this translates to ticking all the essential natural hazard boxes.

“This includes getting a pre-purchase inspection from an accredited provider, understanding what insurance is available for the house and especially for the land, as well as looking at the Natural Hazards Portal before buying a new home,” says Jo.

The Natural Hazards Portal shows the locations of more than 360,000 claims NHC Toka Tū Ake has settled since 1997. Users can zoom on the map, and it tells them where, when and roughly why there was natural hazard damage, so the buyer can make an informed decision when purchasing a property.

“You should also check local council files on the property that might help you understand any natural hazard risks associated with the property’s location, and to ensure any building or construction work has appropriate consents.

“In addition, investigate what features of a home might make it more at risk of damage from natural hazards, such as older chimneys, secure foundations, and structurally important retaining walls.

“Then, consider the potential cost of any construction or repair work needed and then talk with your lawyer about how this might affect your offer,” Jo says.

Jo said the process of house hunting was also an important time to build insurance understanding, such as knowing the total amount it would cost to rebuild the house including demolition costs, debris removal, professional fees and council fees to set your sum insured.

“We know that only 1 in 3 New Zealanders confidently understand their insurance, but we also know that when people are buying a home, they are more likely to pay attention to the details. We urge home buyers to pay attention to the limits of NHCover for land. It is often only a contribution to repairs, so it’s important to understand the risks to the property and think about how you’d cover any shortfall in cover if the worst happened.”

“We all have different appetites when it comes to level of risk – including risks posed by natural hazards,” says Jo. “Doing due diligence on a property will ensure a home is resilient as it can be in the face of the natural hazards our country is prone to.”

Find the full buying a home checklist here: https://www.naturalhazards.govt.nz/our-publications/buying-a-home-checklist/

About the Natural Hazards Commission

The Natural Hazards Commission Toka Tū Ake exists to help New Zealanders prepare for and recover from the impact of natural hazards. One of the ways we do this is by providing natural hazards insurance for homes and residential land.

Homeowners have access to our scheme if they have an insurance policy with fire cover. The premium paid to insurers includes a Natural Hazards Insurance Levy, which is the amount homeowners pay for this cover.

For landslide damage, NHCover covers up to the first $300,000 of damage to an insured home, and private insurance covers the rest up to the policy limit. NHCover also provides some limited cover for the land 8 metres around the insured home and 60 metres of driveway from the home, up to the value of the insured, damaged land. Homeowners can’t buy extra land cover from their insurer, so it’s important to understand which parts of land are included, and what is not covered.

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