4 November 2013

Insurance Concerns in Christchurch

Property Council supports the Labour Party’s initiative to address the housing crisis in Auckland and Christchurch.

While Property Council is pleased with Opposition Leader David Cunliffe’s announcement to build 10,000 homes in Canterbury over four years, there are serious questions that need to be answered.

Mr Cunliffe’s comments regarding using red-zoned land and properties as a stop-gap measure raises crucial concerns regarding insurance cover.

Property Council chief executive Connal Townsend says “insurance companies could possibly be reluctant to cover properties they perceive to be earthquake-prone”. Future insurers of these properties may not easily acquire reinsurance should they choose to cover buildings in the red zone. This can potentially create a whole host of problems.

“While red-zoned properties may be deemed safe by the Government, can the same be said about the land?” said Mr Townsend.

“Can sufficient guarantees about public safety be made that will satisfy insurance companies?”

Property Council acknowledges Labour’s KiwiAssure insurance scheme but questions remain around whether reinsurance will be a possibility with current international risk perceptions for Christchurch.

Property Council encourages continued efforts in resolving the housing crises in New Zealand’s two major cities and will work with any party offering a viable solution to these.

About Property Council New Zealand
Property Council is New Zealand’s commercial property voice. Property Council represents New Zealand's office, industrial, retail, property funds and multi-unit residential property owners, investors and managers. Property Council’s branches throughout the country represent some of the largest commercial property portfolios in Auckland, Waikato, Bay of Plenty, Wellington, East Coast/Hawkes Bay and the South Island and Otago region, the value of which exceeds $30 billion.

ENDS

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