Auckland homeowners eligible for buyouts urged to settle with insurers

Auckland homeowners eligible for buyouts urged to settle with insurers | Insurance Business New Zealand

Catastrophe & Flood

Auckland homeowners eligible for buyouts urged to settle with insurers

Council has been advising property owners that they fall under category 3

Catastrophe & Flood

By
Kenneth Araullo

In the wake of extreme weather events earlier this year, the Insurance Council of New Zealand (ICNZ) is actively encouraging Auckland homeowners eligible for a government buyout to promptly engage with their insurers to finalise claims.

As the city continues to deal with the aftermath, a steady stream of property owners is being informed by the council that their residences fall into the critical “category 3” bracket.

This category denotes homes that have been significantly impacted by the storm, and for which a buyout offer will be calculated considering any insurance payouts already received, as well as deducting a 5% homeowner contribution.

Sarah Knox, the acting chief executive of the ICNZ, said that it is important that homeowners notify their insurers about their categorisation.

“We’re encouraging homeowners in Auckland to contact their insurer and let them know because we don’t have a line of sight to the category 3 homes in Auckland at the moment,” Knox said in a report from the RNZ.

Knox also reassured homeowners that delaying contact would neither benefit nor disadvantage them financially but urged for timely communication with their insurance providers to expedite the settlement process. Insurance firms are giving priority to claims involving category 3 properties, with firms noted to have settled 80% of dwelling claims stemming from the Auckland Anniversary weekend floods.

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