Key Takeaways:
- Westport residents are facing difficulties in obtaining standard insurance due to the town’s flood risk, with many insurers refusing to take on new customers or charging elevated premiums.
- Some residents are turning to brokers or specialist insurers, such as FMG, to secure insurance policies.
- The issue of unaffordable or unavailable insurance in Westport is not new, but has escalated in recent years, particularly after the 2021 flood.
- Experts warn that insurance will become increasingly expensive or impossible to get for some properties as climate change-driven weather events continue to rise.
- The Buller District Council has endorsed a flood protection plan, but some residents feel that progress has been limited.
Introduction to Flooding in Westport
Westport, a town on the West Coast of New Zealand, has been repeatedly flooded over time, with the most recent significant event occurring in July 2021. The flood left more than 100 homes uninhabitable, and the town is still feeling the effects. One of the main concerns for residents is the difficulty in obtaining standard insurance due to the town’s flood risk. Many insurers are refusing to take on new customers or are charging elevated premiums, making it challenging for homeowners to secure affordable insurance.
The Struggle to Secure Insurance
Glenys Elley, a lifetime local, recently experienced the difficulty in securing insurance firsthand. Her broker was unable to secure a new policy for her in 2024, and she was quoted nearly double her previous premium. After calling insurers herself, Elley was able to get a quote from specialist rural insurer FMG, for a lower premium than her existing policy. This experience is not unique to Elley, as many residents are facing similar challenges in obtaining insurance. Taryn Sweyt and her partner also struggled to secure insurance for their first home, which is located in a low-lying area of Carters Beach. Despite the house being on higher land and not having experienced flooding, they were unable to get a policy from any of the major insurers.
The Role of Specialist Insurers
Specialist insurers, such as FMG, are playing a crucial role in providing insurance to residents in Westport. FMG’s head of underwriting, Jonathan Cleland, stated that the company takes a case-by-case approach when considering individual client circumstances aligned with their underwriting risk-appetite. This approach has allowed FMG to offer insurance to residents who may not be able to get coverage from traditional insurers. Locals are recommending FMG and other specialist insurers in Facebook community pages, highlighting the importance of these companies in providing insurance to residents in high-risk areas.
The Impact of Climate Change
The issue of unaffordable or unavailable insurance in Westport is not new, but it has escalated in recent years, particularly after the 2021 flood. Experts warn that insurance will become increasingly expensive or impossible to get for some properties as climate change-driven weather events continue to rise. Monitoring data published by Treasury has shown that insurers are starting to hone in on flood-risk areas, charging elevated premiums and removing some online availability. This trend is likely to continue, making it essential for residents to explore alternative insurance options, such as specialist insurers or brokers.
The Response from Local Authorities
The Buller District Council has endorsed a flood protection plan, which includes opening up lower-risk land away from the existing town for development, building 17 kilometers of stopbanks, and improving flood warning systems. While this plan is a step in the right direction, some residents feel that progress has been limited. West Coast Regional Council chief executive Darryl Lew stated that two sections of stopbank have been completed, but long-time Westport real estate agent Charlie Elley believes that many residents feel that there has been limited progress. Elley advises buyers to ask sellers for their insurance information so that they can request a policy transfer, highlighting the importance of flexibility and creativity in securing insurance in high-risk areas.
Conclusion
The issue of unaffordable or unavailable insurance in Westport is a complex one, with no easy solutions. However, by exploring alternative insurance options, such as specialist insurers or brokers, residents can secure the coverage they need. It is essential for local authorities to continue working on flood protection measures and for residents to be proactive in seeking out insurance solutions. As the risk from climate change-driven weather events continues to rise, it is crucial for residents, insurers, and authorities to work together to find solutions to this growing problem.
