Homeowners in Napier face rising insurance costs, with some seeing premiums triple since Cyclone Gabrielle hit in early 2023.
Philip Dol, a resident of Te Arawa, had his insurance premium increase from $2,000 to over $5,000, with a recent quote approaching $8,000. After analyzing a flooding hazard map from the Hawke’s Bay Regional Council, Dol discovered that important information about his elevated property was missing, which led to the high premium.
He expressed concern about the rapid increase in costs and wondered how high it could go in the future. Upon contacting his insurers, he learned that new maps had categorized his property as high risk for flooding and coastal inundation. However, he found that only a small part of his driveway was in a designated risk zone.
Dol pointed out that many homes were affected based on a small portion of their property, which seemed unfair. He had also made improvements to his property for safety but was advised to challenge the council on the hazard maps.
As a result of his efforts, both his and over 200 nearby homes were removed from the flood hazard maps, leading the insurer to reduce Dol’s premium by $880. He stressed the need for transparency regarding the data insurers use to set premiums, as many homeowners struggle with rising bills.
Karen Stevens, from the Insurance and Financial Services Ombudsman, stated this issue is part of a larger problem with the data insurers rely on for decisions. She encouraged consumers to challenge increases based on hazard mapping. While accurate mapping is critical, it often doesn’t reflect individual property risks.
Stevens acknowledged that the reliance on local body mapping for risk assessments has changed due to climate change concerns. She urged homeowners to understand their risks and take action if they believe their assessments are inaccurate—like Dol, who felt his challenges could lead to better outcomes for others.
