NHCover scheme offers partial coverage for land damage

A recent survey indicates more than half (56%) of insured New Zealand homeowners say they expect full insurance compensation for natural hazard damage to their land. The Natural Hazards Commission Toka Tū Ake (NHC) is therefore urging people to understand the limits to their cover to avoid disappointment.

The national scheme provides cover for damage to houses up to $300,000 and provides some limited cover for damage to land. Both are set by clear limits in legislation and the contribution for land cover is standalone - you can’t top it up with private insurance.

“Land cover is specifically designed as a contribution payment, not full cover,” explains NHC Chief Executive Tina Mitchell. “The limits of cover available ensures every homeowner across the country gets access to some protection, and helps keep the scheme affordable as it is funded by homeowners.”

“We know damage from landslides or other hazards can be expensive to remediate, and sometimes there is a difference between the cost to repair, and the contribution allowed for under the scheme. We want people to know this in advance, so they understand the limits of their cover before a disaster occurs,” says Tina.

“When you understand that your landcover is limited, you can take action. We recommend learning about the risks to your property and seeking expert advice from builders or engineers about how to protect your land from damage. For example, strengthening retaining walls and considering how waterways might impact your property are good things to check regularly."

“If you do think your house is in a risky zone, you may want to allow for possible recovery costs in your financial planning. The scheme is a good contribution, but it is not designed to cover all costs,” explains Tina.

NHC provides a first layer of insurance for natural hazards damage to insured residential homes and some land. Additional cover for your house is then determined by private insurance policies, but there is no other cover available for land.

“New Zealand will continue to experience damaging natural hazard events, so it is important to understand the risks in your neighbourhood and what you are covered for. and while these can be unexpected, what you’re insured for shouldn’t be. Having this knowledge now will help your planning for if a natural hazard affects you and your property,” Tina says.

NHC has a list of four things you can do to be prepared for a natural hazard:

• Learn about the risks to your property, and how the land around you might be affected.
• Check the limits of cover for your house and your land (see this page for more specific information).
• Reduce your risk by seeking expert advice from builders, engineers, or our website.
• Plan for how you'd manage after an event - insurance claims and rebuilding takes time.