IAG has confirmed that it is reinstating an insurance embargo for new home, contents and commercial insurance in the Lower North Island and Upper South Island regions following the renewed seismic activity in this area.
It is standard practice following an incident such as the Seddon earthquake for insurers to suspend the taking on of new business for a period in order to focus on existing customers’ claims and better understand the risk posed by aftershocks.
The embargo will be regularly assessed in response to the latest information available about the seismic activity.
This embargo means no:
• new business, or
• mid-term adjustments (this is where a customer may seek to adjust an insurance amount part way through their policy term), or
• increases in indemnity periods (this is where someone may have business interruption insurance currently established to cover for say, a 12 month period of interruption, but seeks to extend that to cover a longer period than the currently agreed term)
The definition of the regions affected by this underwriting instruction are the local city and district councils of:
Lower North Island
Wellington City, Hutt City, Porirua City, Upper Hutt City, Kapiti District, South Wairarapa District, Carterton District and Masterton District.
Upper South Island
Marlborough District, Nelson City, Tasman District and Kaikoura District.
We will update you with any further developments.