Globally it is typical after a significant natural disaster for insurance companies to place a widespread restriction on new business or increased insurance cover. This is done to minimise additional losses, to meet reinsurers needs and to keep insurance affordable.
Generally this lasts about 30 days, however the restriction can last longer depending on the number and magnitude of aftershocks. IAG assesses the extent of the embargo every 24 hours and adjusts the embargo area as more information is known and situations change.
If you are in the process of purchasing a property in a restricted area, we recommend that buyers contact the vendor’s current insurer as they may be able to provide cover.
Currently the IAG restriction area includes:
- Hurunui District
- Kaikoura District
- Marlborough District
- Wellington City
- Lower Hutt City
- Upper Hutt District
- Porirua City
Updated 10:07am 21 December 2016.