The association also wants people to be aware that their local councils can put s72 notices on their titles when they seek building consent to do a renovation.
So, someone may have bought a property on the understanding everything was fine and it was entirely insurable, only for a building consent application to trigger a reassessment of the property’s risks, a black mark to be put on the title and the property to become partially uninsurable.
The NHC makes it clear that it has the right to fully or partially decline claims related to perils flagged in s72 notices (or the equivalents under older legislation).
The commission covers a capped amount of damage caused by natural disasters. It leaves property owners’ private insurers to pay for damage over and above this cap.
However, private insurers won’t necessarily top up a claim that has been declined by the NHC.
The country’s largest general insurer, IAG, will decide what to do on a case-by-case basis, whereas Vero and Tower typically won’t top up claims declined by the NHC.
Tower won’t take on new customers with properties that have s72 notices on them.
The Herald hasn’t been able to get data that shows how often s72 notices see homeowners left footing bills related to natural hazards themselves.
However, the number of properties that have had s72 notices put on their titles has risen in recent years, as natural hazards are increasingly being identified in council plan changes.
According to Land Information New Zealand, 429 properties had s72 notices put on their titles in 2016. This number rose to a peak of 940 in 2022, before dropping back to 807 in 2025.
IAG, which trades under the AMI, State, NZI, Lumley and Lantern brands, said: “The existence of a s72 notice, or a NHC claim decision based on that notice, is not by itself determinative of IAG’s claim decision.
“Each case will depend on the specific circumstances, the policy coverage in place, and the underwriting information available at the time the policy was issued … It’s also worth noting that the absence of a s72 notice does not necessarily mean a property is free from natural hazard risk.”
Vero, which is part of Suncorp, outlined its position: “Where the NHC declines a claim for damage to a home because of a s72 notice, Vero would generally do the same. Depending on the circumstances, we may still assist with items outside of the NHC’s scope, such as driveways and swimming pools.”
Tower, which is a smaller NZX-listed company, said: “Homes with a s72 notice would fall outside of our risk appetite, and we wouldn’t offer cover; it’s rare that we see this in our reviews … It’s important that customers tell us about changes to their home, property title or Lim report that may affect their insurance.”
Tower said it would work with existing customers that had s72 notices put on their properties.
The Insurance Brokers Association said the Government should create a freely available register of properties with s72 notices to increase transparency and improve access to information.
It said that while property owners should know if their properties have s72 notices, subsequent purchasers may not have this information unless they pay their local councils for a LIM report.
Building and Construction Minister Chris Penk wasn’t keen on a register, saying it would be costly and was unnecessary.
“Regulations that came into effect last year also clarified s72 notices are required to be noted on a property’s Lim, so I’d encourage prospective home owners to undertake due diligence and request Lim reports on properties they are looking at,” he said.
“Records of title that display a s72 notice are also available through the Local Government Official Information and Meetings Act process.”
Jenée Tibshraeny is the Herald’s Wellington business editor, based in the parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.
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