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Coastal News Today | Int l - With seas rising and storms surging, who will pay for New Zealand s most vulnerable coastal properties?

The major storm surge and coastal flooding in Wellington earlier this month was another reminder that the sea is now lapping close to a lot of New Zealand’s front doors. The ominous question is: who will pay when it crosses the threshold? But that’s not a question worrying insurance companies. They’ve made their position clear they won’t be paying for it. Insurance is based on uncertainty and is reevaluated annually. When the chance of damage rises beyond what an insurance company is prepared to bear, it withdraws. This leaves at-risk homeowners with no insurance, either private or through the state’s Earthquake Commission. In the meantime, homeowners will likely continue to pay rising premiums, possibly unaware of the tenuous nature of their coverage.

With seas rising and storms surging, who will pay for New Zealand s most vulnerable coastal properties?

The major storm surge and coastal flooding in Wellington earlier this month was another reminder that the sea is now lapping close to a lot of New Zealand’s front doors. The ominous question is: who will pay when it crosses the threshold? But that’s not a question worrying insurance companies. They’ve made their position clear they won’t be paying for it. Insurance is based on uncertainty and is reevaluated annually. When the chance of damage rises beyond what an insurance company is prepared to bear, it withdraws. This leaves at-risk homeowners with no insurance, either private or through the state’s Earthquake Commission. In the meantime, homeowners will likely continue to pay rising premiums, possibly unaware of the tenuous nature of their coverage.

MIL-OSI New Zealand: With seas rising and storms surging, who will pay for New Zealand s most vulnerable coastal properties?

09 July 2021 University of Canterbury Dr Tom Logan’s call for action asks for governments to prepare better for uninsurable properties related to rising sea levels in a new article on The Conversation. The major storm surge and coastal flooding in Wellington earlier this month was another reminder that the sea is now lapping close to a lot of New Zealand’s front doors. The ominous question is: who will pay when it crosses the threshold? But that’s not a question worrying insurance companies. They’ve made their position clear — they won’t be paying for it. Insurance is based on uncertainty and is reevaluated annually. When the chance of damage rises beyond what an insurance company is prepared to bear, it withdraws.

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