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Suburbs and Areas of New Zealand Where it's Difficult to Insure Homes

Our essential-read guide covers problematic regions for house insurance, key considerations for insuring in high-risk regions, frequently asked questions and a trusted checklist for potential buyers.
Updated 12 May 2025
Summary:​
  • New Zealand's unique topography and geological activity bring distinct challenges when insuring homes, especially in areas prone to natural disasters. Whether you're nestled in the hills of Wellington, on the waterfront in Marlborough Sounds, or in the shadow of Christchurch's seismic memories, your home insurance can differ considerably. This guide offers a holistic view of the intricacies of insuring homes in these high-risk regions.
  • Introduction: Insuring homes in certain areas of New Zealand is no straightforward feat. Factors ranging from historical seismic events to rising sea levels complicate the insurance landscape. With dramatic natural events reshaping insurance policies, understanding the complexities of insuring in high-risk regions becomes crucial for homeowners.

Our guide covers:

MoneyHub Founder Christopher Walsh Explains How Our Friends at Initio Offer Instant Quotes for Difficult to Insure Areas:

Christopher Walsh
MoneyHub Founder
  • Empowered by Data: We trust Initio Insurance for transparent home insurance insights backed by robust data that that other insurers can't match.
  • Instant Assessment: Don't wait or wonder - the risks are too great and the costs too high. With Initio, you can gauge your insurance prospects in seconds. Type in your address, and see instant feedback.
  • Transparent Process: Get an initial policy cost instantly. While some cases might need a bit more review, you're ensured accuracy and reliability.
  • Unparalleled Insight: Dive deep into Initio's unmatched property data. If you're a homeowner or potential buyer, Initio enlightens your options like no other.
  • Trusted & Reliable: Beyond being award-winning, Initio is backed by IAG (owners of AMI, State, and others) and offers exceptional NZ-based customer service.​

Region-Specific Insurance Challenges: A Closer Look

Know This First: Understanding the Scope and Limitations of This Guide
​This guide provides a comprehensive overview of various regions and areas where insuring homes can be challenging. However, it's essential to understand a few key points first:
  1. Not Exhaustive, But Informative: While we strive for thoroughness, our list isn't exhaustive. Many regions in New Zealand present unique challenges, and our guide highlights some of the most prominent ones based on the data and feedback we've gathered.
  2. Spatial Representation: MoneyHub users have suggested that a spatial representation, such as a map, would be an ideal way to display this information. We acknowledge this viewpoint and are working on ways to incorporate more visual elements in future iterations. In the meantime, we publish our guide in a format focused on clarity and insight.
  3. Local Variances: Within the regions mentioned, pockets and suburbs have varying risk profiles. For instance, certain areas in Wellington and Porirua built on bedrock present a significantly lower seismic risk than others.
  4. Collaborate and Consult: We encourage anyone looking to buy a home to consult local experts, community groups, and insurers familiar with the specific challenges of a region. Local knowledge combined with expert insights ensures you make informed decisions.

​We appreciate feedback (you can contact our research team here) and are continually working to enhance our resources.

Wellington

Given its position near significant fault lines, the capital city is no stranger to natural calamities:
  • Seismic Risks: Wellington's proximity to fault lines makes it a high-risk earthquake zone. Historical events have highlighted the city's vulnerability, with significant infrastructure and property damage from past quakes.
  • Landslides and Tsunamis: The city's unique hilly terrain and its coastal borders heighten the risks of landslides from heavy rain and tsunamis from offshore seismic activity.
  • Economic Significance: Being the capital city, disruptions in Wellington can have nationwide implications, from governance to business operations. This importance means insurers have to consider broader implications when evaluating risks.
  • Urban Density: The city's dense urban areas can amplify the impact of natural disasters, resulting in extensive claims for insurers.
  • Infrastructure Development: Ongoing and planned infrastructure projects might temporarily change risk profiles, making construction sites vulnerable to natural disasters.

For Wellington residents and potential homeowners, awareness of these risks and ensuring properties adhere to the latest safety standards is vital for insurable interests.​

Porirua

Porirua shares many of the capital's natural risk factors.
  • Seismic Activity: Like Wellington, Porirua's position near active fault lines makes earthquakes a significant concern.
  • Coastal Threats: Its coastal borders make it susceptible to risks associated with rising sea levels, storm surges, and tsunamis.
  • Urban Development: Urban sprawl and new developments can change water runoff patterns and potentially increase flooding risks in specific pockets.
  • Local Economy: While Porirua has a diverse local economy, disruptions from natural disasters can have prolonged impacts on local businesses, indirectly influencing property values and insurance concerns.

Porirua residents must stay updated with local council guidelines, especially concerning property developments in vulnerable zones.

Lower Hutt & Upper Hutt

These suburbs, forming part of the wider Wellington region, grapple with unique insurance challenges:
  • River Flooding Vulnerability: Situated along the Hutt River, both Lower and Upper Hutt face threats of river flooding. Historical incidents, especially during periods of heavy rainfall, have left lasting impacts, making this a primary concern for insurers.
  • Seismic Activity: Being part of the Greater Wellington area, these regions share the capital city's earthquake vulnerability. The combination of seismic and flooding threats compounds the risk for insurers.
  • Urban Development: Rapid urban development can change water drainage patterns, potentially exacerbating flood risks. Insurers consider this dynamic landscape when assessing risks.
  • Infrastructure Challenges: While significant improvements have been made, some areas may still have ageing infrastructure susceptible to flood and quake damage.
  • Economic Concerns: The local economy, while diversified, can feel the brunt of significant natural disasters, indirectly influencing property values and insurability.

Lower and Upper Hutt residents should remain informed about local flood defence initiatives and regularly review their insurance coverage to ensure it remains relevant.

Marlborough Sounds

A picturesque region defined by its waterways and rugged terrain, the Marlborough Sounds faces distinct insurance challenges:
  • Isolation and Accessibility: The intricate waterways and islands of Marlborough Sounds often mean limited road access for many properties. This isolation can complicate emergency response and rebuilding efforts, factors insurers weigh heavily.
  • Sea-Level Rise Threat: The region's coastal nature makes it vulnerable to rising sea levels, potentially putting properties at risk of inundation.
  • Topographical Challenges: The unique topography, including steep slopes and dense vegetation, can amplify risks like landslides, especially during heavy rainfall.
  • Economic Factors: The region's economy, largely driven by tourism and aquaculture, can be influenced by major natural events. Any disruption can have cascading effects on property values and insurability.
  • Infrastructure Variances: Given the region's diverse landscape, infrastructure quality and resilience can vary. Areas with older or less robust infrastructure might face higher insurance challenges.

Potential homeowners and current residents in the Marlborough Sounds should consult local guidelines, especially concerning property developments in vulnerable zones, and engage with insurers familiar with the region's unique challenges.

Whangarei

Whangarei presents a unique set of challenges for insurers.
  • Coastal and Slope Hazards: Being a coastal town, rising sea levels and storm surges pose significant threats. The sloping terrains in certain areas also increase the risks of landslides.
  • Tropical Climate: Whangarei's subtropical climate makes it vulnerable to cyclones, intense rainfall, and associated flooding.
  • Infrastructure: Parts of the town and its outskirts may not have the infrastructure resilience seen in larger cities, potentially leading to prolonged recovery periods post-disasters.
  • Economic Diversification: While the region has made strides in diversifying its economy, significant natural disasters can impact its key sectors, influencing property values and insurability.

Given these factors, property buyers and homeowners in Whangarei should consult local experts and authorities to understand region-specific risks better.

Westport

Westport faces challenges both from its geography and its relative remoteness:
  • Flood Vulnerability: The town's position between the Orowaiti Lagoon and the Buller River makes it susceptible to flooding. Recent years have seen significant flood events, causing damage to properties and infrastructure.
  • Geographic Isolation: Being somewhat remote, access issues can influence insurers' decisions, as the speed of emergency response and rebuilding can be slower compared to more accessible regions.
  • Economic Challenges: The local economy's dependency on specific sectors, combined with natural disaster risks, can influence property values and, by extension, insurance decisions.

Westport homeowners and potential buyers must be aware of the dual challenges of natural disasters and the region's unique economic and geographic situation.​

Hawke's Bay

Homes in Hawke's Bay have specific challenges:
  • Recent Flooding Episodes: Pockets of Hawke's Bay, notably Eskdale, Wairoa, and Fernhill, have been significantly impacted by recent flooding events. The resulting property damages and infrastructural concerns have made insurers wary. The regularity of these events could further stress the local infrastructure and community, making it a focal point for insurers.
  • Seismic Activity: Hawke's Bay isn't just vulnerable to floods; it has a rich seismic history. The devastating 1931 earthquake that struck Napier is a testament to the region's potential. Insurers often consider this past when assessing properties in the region.
  • Re-Classification of Areas: Following major flood events, some areas within Hawke's Bay have been re-classified by local authorities in terms of their flood risk. This re-classification can change insurance considerations significantly, potentially leading to increased premiums or even refusal of coverage for properties in high-risk zones.
  • Economic and Agricultural Concerns: The region's economy is closely tied to its agricultural and viticulture sectors. Any major natural disaster can have a dual impact: direct property damage and disruption of the local economy, which can influence property values and insurability.
  • Infrastructure and Development: As with any growing region, Hawke's Bay has seen its fair share of urban development. New developments can change natural water flow patterns, potentially affecting flood risks. Infrastructure quality, age, and resilience can also be factors for insurers, especially in areas recently impacted by natural events.

Residents and potential homeowners in Hawke's Bay should proactively understand local risk factors and the implications of recent natural disasters on property insurability. Collaborating with local authorities, community groups, and insurers familiar with the area's challenges is essential for informed decision-making.

Christchurch's Eastern Suburbs: Southshore and New Brighton

The 2010 and 2011 Canterbury earthquakes left an indelible mark on Christchurch, with the eastern suburbs being some of the hardest-hit areas. 
The repercussions of these events have led to significant insurance challenges in regions like Southshore and New Brighton. Here’s why:
  1. Land Damage and Liquefaction Susceptibility: The eastern suburbs experienced extensive land damage during the earthquakes, with large parts affected by liquefaction, where the ground behaves like a liquid during an earthquake. This makes the land more susceptible to sinking, tilting, and lateral spreading during future seismic events. Such geological instability makes it an area of concern for insurers.
  2. Coastal Erosion and Sea-Level Rise: Southshore and New Brighton are coastal areas particularly vulnerable to sea-level rise and coastal erosion. With climate change forecasts predicting higher sea levels and increased storm surges, properties in these regions are at risk of flooding and potential land loss.
  3. Land Zoning Post-Earthquake: The Christchurch City Council and central government re-zoned parts of the eastern suburbs after the earthquakes. Areas were classified into different technical categories, determining their susceptibility to future liquefaction. While properties in the worst-affected zones (like TC3) can still be built upon or repaired, they have stricter foundation requirements. Such technical categorisations can influence insurers' risk assessments.
  4. Infrastructure Damage: The earthquakes disrupted key infrastructure, including sewage, roads, and water supply. While many of these have since been repaired or are being restored, the reminder of potential future disruptions makes insurers wary.
  5. Historical Claim Rates: The volume of claims post-earthquake in these regions has been significant, from property damage to loss of land usability. High historical claim rates can make insurers hesitant, indicating potential future claims.
  6. Community Initiatives: While there have been community-driven initiatives to restore and rejuvenate areas like New Brighton, making it a more attractive place to live and invest in, these initiatives don't necessarily offset the inherent natural risks that insurers focus on.

For these reasons, prospective homeowners and current residents should know the potential insurance challenges when considering properties in Christchurch's eastern suburbs, particularly in Southshore and New Brighton. Proper due diligence, consultation with local authorities, and risk assessment are essential before property transactions.

Important: The Risks of Pre-1935 Homes

Wellington, Christchurch, North Canterbury, and Marlborough contain a fair share of homes built before 1935. These homes, crafted before New Zealand's building standards were established, often face unique insurance challenges due to their perceived vulnerability to natural disasters.

More information: Our guide to old home insurance explains the risk assessment insurers undertake and how you improve the likelihood of being covered.

MoneyHub Founder Christopher Walsh Explains How Our Friends at Initio Offer Instant Quotes for Difficult to Insure Areas:

Christopher Walsh
MoneyHub Founder
  • Empowered by Data: We trust Initio Insurance for transparent home insurance insights backed by robust data that that other insurers can't match.
  • Instant Assessment: Don't wait or wonder - the risks are too great and the costs too high. With Initio, you can gauge your insurance prospects in seconds. Type in your address, and see instant feedback.
  • Transparent Process: Get an initial policy cost instantly. While some cases might need a bit more review, you're ensured accuracy and reliability.
  • Unparalleled Insight: Dive deep into Initio's unmatched property data. If you're a homeowner or potential buyer, Initio enlightens your options like no other.
  • Trusted & Reliable: Beyond being award-winning, Initio is backed by IAG (owners of AMI, State, and others) and offers exceptional NZ-based customer service.​

Key Considerations: Insuring in High-Risk Regions


  1. Research the Risks:
    Understanding the natural risks of your location can be enlightening. Are earthquakes common? Is flooding a seasonal concern? Is your area tsunami-prone?
  2. Evaluate Renovation Needs:
    For older homes, insurers may ask for specific renovations or upgrades, especially if the house resides in a high-risk zone. Strengthening foundations, modernising electrical systems, or bolstering against flood and water damage might be necessary.
  3. Check Historical Data:
    ​Knowing the history of natural events in the area can guide your insurance decisions. For instance, an area with frequent, minor tremors might be viewed differently from one that experienced a single major quake decades ago.

Insuring Homes in High-Risk Regions - Frequently Asked Questions

There's a lot to cover. We've grouped our FAQs into several sections to help you cover the risks and make important decisions with ease.

1. Natural Disaster Coverage FAQs:

How does the frequency of natural disasters in my area affect my premium?

Insurers often base premiums on historical data. Regions with frequent natural events may see higher premiums due to perceived higher risk.

Are all-natural disasters covered under standard policies?

It depends on the policy - usually, you're covered, but there may be exclusions or higher excess on specific claimable events.

Can I get insurance if my home has been previously affected by a natural disaster?

Yes, but it might come with higher premiums, special conditions, or certain exclusions based on the extent of past damages and the property's vulnerability.
2. Policy Exclusions FAQs:

What are common policy exclusions for high-risk zones?

Exclusions vary, but common ones include specific types of water damage in flood-prone areas or earthquake damage in seismic zones.  The application of a specific flood excess ranging from $2,500 to $10,000 is common.

If my home is damaged due to an excluded event, will the entire claim be rejected?

It depends on the policy. Some insurers might still cover parts of the damage not directly attributable to the excluded event.

Can I purchase additional coverage for events typically excluded in my policy?

No, if an insurer has decided to exclude a specific concern it is very unlikely they will allow you to purchase cover for that known risk.
3. Premium Costs FAQs:

Why is my premium higher than a home of similar value in a different region?

Insurers consider the risks associated with the region. Homes in high-risk zones might face higher premiums due to the increased likelihood of claims from natural disasters.

Are premium costs static, or can they increase over time?

Premiums often change annually based on updated risk assessments, claims histories, insurer profitability, re-insurance costs, world economic conditions, and regional events.

Can bundling home insurance with other insurance types reduce my premium?

Many insurers offer discounts for bundling multiple insurance types, like home and car. This might help offset higher home insurance premiums in high-risk areas.
4. Insurer Specialisations FAQs:

Are there insurers specialising in high-risk New Zealand regions

While not exclusive to high-risk regions, some insurers have tailored offerings or expertise in covering homes in such areas. Always compare quotes and offerings.

If a standard insurer denies coverage, should I approach a specialised insurer?

Yes - insurers that specialise in home insurance such as Initio, might better understand region-specific risks and could offer tailored solutions.

Are premiums typically higher with specialised insurers?

No - while they might better grasp risks, they also might have effective risk-mitigation strategies that could result in competitive premiums.
5. Renovations & Premiums FAQs:

Can renovations reduce my insurance premiums in high-risk zones?

In some cases, upgrades that bolster a home's resistance to regional risks can reduce premiums.

What renovations are most impactful for premium reductions?

It varies by region. In flood-prone areas, raising the home might help. In seismic zones, structural reinforcements could be beneficial.

Do I need to inform my insurer of renovations or upgrades?

Yes - keeping your insurer informed ensures you get any entitled premium reductions and that your coverage reflects your home's current value.  It’s also important to notify your insurer so that you remained covered while you are renovating or upgrading.

Floods and Cyclones are Here to Stay - '1 in 100' or '1 in 50' Year Weather Events No longer Apply

While traditional metrics like "1 in 100 years" or "1 in 50 years" flood predictions have been used to quantify flood risks, these measures assume a stable climatic backdrop. However, this isn't the case in our present world.

Our planet's climatic system has become increasingly volatile. We're observing intensified ENSO (El Niño Southern Oscillation) cycles, which have lasting impacts on weather patterns globally. Additionally, hurricanes and cyclones are growing in frequency and displaying characteristics of rapid intensification. 

These extreme weather events, combined with shifts in ocean currents, altered salinity levels leading to marine heatwaves, and the decreasing glaciers, which influence seasonal droughts and flash floods, all indicate our changing climate.

Furthermore, with increased water vapour in our atmosphere due to global warming, we're witnessing heavier and more torrential downpours than before. Such volatile conditions make relying on historical data and statistics challenging. Predicting the next big natural disaster using past patterns becomes an exercise in uncertainty.

Know This: It's reasonable to believe that calamities similar to or worse than the recent Auckland floods will recur within the decade. Many would agree that it's not just a possibility but a likelihood, given the rapid changes in our climate.

Potential buyers must be careful; investing in properties near the sea, in floodplains, areas prone to water shortages or regions that might experience extreme temperatures threatening human comfort and safety is becoming increasingly risky. Applying this approach, a substantial portion of the New Zealand landscape appears vulnerable, and the risks have never been higher.

Checklist for Potential Buyers: Ensuring a Home is Insurable

If you're considering purchasing a home anywhere in New Zealand, it's essential to understand the insurance complexities in various regions. Before making an offer, determine whether the home is insurable and at what cost. To help you proceed with confidence and efficiency, our step-by-step checklist covers what you need to be aware of:

1. Location Evaluation:
  • Research the suburb/area: Does it fall into any regions listed with insurance complexities?
  • Even if a suburb isn't listed in the high-risk areas, there are hundreds of other pockets around the country with unique risk layers. 
  • If it's high risk, home insurance will be more problematic to secure. 

2. Historical Assessment:
  • Check the construction year of the house: If built before 1935, especially in Wellington, Christchurch, North Canterbury, or Marlborough, it may be more challenging to get insurance.
  • Understand the historical events of the region: Has the area experienced significant natural disasters in the past?
  • If the home is pre-1935 and/or in a natural disaster area, home insurance will be more problematic to secure. ​

3. Use Technology to Cover the Unknown:
  • We suggest inputting the address into initio to get instant feedback on potential insurance concerns - initio's database is unrivaled and a strong starting point to unearth any issues. Please be aware that initio is a partner of MoneyHub and if you purchase a policy we may receive a referral fee. 
  • If you are looking to purchase a new property we suggest not only getting an instant quote from Initio (to see if there are any red flags, e.g. a slope severity warning), but spending a couple of minutes getting to the payment page. If you make it there you will be able to download a certificate confirming your ability to get insurance.  This is something Banks are requiring of certain properties. 

If there are no red flags by completing the above, there are still other in-personal and third-party checks to complete:

​1. On-site Visit:
  • Check for visible signs of structural damage or repairs.
  • Evaluate the home's positioning in relation to potential flood zones, landslide areas, or proximity to the coast.

2. Consultation:
  • Spot-check other properties in the same street using initio to understand if other homes have faced issues. Are there any common issues they encounter?
  • Facebook groups of local community members are useful resources for asking about street or neighbourhood-specific home insurance experiences.

3. Environmental Risks:
  • Review geological reports: Look for potential seismic activities, landslide risks, and flooding patterns.
  • Assess the vulnerability to coastal hazards, such as rising sea levels, storm surges, and cyclones.
  • As an example, Auckland Council launched a tool in August 2023 for anyone to check the flood risks of an address per this RNZ article . 

If there are no red flags at this point, more checks are needed:

Inspection:
  • A Building Inspector report will assess the home's structural integrity, the current condition, susceptibility to regional risks, and any recommended fortifications or repairs.
  • Ensure the home complies with the latest safety and structural standards.
  • Inquire if the home has ever been denied insurance coverage and, if so, why.

Final Decision:
  • Weigh the pros and cons of purchasing the home based on its insurability.
  • Consider future resale potential - if the house is challenging to insure now, it may be more difficult to sell later. 
  • For all of the above reasons, it's essential to clearly understand your potential home's insurability before committing to purchase.

MoneyHub Founder Christopher Walsh Explains How Our Friends at Initio Offer Instant Quotes for Difficult to Insure Areas:

Christopher Walsh
MoneyHub Founder
  • Empowered by Data: We trust Initio Insurance for transparent home insurance insights backed by robust data that that other insurers can't match.
  • Instant Assessment: Don't wait or wonder - the risks are too great and the costs too high. With Initio, you can gauge your insurance prospects in seconds. Type in your address, and see instant feedback.
  • Transparent Process: Get an initial policy cost instantly. While some cases might need a bit more review, you're ensured accuracy and reliability.
  • Unparalleled Insight: Dive deep into Initio's unmatched property data. If you're a homeowner or potential buyer, Initio enlightens your options like no other.
  • Trusted & Reliable: Beyond being award-winning, Initio is backed by IAG (owners of AMI, State, and others) and offers exceptional NZ-based customer service.​
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