A large insurance bill is looming from the latest weather-related disasters.
The landslide at Mount Maunganui combined with flood damage in Northland, Coromandel and Gisborne means that the claims are set to roll in.
Insurance and Financial Services Ombudsman Karen Stevens told Ryan Bridge that people affected can expect delays given the high number of claims being made.
"I think everybody understands that with a significant weather event, there are going to be more delays than if it's just business as usual."
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Speaker 1 (00:00):
Another big insurance bill is looming this from the latest
(00:03):
weather related disasters, the landslide of Mount Muntanui, the flooding
damage North and Corimandal Gisbon. The claims will be rolling in,
So let's go to Karen Stevens the insurance and Financial
Services on Bodsman Good Evening.
Speaker 2 (00:15):
Karen Good Evening.
Speaker 1 (00:17):
Ryan, what's your advice for people making claims at the moment?
Speaker 2 (00:22):
Well, I think everybody understands that with a significant weather
event there are going to be more delays than if
it's just business as usual. So what the IFS scheme
suggests is that you make online claims rather than telephoning
the insurer, because we all know when people are trying
to telephone at the same time that the lines get
(00:42):
clogged and so that that increases frustration. I think because
a lot of people are going to be really upset
about what's happened. You know, they might have really precious
things that have got destroyed, their houses may have gone.
You know that the scale of this again is going
to be extreme, just as it was in the Auckland
(01:03):
floods and Cyclone Gabrielle. So I think learning from that
it's make an online claim if you're in a position
to do so, and particularly you know, try and save
everything that you can and take really good photos, keep
records so that when it comes time to making a claim,
you've got all of that information at your fingertips and
(01:26):
it's not an insurmountable problem because you don't need anything
else to have to deal with at this stage.
Speaker 1 (01:33):
Karen, what are the when it comes to claims that
are rejected or aren't covered. What is legitimate what's not
legitimate when it comes to weather, well.
Speaker 2 (01:43):
In terms of you know, claims that are declined, sometimes
it's simply because people don't have proof of what they're
claiming for. So that's why it's so important to take photos.
For example, say I've had a flood through my house
and and I've said, you know, the carpet has all gone,
you know, there was stuff on the floor, you know,
(02:05):
all of that has been lost. But in addition to that,
I'm claiming for pictures that were high on the wall
or a television that was high on the wall. That's
immediately going to sort of make an insurance say, well,
can you show us where the water came up to?
For example, And in some cases it absolutely would have
gone up to the television. But in other cases the
(02:26):
n SURE was going to say the water didn't go
that fast, so the TV can't have been damaged in
the flood. So that I think is a really important
thing for people to remember. They're only claiming for what's
been damaged in the weather event, not other stuff.
Speaker 1 (02:42):
So first thing when you walk back into your house,
of course it'll be an emotional time, but get your
camera out and start taking photos.
Speaker 2 (02:50):
That's right, Ryan. You know, it's so important for people
to keep those records. You know, we had one case
out of cyclone Gabriel to the ifso scheme where a
woman had claimed for a whole lot of stuff and
when there was a few questions raised by the insurer
and an investigation was done, they found that she put
(03:11):
a lot of stuff into a storage unit and so
things that she was actually claiming for were not damaged.
They'd just been moved. So that's why, you know, you
don't want to go through a trauma like this or
whether event and have such you know, terrible things happen
and then find that when you go to make it
claim that there is a problem with it. So you know,
(03:32):
the IFSO scheme sees a lot of complaints arising out
of declined claims. There are only really the tip of
the iceberg, because most insurers most of the time will
pay most claims.
Speaker 3 (03:44):
What's there in some cases, Sorry you keep saying if SCO.
What's f SCOF if SO is the insurance and financial
services onwardsman scheme of which I am the onwardsman. So
that is the the scheme that provides a free services
to consumers if they have complaints about their insurers. Gotcha,
So this is what we do, and so we will
(04:08):
get a lot of complaints I'm sure coming in at
some stage, but not in the in the early days.
It's now all going to be about making claims and
getting them through the system. And bearing in mind that
we see a very very small number of claims turning
into complaints. And why I would.
Speaker 2 (04:27):
Like to talk to you and talk to consumers about
it at this stage is that they can actually prevent
those claims from being declined if they get all that
right information into the insurer to start with.
Speaker 1 (04:39):
No good to know, good advice. Just finally, the premium situation.
I don't know whether this is even within your purview
but do we expect that premiums go up after a
big event like this.
Speaker 2 (04:51):
Well, it's unfortunate, but ordinarily, you know, the more events
there are around the world, and it's not just New Zealand,
it's climate change everywhere, weather events, it's all of these
major things put pressure on the reinsurers to actually put
the insurance up so the insurers can offer insurance. So
there's usually a flow on effect. I don't think anybody
(05:14):
can can look into a crystal ball and say there's
definitely going to be a premium rise, but it's normally
the result of increased claims will flow on to reinsurers
actually increasing the amount that it costs to ensure everything. Basically, Karen,
appreciate one thing, Ryan before I go, Can I just
(05:35):
suggest that if anybody has problems at the moment in
terms of accommodation, under some policies, not all policies, but
under some policies, they can get a temporary accommodation allowance.
So it's worth asking the insurers about it so that
if they need it, they can get it.
Speaker 1 (05:53):
Great stuff, Karen, Thank you. Karen Stevens Insurance and Financial
Services on Boodsman appreciate your time Tonight. For more from
Heather to Dooplassy Allen Drive, listen live to News Talk
Set B from four pm weekdays, or follow the podcast
on iHeartRadio
Another big insurance bill is looming this from the latest
(00:03):
weather related disasters, the landslide of Mount Muntanui, the flooding
damage North and Corimandal Gisbon. The claims will be rolling in,
So let's go to Karen Stevens the insurance and Financial
Services on Bodsman Good Evening.
Speaker 2 (00:15):
Karen Good Evening.
Speaker 1 (00:17):
Ryan, what's your advice for people making claims at the moment?
Speaker 2 (00:22):
Well, I think everybody understands that with a significant weather
event there are going to be more delays than if
it's just business as usual. So what the IFS scheme
suggests is that you make online claims rather than telephoning
the insurer, because we all know when people are trying
to telephone at the same time that the lines get
(00:42):
clogged and so that that increases frustration. I think because
a lot of people are going to be really upset
about what's happened. You know, they might have really precious
things that have got destroyed, their houses may have gone.
You know that the scale of this again is going
to be extreme, just as it was in the Auckland
(01:03):
floods and Cyclone Gabrielle. So I think learning from that
it's make an online claim if you're in a position
to do so, and particularly you know, try and save
everything that you can and take really good photos, keep
records so that when it comes time to making a claim,
you've got all of that information at your fingertips and
(01:26):
it's not an insurmountable problem because you don't need anything
else to have to deal with at this stage.
Speaker 1 (01:33):
Karen, what are the when it comes to claims that
are rejected or aren't covered. What is legitimate what's not
legitimate when it comes to weather, well.
Speaker 2 (01:43):
In terms of you know, claims that are declined, sometimes
it's simply because people don't have proof of what they're
claiming for. So that's why it's so important to take photos.
For example, say I've had a flood through my house
and and I've said, you know, the carpet has all gone,
you know, there was stuff on the floor, you know,
(02:05):
all of that has been lost. But in addition to that,
I'm claiming for pictures that were high on the wall
or a television that was high on the wall. That's
immediately going to sort of make an insurance say, well,
can you show us where the water came up to?
For example, And in some cases it absolutely would have
gone up to the television. But in other cases the
(02:26):
n SURE was going to say the water didn't go
that fast, so the TV can't have been damaged in
the flood. So that I think is a really important
thing for people to remember. They're only claiming for what's
been damaged in the weather event, not other stuff.
Speaker 1 (02:42):
So first thing when you walk back into your house,
of course it'll be an emotional time, but get your
camera out and start taking photos.
Speaker 2 (02:50):
That's right, Ryan. You know, it's so important for people
to keep those records. You know, we had one case
out of cyclone Gabriel to the ifso scheme where a
woman had claimed for a whole lot of stuff and
when there was a few questions raised by the insurer
and an investigation was done, they found that she put
(03:11):
a lot of stuff into a storage unit and so
things that she was actually claiming for were not damaged.
They'd just been moved. So that's why, you know, you
don't want to go through a trauma like this or
whether event and have such you know, terrible things happen
and then find that when you go to make it
claim that there is a problem with it. So you know,
(03:32):
the IFSO scheme sees a lot of complaints arising out
of declined claims. There are only really the tip of
the iceberg, because most insurers most of the time will
pay most claims.
Speaker 3 (03:44):
What's there in some cases, Sorry you keep saying if SCO.
What's f SCOF if SO is the insurance and financial
services onwardsman scheme of which I am the onwardsman. So
that is the the scheme that provides a free services
to consumers if they have complaints about their insurers. Gotcha,
So this is what we do, and so we will
(04:08):
get a lot of complaints I'm sure coming in at
some stage, but not in the in the early days.
It's now all going to be about making claims and
getting them through the system. And bearing in mind that
we see a very very small number of claims turning
into complaints. And why I would.
Speaker 2 (04:27):
Like to talk to you and talk to consumers about
it at this stage is that they can actually prevent
those claims from being declined if they get all that
right information into the insurer to start with.
Speaker 1 (04:39):
No good to know, good advice. Just finally, the premium situation.
I don't know whether this is even within your purview
but do we expect that premiums go up after a
big event like this.
Speaker 2 (04:51):
Well, it's unfortunate, but ordinarily, you know, the more events
there are around the world, and it's not just New Zealand,
it's climate change everywhere, weather events, it's all of these
major things put pressure on the reinsurers to actually put
the insurance up so the insurers can offer insurance. So
there's usually a flow on effect. I don't think anybody
(05:14):
can can look into a crystal ball and say there's
definitely going to be a premium rise, but it's normally
the result of increased claims will flow on to reinsurers
actually increasing the amount that it costs to ensure everything. Basically, Karen,
appreciate one thing, Ryan before I go, Can I just
(05:35):
suggest that if anybody has problems at the moment in
terms of accommodation, under some policies, not all policies, but
under some policies, they can get a temporary accommodation allowance.
So it's worth asking the insurers about it so that
if they need it, they can get it.
Speaker 1 (05:53):
Great stuff, Karen, Thank you. Karen Stevens Insurance and Financial
Services on Boodsman appreciate your time Tonight. For more from
Heather to Dooplassy Allen Drive, listen live to News Talk
Set B from four pm weekdays, or follow the podcast
on iHeartRadio
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