The impacts of climate change are driving up house insurance costs, a new report has found.
A just-released report by Consumer NZ has highlighted the fourth most financial concerning issue for New Zealanders - insurance.
The report noted an increase in extreme weather events driven by climate change, which were in turn increasing the risk of damage to houses.
That meant insurers were charging more, the report found.
The report referred to academic research that found hundreds of thousands of New Zealand homes were located on flood plains and near costs, which meant they were more at risk of flooding.
Victoria University of Wellington Professor Ilan Noy, who specialises in the economics of disasters and climate change, said climate change was not a future problem; it was a current problem.
A Consumer NZ survey included in the report found 86% of respondents hadn’t received any information from their insurer about the impact of climate change on their home insurance.
Ministry for Business, Innovation and Employment claims resolution service director Darren Wright said councils can mitigate high flood areas, but they cannot stop developers wanting to build on high-risk environments. If the council denied consent, developers the option to go to the Environmental Court.
Wright said it was not fair to increase insurance costs on homeowners who had purchased existing properties, and therefore had no say in where it had been built - or where developments had been approved by previous councils or governments.
Both Noy and Wright said climate adaptation and goals should be nationally led in collaboration with local councils.
Climate Change Minister Simon Watts said work is underway on a national adaption framework and he intended to introduce legislation later this year.
He encouraged anyone who was thinking about buying a property to seek a Land Information Memorandum from their local council. They can also view council flood maps on the Natural Hazards Portal.
