Buying a house in Canterbury: Could the area affect your insurance?

Yes. Canterbury has several location-specific risks that can affect whether you can insure a property, how much you pay, and what your policy covers. This is particularly important if you're buying a house in an area with a history of earthquakes, flooding, coastal hazards, or land instability.

The good news is that many homes in Canterbury are readily insurable. However, you shouldn't assume that a property is insurable simply because the current owner has insurance, or that you'll automatically be offered the same cover at the same price.

Here are the main things to investigate before you buy.

1. Earthquake history and previous damage

This is one of the most important insurance considerations when buying in Canterbury.

The Canterbury earthquake sequence of 2010–2011 caused extensive damage to homes, foundations, underground pipes and land. Even properties that look perfectly fine today may have a history of significant damage or repairs. The Natural Hazards Commission specifically recommends extra checks when buying in the region. Source: Natural Hazards Commission Toka Tū Ake.

What this could mean for your insurance:

• Higher premiums or excesses: An insurer may assess the property's earthquake exposure and damage history when determining its terms.
• Restricted cover: Depending on the property's condition and risk, an insurer may impose exclusions or restrictions.
• Difficulty obtaining insurance: Previous unrepaired damage or unresolved claims may make it harder to secure suitable cover.
• Future claims complications: Previous earthquake damage can complicate a new claim if the extent of existing damage or repairs is unclear.

What to check before buying

Ask the seller for the property's earthquake claim history, including any relevant EQC (now Natural Hazards Commission) and private insurance records.

Look for:

• Foundation repairs or replacement.
• Structural repairs and engineering assessments.
• Evidence that repairs were completed to an appropriate standard.
• Previous damage to underground drainage and sewerage pipes.
• Outstanding or unresolved earthquake claims.

The Natural Hazards Commission provides guidance on requesting historical claim information. You can also search its Natural Hazards Portal for information about settled claims.

My advice: Don't rely solely on a standard building inspection. For a property with a significant earthquake history, consider a structural engineer's assessment and, where appropriate, a geotechnical report.

2. Liquefaction and land instability

Some parts of Canterbury are susceptible to liquefaction, a process in which water-saturated soil loses strength during strong shaking. This can cause land to settle or move, potentially damaging foundations, driveways and underground services.

Land instability and settlement can be particularly relevant to insurance where:

• The property experienced liquefaction during the Canterbury earthquakes.
• The house has a history of foundation movement or settlement.
• The property sits on land with known geotechnical issues.
• There is evidence of previous landslides or unstable slopes.

How can this affect insurance?

An insurer may consider the property's land classification, foundation design, previous damage and current condition when deciding whether to offer cover and on what terms.

For example, a house with well-documented repairs and an appropriate foundation may present a different insurance risk from a similar-looking house with unresolved settlement damage.

Do not assume that every house on land susceptible to liquefaction is uninsurable. The property's individual circumstances matter.

Before committing to a purchase, investigate the land's history and any available geotechnical reports.

3. Flooding and surface water

Flood risk is another important consideration across Canterbury.

Depending on the property, potential sources of flooding include:

• Rivers overflowing their banks.
• Heavy rainfall and surface-water flooding.
• Low-lying land with poor drainage.
• Localised flooding associated with stormwater systems.
• Coastal inundation in areas exposed to sea-level rise and coastal hazards.

Even if a property has never flooded, its location and exposure to future flooding may influence insurance availability and cost.

What could happen to your insurance?

Depending on the insurer's assessment, a property with elevated flood risk could face:

• Higher premiums.
• Higher excesses for flood-related damage.
• Restrictions or exclusions for certain types of damage.
• More difficulty obtaining comprehensive cover.

Flood damage also needs to be understood in the context of New Zealand's natural hazards insurance arrangements.

The Natural Hazards Commission's NHCover provides limited protection for residential land damaged by certain natural hazards, including flooding. However, this is not comprehensive insurance for all land, buildings, or flood-related losses. Your private home insurance policy remains important. Read the official NHCover guide.

What should you investigate?

Before buying, check the relevant council's flood maps and hazard information. Look at the property's specific address and consider:

• Whether the house itself is within a mapped flood hazard area.
• Whether floodwater could affect access to the property.
• Whether the property has a history of flooding.
• Whether the council has identified future flood risks.

A house outside a mapped flood zone is not necessarily free of flood risk, so also consider the property's immediate surroundings and drainage.

4. Coastal hazards and sea-level rise

If you're considering a coastal property in Canterbury, investigate its exposure to coastal erosion, inundation and rising sea levels.

These risks can be relevant to properties near the coast, estuaries and other low-lying coastal areas.

Potential insurance implications include higher premiums, restrictions on particular risks, or difficulty obtaining cover where the insurer considers the exposure unacceptable.

The long-term issue is particularly important: a property may be insurable today but face changing insurance conditions as risk assessments evolve.

If you're considering a coastal home, investigate both current hazard information and any relevant council assessments of future coastal risk.

5. The property's construction and repair history

Location isn't the only factor. In Canterbury, the home's construction and previous repairs can be especially important because of the region's earthquake history.

Insurers may want to understand:

• Whether the foundations are suitable for the site.
• Whether structural earthquake repairs were completed appropriately.
• Whether the home has unresolved damage.
• Whether alterations or extensions have the appropriate consents.
• Whether the building materials and construction affect repair or replacement costs.

A well-maintained, properly repaired house may be easier to insure than a property with unresolved structural problems, even when both are in the same neighbourhood.

If you're buying an older house, check its building consent history and obtain a thorough pre-purchase inspection.

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6. How New Zealand's natural hazards insurance works

It's worth understanding the basic system before buying.

In New Zealand, the Natural Hazards Commission Toka Tū Ake provides a first layer of natural hazards insurance for eligible residential properties.

For a qualifying home, NHCover can provide protection against specified natural hazards, including earthquakes and landslides. It also provides limited cover for certain residential land damage.

Private insurers provide cover above the applicable statutory limits and for other insured risks, subject to the policy terms. A home insurance policy that includes fire cover is generally necessary to access NHCover. Source: Natural Hazards Commission.

There are two important things to understand.

First, NHCover doesn't guarantee that a private insurer will offer you a policy on any terms you want. The property's insurance history, condition and risk profile still matter.

Second, natural hazards cover doesn't protect you against every financial consequence of a disaster. For example, land cover is limited, and not every repair, retaining wall, driveway or landscaping cost is covered.

For these reasons, it's important to check the actual policy terms rather than relying on the existence of government-backed natural hazards insurance.

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7. What I would do before making an offer

I'd treat insurance as part of the pre-purchase due diligence, rather than leaving it until after the purchase agreement is unconditional.

Here's the order I'd follow.

Step	What to do	Why it matters
1	Get an insurance quote for the specific property.	Establish whether cover is available and what it costs.
2	Ask about exclusions and excesses.	A policy may be available but offer less protection than you expect.
3	Request the property's earthquake claim history.	Identify previous damage, repairs and outstanding issues.
4	Obtain a building inspection.	Check the home's current condition and repair quality.
5	Consider a structural or geotechnical assessment if warranted.	Investigate foundation, land or structural concerns.
6	Check council hazard maps and property records.	Identify potential flooding, liquefaction and other land risks.
7	Have your solicitor review relevant records and the sale agreement.	Understand material risks and protect your position before committing.

One particularly important precaution

Get written confirmation of acceptable insurance before your purchase becomes unconditional.

Don't rely on the seller's existing policy or a general online quote. Ask the insurer to assess the actual property, including its address, construction, condition and known claims history.

If the insurer identifies concerns, ask whether they can be resolved through further documentation, engineering assessments or repairs.

Where appropriate, discuss an insurance-related condition with your solicitor before signing the agreement. The wording and timing matter, so don't assume that an ordinary building inspection condition will protect you if you cannot obtain insurance.

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8. Is Canterbury generally a bad place to buy because of insurance?

No. Canterbury is a large region, and insurance risk varies considerably between individual properties.

A house with a documented repair history, sound foundations and low exposure to other natural hazards may be a perfectly reasonable purchase. A property with unresolved earthquake damage, significant flood exposure or uncertain land stability deserves much closer scrutiny.

The important distinction is between the general risks associated with Canterbury and the specific risks associated with the house you're considering.

You don't necessarily need to avoid the region. You do need to investigate the property properly.

Let me narrow this down for you

Are you considering buying in Christchurch or elsewhere in Canterbury, such as Rangiora, Kaiapoi, Rolleston, Ashburton or a rural area?

The location can make a significant difference to which insurance risks deserve the most attention. If you have a particular town or suburb in mind, I can help you investigate the relevant hazards and what they might mean for getting home insurance.