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In New Zealand, earthquake and flood exposure should be a major factor in choosing house insurance, because the key question is not just “am I covered?” but “will the cover be enough, and will the policy respond to the risks this property actually faces?”

1. Understand what government natural hazard cover does — and does not do

Most home insurance policies that include fire cover give you access to government natural hazards cover through Natural Hazards Commission Toka Tū Ake. This provides a first layer of cover for certain natural hazards, including earthquakes, landslides, volcanic activity, tsunami, and some residential land damage from storms and floods. Natural Hazards

However:

• It is not a replacement for full private home insurance.
• It has limits, including a building cover cap (generally $300,000 plus GST for eligible claims under the current scheme), with private insurance covering amounts above that if your policy provides it. Natural Hazards
• It generally does not cover your temporary accommodation costs, contents, or many indirect losses. Natural Hazards

So your private policy still matters greatly.

2. For earthquake-prone areas, focus on rebuild adequacy

When comparing insurers, check:

• Sum insured: Is it enough to rebuild the house to current standards, including demolition, debris removal, professional fees, and inflation in construction costs?
• Policy wording: Does it provide replacement cover, or only a capped payment?
• Excess: Can you comfortably pay the earthquake excess if a major event occurs?
• Unusual features: Older homes, masonry, retaining walls, hillside sites, and complex designs may need closer attention.

A cheaper premium may not be useful if the policy has a low sum insured or restrictive settlement terms.

3. For flood exposure, check the details carefully

Flood risk can affect insurance differently from earthquakes.

Ask:

• Is the building covered for flood damage?
• Is land movement or erosion covered?
• Are retaining walls, driveways, drainage systems, and landscaping covered or excluded?
• Are there exclusions for gradual water damage, poor maintenance, or groundwater?

In New Zealand, government natural hazards cover has a different role for flooding: it can cover some residential land damage from storm or flood, but you should not assume it covers all flood-related house repairs. Natural Hazards

4. Before buying a house, investigate the hazard history

Insurance decisions should be made alongside property due diligence. Check:

• Whether the property is in a known flood-prone area
• Whether there are natural hazard notices or council information affecting the property
• Whether the house has previous earthquake, flood, or landslip damage
• Whether insurers are willing to offer normal cover

A house that is difficult or expensive to insure can also affect future resale.

5. Compare insurers on claims handling, not only price

Useful questions to ask:

• “How would you handle a major earthquake claim?”
• “Do you cover the full rebuild cost or a fixed amount?”
• “How do you assess flood damage?”
• “What exclusions apply to this property type?”
• “What excess would apply for earthquake or natural hazards?”

The insurer’s ability to manage a large-scale disaster claim can matter as much as the premium.

6. Practical rule of thumb

• High earthquake exposure: prioritise strong rebuild cover, appropriate sums insured, and manageable excesses.
• High flood exposure: prioritise clarity on flood exclusions and land/building distinctions.
• Both risks: do not choose based on price alone; the policy wording and insurer appetite for the property are critical.

If you are buying a particular property in New Zealand, the most useful checks are usually the property’s flood history, natural hazard information, insurance availability, and rebuild estimate before making an offer.