Buying a house in Southland: What could affect your insurance?

Yes. Southland has several location-specific risks that can affect your ability to insure a house, the premiums you pay, and the excesses or exclusions on your policy. These include flooding, coastal hazards, earthquake risk, severe weather, and the condition of older homes.

The important thing to understand is that insurance risk can vary considerably between properties, even within the same town. A house on elevated ground may have a very different risk profile from one near a river, on a low-lying floodplain, or close to the coast.

If you're considering buying in Southland, I'd investigate the insurance position before making an unconditional offer. Here are the main things to look out for.

1. Flooding: Probably the first thing I'd investigate

Flood risk is one of the most important insurance considerations in Southland.

Environment Southland identifies flooding as the region's most common natural hazard. The major river systems include the Mataura, Ōreti, Aparima and Waiau, all of which can cause significant flooding. Historical flooding has affected communities across the region. es.govt.nz, es.govt.nz

Areas and property types worth investigating include:

• Gore and Mataura: Check proximity to the Mataura River, local floodplains and the protection provided by flood banks.
• Wyndham and surrounding areas: Investigate historical flooding and whether the property relies on flood protection infrastructure.
• Invercargill and surrounding areas: Check the specific property's exposure to flooding, including from local waterways and surface water.
• Rural properties: Look beyond river flooding. Poor drainage, saturated paddocks, low-lying land and access roads that flood can also be relevant.

These are places to investigate, not places where insurance is necessarily difficult to obtain. The risk can vary substantially between neighbouring properties.

Environment Southland notes that flood banks reduce the impact of flooding but cannot eliminate the risk from extreme rainfall. Its flood modelling programme examines how floodwaters could affect communities under different scenarios. es.govt.nz

How could flooding affect your insurance?

Depending on the property's risk profile, an insurer might:

• Charge a higher premium.
• Apply a higher excess for certain types of damage.
• Restrict cover for some risks or decline to insure the property.

These are potential outcomes, not automatic consequences of living in a flood-prone area.

What to do: Check the Southland Natural Hazards Portal. You can search an address for flood hazards and historical flood information. You can also ask Environment Southland for further information about a property. es.govt.nz

2. Coastal flooding and erosion

If you're considering a property near the coast, coastal hazards deserve particular attention.

Parts of Southland's coastline may be exposed to:

• Coastal erosion.
• Storm surges and unusually high sea levels.
• Coastal inundation during severe weather.
• Longer-term sea-level rise.

These hazards can affect the house itself, the land around it and access to the property.

Southland District Council has undertaken modelling of coastal flooding under different sea-level-rise scenarios. This makes it worth investigating both current exposure and future risks when buying a coastal property. southlanddc.govt.nz, southlanddc.govt.nz

The insurance issue

Coastal erosion is particularly important because it is not covered by the Natural Hazards Commission's standard natural hazards cover. Private insurance may cover some coastal risks, but you should not assume it will cover erosion or the gradual loss of land.

Insurers may also reassess cover as the risk to a property changes. This can affect premiums, exclusions and whether cover remains available. settled.govt.nz

My advice: If you are looking at a coastal home, ask the insurer specifically about coastal inundation, storm damage, erosion and any relevant exclusions. Get the answers in writing.

3. Strong winds, heavy rain and harsh winters

Southland is exposed to weather systems arriving from the west and south. Strong winds are common in exposed parts of the region, while frost and snowfall occur relatively frequently in winter. niwa.co.nz

When assessing a property, pay particular attention to:

• The condition and age of the roof.
• Loose roofing iron, deteriorated roofing materials and damaged flashings.
• Trees close to the house that could fall during storms.
• Gutters, downpipes and drainage around the foundations.
• Signs of dampness, mould or water entering the house.
• Whether outbuildings, sheds and garages are adequately maintained.

These factors do not necessarily make a house uninsurable. However, poor maintenance or existing damage can complicate obtaining cover or making a claim.

For rural homes, also consider whether the property is particularly exposed to wind and whether outbuildings, water systems and other structures are included in the proposed policy.

Practical tip: Arrange a thorough pre-purchase building inspection. Ask the inspector to pay particular attention to roof condition, moisture, drainage and any evidence of previous storm or flood damage.

4. Earthquake and ground conditions

Southland isn't exempt from earthquake risk.

Depending on the location, you may also need to investigate:

• Proximity to mapped faults.
• Ground-shaking hazards.
• Liquefaction susceptibility.
• Ground instability or landslides.

The Southland Natural Hazards Portal includes selected earthquake-related information, including liquefaction susceptibility and available fault and ground-shaking data. es.govt.nz

These risks do not automatically mean a property will be difficult to insure. The building's construction, foundations, ground conditions and previous damage may all matter.

What about older houses?

If you're looking at an older Southland home, establish:

• Whether it has a sound foundation.
• Whether there are cracks or signs of movement.
• Whether structural alterations were properly consented.
• Whether previous earthquake or landslip damage has been repaired.
• Whether the insurer is comfortable with the building's age and construction.

If the house has a history of natural-hazard damage, ask for the relevant insurance claim history and repair documentation, where available.

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5. What New Zealand's natural hazards insurance actually covers

An important distinction is that natural hazards insurance doesn't necessarily mean that every type of natural disaster damage is covered in full.

For most standard home insurance policies that include fire cover, the premium includes a levy that provides access to the Natural Hazards Commission's NHCover.

Broadly, NHCover provides a first layer of cover for qualifying natural-hazard damage to a home, plus limited cover for certain parts of the residential land. Private insurance generally provides additional building cover and deals with damage such as flooding of the house, subject to the policy's terms. naturalhazards.govt.nz, naturalhazards.govt.nz

Here are some important distinctions:

Hazard or damage	What to understand
Earthquake damage	NHCover can apply, with additional building cover generally provided by your private insurer.
Landslide damage	NHCover can provide an initial layer of cover for the house and limited cover for certain land.
Flood damage to the house	Your private policy's terms are particularly important. NHCover generally covers certain affected land, not flood damage to the home itself.
Coastal erosion	Not covered by NHCover. Do not assume private insurance will cover it.
Damage to driveways, landscaping or retaining walls	Cover can be limited. Check exactly what the relevant policy includes.

Sources: Natural Hazards Commission — NHCover and Storm, flood and landslide damage. naturalhazards.govt.nz, naturalhazards.govt.nz

One additional warning: Check the property's title

Certain notices on a property's record of title can affect natural hazards cover.

For example, a section 72 notice may indicate that a property is known to be affected by, or at risk from, a natural hazard. Depending on the circumstances, it can affect a subsequent claim for damage caused by the specified hazard.

If you discover a section 72, 28 or 51 notice, ask your lawyer and insurer to explain its implications before committing to the purchase. naturalhazards.govt.nz

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6. My pre-purchase insurance checklist for Southland

If I were buying a house in Southland, I'd work through the following steps before committing to the purchase.

Step 1: Check the property's hazard history

Start with the Southland Natural Hazards Portal.

Check for:

• Flood-prone land and historical flood information.
• Coastal hazards, if relevant.
• Liquefaction susceptibility and available fault information.

Then obtain a Land Information Memorandum (LIM) from the relevant council and review the property's title and available property records.

Don't rely on the absence of a hazard notation in a single report as proof that a property is risk-free.

Step 2: Get an insurance quote before going unconditional

Contact an insurer or insurance broker and provide the actual property address.

Ask them to confirm:

• Can you insure this particular house?
• What is the annual premium?
• What is the standard excess, and are there higher excesses for specific risks?
• Are flood, storm and landslide damage covered, and under what conditions?
• Are there exclusions or restrictions related to the property's location?
• Is there anything in the property's claims or hazard history that affects cover?

Don't rely on a generic online quote. A quote for an ordinary house in Southland may not reflect the actual risk associated with the property you intend to buy.

Step 3: Investigate previous damage

Ask the seller about previous flooding, storm damage, landslips and insurance claims.

Where relevant, request:

• Records of previous insurance claims.
• Reports on damage and completed repairs.
• Relevant building consents and certificates.
• Documentation relating to flood protection or drainage work.

If there has been a previous natural-hazard claim, the Natural Hazards Commission's guidance for home buyers is a useful starting point. naturalhazards.govt.nz

Step 4: Make sure your offer protects you

Discuss appropriate conditions with your conveyancing lawyer, including insurance and due diligence.

The key is to establish that suitable cover is available on acceptable terms before you're legally committed to completing the purchase.

Step 5: Consider the long-term cost

Don't just compare the initial premiums.

Think about whether future premium increases, excesses, exclusions or difficulty obtaining replacement cover could affect your household budget or the property's resale prospects.

This is particularly relevant for properties exposed to flooding or coastal hazards.

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7. So, would I avoid buying in Southland because of insurance?

No. I wouldn't rule out Southland as a whole. I'd assess each property individually.

A well-maintained house on relatively elevated land, away from major flood hazards and with no problematic claims history, may be straightforward to insure.

A house in a floodplain, a property dependent on flood banks, or a coastal home exposed to erosion could require considerably more investigation.

The critical question isn't simply whether Southland is a risky place to buy. It's whether the specific house you're considering can be insured adequately, affordably and on terms you're comfortable with.

Let me help you narrow it down

Are you thinking of buying somewhere in Gore, Invercargill, Winton, Riverton, Te Anau, or elsewhere in Southland?

If you tell me the town or general area you're considering, I can identify the local hazards worth investigating and point you towards the relevant hazard maps and council information. You don't need to share a specific street address.