# DI-H-K-01: Our insurer agreed to repair storm damage, but the builder found asbestos during the work. What should happen to the claim now?

Collected 11 October 2026

[Home and contents insurance study](https://nzbrands.ai/research/insurance/home-contents-insurance)

## ChatGPT

Answer ID: 18a6d080-0e73-42f2-8652-4ceab5be6e40

In New Zealand, finding asbestos during an insurer-approved storm-damage repair should trigger a reassessment of how the repairs are carried out, what additional costs are covered, and whether the original repair plan can continue. It does not automatically mean your entire insurance claim is declined, nor does it automatically mean the insurer must pay for all asbestos removal.

The key distinction is between the cost of repairing the storm damage that was accepted and the additional cost of dealing with asbestos discovered during that work.

## What should happen next?

1. Work in the affected area should pause. The builder should avoid disturbing suspected asbestos until it has been appropriately assessed. If asbestos removal is required, the work should be planned and carried out by suitably qualified or licensed people where required.
2. The builder should notify the insurer. They should document where the asbestos was found, what type of material is involved if known, how it affects the repair, and the extra work and costs required.
3. The insurer should reassess the claim. It should determine whether asbestos-related costs are covered under your policy, whether further investigation or removal is authorised, and how the accepted storm repairs can safely proceed.
4. You should receive a clear decision about the additional costs. Ideally, the insurer should confirm in writing which costs it will pay, which it will not, and why. The existing approval for storm repairs should be distinguished from the decision on the newly discovered asbestos.

## Will insurance pay for the asbestos removal?

Possibly — it depends on the exact wording of your policy and the circumstances in which the asbestos needs to be removed.

For example, some New Zealand home insurance policies expressly cover asbestos removal from the immediate area of a home damaged by an accepted insured event, while excluding other asbestos-related losses. Other policies may impose limits or different conditions. [Exclusions](https://www.aon.co.nz/AonNZ/media/AonMe/AonMe-Home-Residential-Policy-1-July-2024.pdf)[Residential](https://www.nzi.co.nz/en/documents-forms/resources/NZI-Residential-Building-Multi-Dwelling-Policy-Wording.html)

The insurer should consider these separate questions:

- Storm damage repairs: These have already been accepted, so ask whether the original approved scope remains in place.
- Asbestos removal: Is removal necessary to carry out the covered repairs safely, and does your policy cover that cost?
- Additional reinstatement costs: Will the insurer pay for extra work needed to restore the damaged area after removal?
- Pre-existing asbestos elsewhere: Is it outside the affected repair area, and does the policy exclude its removal?
- Temporary accommodation or delays: Check whether your policy provides benefits while the property or affected rooms cannot be used.

The important point is that the presence of asbestos does not, by itself, establish that the insurer can disregard its existing approval for storm repairs. Equally, that approval does not necessarily extend to every new cost.

## What I would do now

Email the insurer and claims manager so there is a written record. Ask them to confirm:

- Whether the asbestos discovery is being handled as an extension of the existing claim.
- Whether they will arrange and pay for an asbestos survey and any necessary removal.
- Whether the original storm repairs will resume once the area is safe.
- Who is responsible for additional costs, delays and any temporary accommodation.
- If they decline any costs, the exact policy wording and reasons for that decision.

Do not independently authorise substantial additional work before agreeing it with the insurer, unless urgent action is needed to protect people or prevent further damage. Keep the builder's report, photographs taken without disturbing the material, quotes and all correspondence. WorkSafe advises stopping work and keeping people away if asbestos is unexpectedly discovered. [Working with or near asbestos](https://www.worksafe.govt.nz/topic-and-industry/asbestos/asbestos-information-for-tradespeople/working-with-or-near-asbestos/)[Asbestos in the home](https://www.worksafe.govt.nz/topic-and-industry/asbestos/asbestos-information-for-homeowners/asbestos-in-the-home/)[Insurance](https://www.consumerprotection.govt.nz/help-product-service/managing-money/insurance)

## What if the insurer refuses to pay?

Ask for a formal written decision and use the insurer's internal complaints process. If you cannot resolve the dispute, you can approach the insurer's independent financial dispute resolution scheme. You can identify the appropriate scheme through [New Zealand Consumer Protection](https://www.consumerprotection.govt.nz/help-product-service/managing-money/how-to-complain-about-your-financial-service-provider). [Making a complaint about your financial service provider](https://www.consumerprotection.govt.nz/help-product-service/managing-money/how-to-complain-about-your-financial-service-provider)[Resolving disputes and claims](https://www.nzcrs.govt.nz/our-services/resolving-disputes-and-claims/)

## I can help you work out what your insurer should cover

Two details would make a substantial difference:

1. Which insurer are you with?
2. Where was the asbestos found? For example, in storm-damaged roofing or cladding that must be removed to complete the repair, or in another part of the house that was not directly damaged by the storm.

With those details, I can look at the relevant policy wording and help you assess whether the insurer should consider paying for removal as part of the accepted claim.

## Gemini

Answer ID: 4008898f-8e54-4dc0-a50d-bfd31311c8bc

When asbestos is uncovered during the course of approved storm-damage repairs, it changes how the project must proceed legally and practically, but **it does not automatically invalidate your insurance claim**. 

How the claim handles this situation depends on your policy wording, whether the asbestos itself was damaged by the storm, and how the discovery impacts the agreed repairs.

---

### What Should Happen to Your Claim Now

#### 1. The Work Must Stop Immediately (Health & Safety)
Under New Zealand law (regulated by WorkSafe NZ), once asbestos or suspected asbestos materials are uncovered and risk being disturbed, work in that area must pause. Your builder or contractor is legally required to ensure that safe management or testing procedures are followed. Do not attempt to touch or clear the material yourself.

#### 2. Notify Your Insurer Straight Away
Contact your insurance company or claims manager immediately to inform them that asbestos has been found in the work zone. 
* **The storm damage remains covered:** The original reason for the claim (the storm damage) is still valid. 
* **The asbestos complication:** Standard home insurance policies in New Zealand generally exclude the ongoing cost of pre-existing asbestos *unless* you have a specific extension. However, how insurers handle the *removal* required to complete the repair varies based on the scenario:
  * **If the storm directly damaged the asbestos-containing material** (e.g., a tree crashed through an asbestos-cladded wall or roof), insurers will often cover the safe removal and replacement of that specific damaged section as part of putting your home back to its pre-loss condition.
  * **If the asbestos wasn't damaged by the storm, but blocks access** to fix what *was* damaged (e.g., builders need to cut through an asbestos soffit or lining to repair storm-damaged framing behind it), a grey area often occurs. The insurer is responsible for completing the storm repair, but standard policy exclusions mean you may need to negotiate who pays for the specialized asbestos safe-handling or removal required to *access* the repair site.

#### 3. Professional Testing and Identification
Your insurer will likely require confirmation that the material actually contains asbestos. They may send an independent assessor or ask your builder to arrange an accredited laboratory test. 

#### 4. Revised Scope of Work and Quote
Once the presence of asbestos is confirmed, the builder and a licensed asbestos removalist must scope the safe removal or encapsulation required. 
* The builder will submit a variation or a revised quote to your insurer incorporating the necessary compliance and safety steps.
* Your insurer will review the scope to determine what portion of the asbestos handling is tied directly to the indemnifiable storm damage.

---

### Recommended Next Steps

1. **Log everything in writing:** Ask your insurer to outline in writing their position on the asbestos discovery and whether they cover the safe-removal costs required to execute the approved storm repairs.
2. **Request a joint assessment:** If there is a dispute over whether the asbestos removal is an insured repair cost or a pre-existing maintenance cost, request that the insurance adjuster speak directly with your builder and the asbestos contractor.
3. **Check your policy wording:** Review your residential policy's specific exclusions regarding hazardous substances or "wear, tear, and deterioration" to understand your baseline terms.

*Would you like assistance drafting an email or script to communicate this update to your insurance claims manager?*

## AI Overviews

Answer ID: 51c82a82-9115-4472-a7a4-018257186b0e

When asbestos is discovered during storm repairs in New Zealand, **the repair work must halt immediately** to ensure health and safety compliance, and the **insurance claim will enter a complex review phase**.

How your claim proceeds depends heavily on whether the asbestos was directly damaged by the storm, or if it is simply a pre-existing material being disturbed by the building work.

* * *

1\. The Immediate Step: Work Stops

Under New Zealand health and safety laws, the builder cannot continue working once asbestos is suspected. The area must be isolated, and an independent test must be conducted to confirm its presence.

2\. How the Insurance Claim Splits

New Zealand home insurance policies are strictly limited to covering **sudden, accidental, physical loss or damage** caused by the event (the storm). They do not cover pre-existing house maintenance or hazardous material removal unless it was directly impacted.

The claim will typically go down one of two paths:

Scenario| What It Means| Who Pays?
---|---|---
**The asbestos was damaged _by_ the storm**
_(e.g., storm winds tore away asbestos-cement roofing or smashed a textured ceiling)_| The removal and clean-up of the asbestos are considered part of repairing the direct storm damage.| **The Insurer Pays.** They will cover the specialized asbestos removal and disposal as part of the overall repair cost.
**The asbestos is undamaged, but is in the way of repairs**
_(e.g., a wall needs to be cut into to fix internal structural storm damage, but the wall contains undamaged asbestos)_| New Zealand insurance policies almost universally exclude the cost of removing or mitigating undamaged hazardous materials.| **You (The Homeowner) Pay.** The insurer will pause repairs. You must pay a licensed professional to safely remove the asbestos before the insurer's builders will return to complete the storm repairs.

3\. Extra Costs to Consider

 * **The Testing Costs:** Generally, insurers will cover the initial cost of testing the material to determine if it is asbestos, as this is a necessary part of assessing how to safely proceed with the storm damage claim.

 * **Licensed Specialists:** If the area of asbestos being disturbed is more than 10m², New Zealand regulations require a Class A or Class B licensed removalist to handle it.

Next Steps to Progress Your Claim

 1. **Request the Report:** Ensure the builder or assessor gets a formal test report confirming the presence and location of the asbestos.

 2. **Talk to Your Claims Manager:** Ask them directly for a written decision on whether they deem the asbestos to be "directly storm-damaged" or "undamaged pre-existing material."

 3. **Get Quotes:** If the insurer decides the asbestos removal is your responsibility, ask the builder for a quote from a licensed specialist to clear it, so the main insurance repairs can resume as quickly as possible.

To help me give you more relevant information, **was the material containing asbestos physically broken or torn apart by the storm itself** , or was it discovered inside a wall or ceiling that the builder just started cutting into?

## Google AI Mode

Answer ID: c83b2b2a-2cf1-468f-836c-8d9f56fba323

When asbestos is unexpectedly uncovered during authorized storm damage repairs, it creates a complication regarding who pays for the safe handling, removal, or remediation of that material.

How the claim proceeds depends heavily on the wording of your specific insurance policy, how the asbestos relates to the storm event, and New Zealand's strict regulatory environment regarding hazardous building materials.

What Typically Happens Next

 * * **Work must pause immediately:** Under New Zealand's Health and Safety at Work regulations managed by WorkSafe New Zealand, the builder cannot legally proceed with repairs that disturb suspected asbestos until its presence is managed safely.

 * **Review of policy exclusions:** Standard residential insurance policies in New Zealand generally contain an explicit exclusion for losses, liabilities, or removal costs associated with asbestos. If your policy has a broad asbestos exclusion, the insurer may cover the original storm damage repair, but decline to pay for the separate cost of removing or remediating the newly discovered asbestos.

 * **Evaluating direct causation:** An exception can sometimes apply if the covered storm event directly damaged or exposed the asbestos-containing material itself (for example, a tree falling and smashing an asbestos-roofed shed or cladding). If the asbestos was hidden behind intact walls or ceilings that just needed cosmetic or structural fixing due to water leaks, insurers usually view the asbestos as a pre-existing condition of the home rather than direct storm damage. [www.chemcare.co.nz]

 * **A revised scope of work:** Your builder or insurer will need to reassess the repair strategy. This might involve getting a licensed asbestos assessor to test the material, and shifting from standard repairs to engaging a licensed asbestos removalist, or exploring encapsulation (sealing/covering the material in place if legally and structurally viable).

 *

Recommended Steps to Take

 1. **Contact your insurer immediately:** Inform them that the builder has encountered suspected asbestos. Ask them explicitly how their policy handles asbestos discovered during the remediation of a covered event. [www.worksafe.govt.nz]
 2. **Request the exact wording of your policy:** Review your policy schedule and the specific wording around "asbestos exclusions" or "matching/upgrade provisions" to see how they apply to hidden pre-existing hazards.
 3. **Ask the insurer for a formal written decision:** If they agree or refuse to cover the asbestos mitigation costs, get their position in writing detailing why.
 4. **Escalate if there is a dispute:** If the insurer refuses to cover removal costs that you believe should form part of restoring your home to a safe, repaired state—and you cannot reach an agreement—you can take the complaint to your insurer’s internal dispute resolution service. If unresolved, you can escalate it to an independent financial ombudsman scheme such as the Insurance & Financial Services Ombudsman (IFSO) or Financial Services Complaints Limited (FSCL). The Complaints Process | FSCL New ZealandInsurance & Financial Services Ombudsman Scheme

If you'd like, share:

 * The **name of your insurer**
 * Whether the asbestos was **directly damaged by the storm** (e.g., a hole knocked through an old wall/roof) or just **uncovered behind a surface**

I can help outline what specific policy clauses to look for.