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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. ExclusionsResidential

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 asbestosAsbestos in the homeInsurance

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. Making a complaint about your financial service providerResolving 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.