Insurance firms unmoved

Press, 12 October 1988, Page 4

Insurance firms unmoved

By

PAT TAYLOR

in Greymouth The announcement by the Prime Minister; Mr Lange, of flood protection works for the commercial area of Greymouth by March 31 next year may or may not persuade insurance companies to review insurance coverage in the business area. Some major companies have removed flood cover from their insurance policies on residential properties and businesses in the area affected by the flooding of September 13.

The Greymouth manager of State Insurance, Mr Ken Rowater, said it would be writing to policy holders later in the week to explain the situation. “We have cancelled flood cover for all residential properties which have already claimed twice or more. Any residential property which has claimed only once will still be eligible for flood cover, but businesses in the town area will all be wiped. We only have six risks in the town

area.” New Zealand Insurance has decided on removing flood cover from policies on properties within the area of last month’s flood as they come up for renewal.

The N.Z.I. manager at Greymouth, Mr Paul Wapher, said present policy holders would still be covered for flood until their policies expired. “We are past the stage where a flood is a risk; nowadays it is a certainty,” he said.

Colonial Mutual is said to have gone further, and cancelled all insurance, including fire and accident, on two properties in Greymouth, but has said it would retain cover on the branches of two nationwide chains in the town. Commercial Union has not made a decision, but could follow the major companies. However, A.M.P. has decided to continue its flood cover for its clients, although any further flooding could lead to a review of the situation.