Published: 8 April 2025
Buying and insuring in a flood zone
Floods are the most frequent natural disaster in New Zealand *. Many properties lie in or near flood zones. Consequently, insurers exercise caution when dealing with flood-risk homes.
Here are the key factors to consider before purchasing a house in a flood zone.
One way to find out if your house is in a flood zone is to obtain a copy of the LIM [Land Information Memorandum] report for the house.
If the house has been identified by the council as being at risk to any natural hazards (including floods) this will be included in the LIM report.
A LIM report can be purchased online though your local council’s website.
The Certificate of Title will inform you if a Section Notice has been issued. Section numbers: 36, 73 or 74 of the Building Act relate to natural hazards.
In simple terms, these sections mean that the property is situated on land subject to a natural hazard and that a building consent was granted with specific conditions relating to that hazard.
Your lawyer is best to do this review.
Most local councils now release public online Geo Mapping for natural hazard risks on houses. Try searching the internet for your local council’s name and adding ‘hazard maps’ to your search term.
Once you have found your council’s online mapping tool you will then need to filter through the different natural hazard types. Then enter your address and add the flood zone layers and you will be able to see if your property lies over a flood zone.
This should also include information available about the extent of the flood risk.
Flood zones cover much of New Zealand. Some are higher risk while others might only be minor, so it’s important to get an understanding of the extent of the flood risk.
Risk is usually defined by the annual frequency. The 100-year flood zone is the standard measure for evaluating flood hazards. This means research and history predicts there is a 1-in-100 chance of a flood event each year.
You can generally find this information either on the LIM report or mentioned on the council data.
There is a lot of helpful information on the natural hazards portal including information about any settled Natural Hazard Claims (NHC).
Purchasing or owning a house in a flood zone may affect the price you pay for your insurance and the availability of cover. That’s why it’s important to talk to your broker first. Any questions? Get in touch with your Rothbury broker.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, financial, or professional advice. For specific advice tailored to your situation, please consult with a qualified professional.