Land Categorisation and how insurance may be affected

Property level interventions are needed to manage future severe weather event risk, including in tandem with community level interventions.

Property specific measures are necessary e.g., improved drainage, raising houses is necessary.

If you have an open claim for damage from the weather events, the normal claim and post-claim policy review processes will be followed.

Your insurance covers the physical damage to your home from the event/s, up to your policy’s sum insured amount or any other policy limits and benefits that may apply.  

The cost of planning or making property level interventions to prevent future flood or land damage is not covered by your insurance policy. 

Properties in Category 2P have been identified as requiring intervention to manage future risk of damage from future severe weather events, this means your insurance may change at your policy’s next annual renewal to reflect the existing risk. 

These changes could include: 

• A separate flood excess applied to your policy, which would apply for future flood claims.  
• The premium amount you pay for your cover might change to reflect the level of risk to your property from future severe weather events.

If you have contents insurance for belongings kept at the property, these changes may also apply to that policy. 

We will contact you approximately six to eight weeks ahead of your home policy renewing about the changes to your home policy more specifically.  

Intervention work on Category 2P properties
The repairs of your property, and any property-level intervention works required to manage future risk, such as adding drainage or raising the level of foundations, need to be started within a reasonable timeframe. 

We understand that you may need time to consider your options, and that what is reasonable will depend on your personal circumstances. 

If the works are not completed, or started within a reasonable timeframe, we may no longer be able to offer insurance cover. Please contact us if you intend to delay repair or intervention works.

Interventions may be required/ possible but insufficient information to provide initial categorisation (these may subsequently move between Categories 2, to 1 or 3.

If you have an open claim for damage from the weather events, the normal claim and post-claim policy review processes will be followed.

We understand that properties provisionally placed in Category 2A, will move into a different category. 

If your property is currently in Category 2A, it may be prudent to wait until the Category is changed to another one, due to the possibility it may move to Category 3.

Please contact us if you intend to delay repair or intervention works.

Future severe weather event risk cannot be sufficiently mitigated. 

Some current land uses may continue to be acceptable, while for others there is an intolerable risk to human safety.

For example, the property may face an unacceptable risk of future flooding or could be subject to unstable land that poses an ongoing risk.

Currently, if you have an open claim for damage from the weather events, the normal claim and policy review processes will be followed.

Your insurance covers the physical damage to your home from the event/s, up to your policy’s sum insured amount or any other policy limits and benefits that may apply.  

Your property being placed into Category 3 does not change the amount you are entitled to under your insurance policy, based on the damage to your property caused by the weather event/s. 

If your property is confirmed as Category 3, we will no longer be able to provide insurance cover due to the high risk to people and property from future severe weather events, as identified by your local council.

After your property has been confirmed as Category 3, we will contact you directly to discuss how this will affect your insurance cover. Your property being placed into Category 3 will not result in immediate cancellation of your insurance cover, however, please read the information below to understand when your property’s cover will be cancelled.

If you’ve had a claim that’s been settled as a partial loss, and the home is still habitable. 
We won’t cancel your cover immediately; we will continue to provide cover until the purchase of your property is completed by the council, or when their purchase offer expires.

If the home is uninhabitable 
If the home on a Category 3 property is uninhabitable due to the damage caused by the severe weather events, your insurance will be cancelled following cash settlement of your claim.  

Unfortunately, we will not offer new cover for any new or repaired buildings on the property due to the very high level of risk to your property from future severe weather events. 

If you’ve had a claim that’s been settled as a total loss.
If you have a weather-related insurance claim that is settled as a total loss, or for the full sum insured amount on your policy, your insurance will be cancelled following cash settlement of your claim. This is part of our normal process for total loss home claims. 

Unfortunately, we will not offer new cover for any new or repaired buildings on the property due to the high level of risk to your property from future severe weather events. 

If you receive a property purchase offer from your council
If you receive a voluntary property purchase offer from your local council and your insurance hasn’t already been cancelled, your insurance will be cancelled when the purchase is completed, or when that offer expires if you choose not to accept it. 

What we need from you
When the sale of your property to the council is complete, or if you choose not to accept the council’s offer, please let us know.

Unused Premium Refunds
If your insurance is cancelled part-way through the policy’s period, we will refund any unused premium, in accordance with your policy wording.