$31 million in insured losses from summer earthquakes in central New Zealand

Total insured losses from the central New Zealand earthquakes this past July and August was $31.1 million (all figures in New Zealand dollars), the Insurance Council of New Zealand (ICNZ) reported Thursday.

Most damaging was the Aug.16 earthquake, accounting for $16.2 million of total insured losses, while the July 21 quake made up $14.9 million of the total, notes a statement from ICNZ.

Commercial property suffered the most, making up $23.2 million of the total cost accounted for in material damage across the two events. There was also $600,000 of business interruption insurance paid out across the two events.

For homeowners, the August quake proved most damaging. ICNZ reports that there was $5.2 million in damage to home and contents for the quake compared to $2.0 million for the July event. These figures cover the damage over the first $100,000 to a house, which is covered by the Earthquake Commission (EQC).

Citing EQC figures, ICNZ notes that 21 over cap residential property claims were passed on to private insurers as a result of the earthquakes.

With regard to commercial damage, however, the July quake was more costly. Insured damage was $12.6 million compared to $10.6 million for the event in August.

EQC provides natural disaster insurance for residential property, administers the Natural Disaster Fund, and funds research and education on natural disasters and ways to reduce their impact. There is no EQC coverage for commercial properties.

Following the earthquake in August, catastrophe modeller RMS noted: “The earthquake caused light damage, but triggered many fears. Businesses evacuated properties for the safety of their personnel while building safety assessments were carried out.”

And after the July 21 quake, RMS suggested the event created some concern “that a new sequence is under way, similar to the Canterbury Earthquake Sequence in 2010/2011.”

Wellington remains the region with the greatest concentration of exposure at risk from the highest earthquake hazard, noted RMS. Catastrophe modeller AIR Worldwide added the region had experienced several small- to-moderate earthquakes in recent weeks, all of which occurred in the Cook Strait, which separates New Zealand’s North and South Islands.