Weighing all Options After a Flood: Fix or Sell The House?

Authorities in New Zealand have predicted further heavy rain for Auckland in the coming days as insurers tabulate the costs of what is likely to be the costliest weather disaster the country has ever experienced. The La Nina weather phenomenon is causing the north of the North Island of New Zealand to experience above-average rainfall. Auckland has already seen 40% of its annual average rainfall and more than eight times the city’s normal January rainfall, according to the National Institute of Water and Atmospheric Research (NIWA).

Although the predicted NZ$31 billion insurance costs of two large earthquakes in Christchurch in 2010-2011 are much more expensive than the estimated NZ$97 million bill for flooding on the West Coast in 2021, the clean-up cost is expected to surpass that amount. According to economists, the recovery and reconstruction could exacerbate inflationary pressures in New Zealand as more construction work is required to restore or replace homes and infrastructure damaged by the flooding, as well as automobiles and household goods.

Individual insurers in New Zealand have their own perspectives on risk and pricing, and the region’s claims history—whether for coastal catastrophes, river floods, or terrain that consistently slips—is significant. Differential pricing based on risk is nothing new, as insurers already factor prospective risks into insurance prices. Annual weather occurrences have increased, and the sector now anticipates paying out more than $300 million in general insurance claims each year as a result. Global weather disasters are another factor since they affect New Zealand premiums due to the way local companies reinsure with major international firms. However, as more natural disasters occur globally, the global reinsurers are paying out, making it more difficult for local insurers to enter the market.

It goes without saying that it is also expensive to restore flood damage; it’s obviously not ideal to have a house that needs to be sold but you should be able to do it if you document everything and work closely with your insurance company. You can usually put things back together and continue living your life with only minor damage. However, if the damage is severe and the anticipated repair work would take many weeks, it might be worthwhile to consider selling.

Thus, homeowners can sell their flood-damaged property to WeBuyProperty.co.nz rather than opting for the path to recovery and reconstruction. We can take damaged houses off your hands quickly and save you from the hassles of intensive repairs. Meanwhile, it is advisable for you to take insurance claims for your damages and then sell it off.