Land Risk Categorisation Response

Climate change is bringing more frequent and severe extreme weather events, with many people and businesses already impacted in 2023. Local and central government are now taking a long-term view of climate risks and making decisions about where and how to build. This work will also impact how insurers make decisions about insurance cover and how we settle claims.

AIG Response to Land Risk Categorisations

AIG along with others in the insurance industry will support councils as they work alongside property owners and invest to reduce the risk to people and property in future severe weather events. We will work closely with our industry partners on our response, so your insurance broker should be your first point of contact with any questions on your policy. 

If you have received a communication about land categorisation for your property and have questions about the impact to your insurance cover, please contact your broker. If you are unsure, please check your insurance policy for their contact details.

If you have an open claim with AIG, your claim will continue regardless of the category your Council is proposing for the area your property is in, although your category may impact your decision about how to progress your claim. We understand that this will be an unsettling time and we are here to support you. Your broker will liaise with AIG on your behalf and will work with you and discuss the next steps for your claim.

Your insurance policy pays for the cost to repair physical loss or damage to your property up to your Sum Insured or any other policy limits and benefits that may apply, subject to the terms and conditions of your policy. Whether you repair in the original location, make improvements, or move to another property, your insurance monies can be put toward your recovery.

As an initial guide, if your property is categorised by council as being in a:

  • Category One area - there is no impact to your claim and you can proceed with repairing or rebuilding your property, at the same site, whenever you are ready. Insurance pays for the cost to repair physical damage to your property from the event, up to the Sum Insured or any other policy limits and benefits that may apply.  
  • Category Two area – there will be no impact on your claim as your insurance policy covers you for the cost to repair physical damage.   However, it may be prudent to fully understand what measures are required by councils to reduce risk and if any other financial assistance is available before proceeding with the repair or rebuild of your property. This may include, for example, improving drainage or raising properties to limit the impact of flooding.   You may wish to choose a cash settlement for the estimated cost to repair physical damage from the event, up to your sum insured or any other policy limits and benefits that may apply.  The cost of implementing any intervention or improvements to manage future risk is not covered under your policy.  However, implementing improvements will improve insurance availability. 
  • Category Three area – there is no impact to your claim and it can progress to be cash settled for the physical damage to your property from the event, up to the sum insured or any other benefits and policy limits that may apply.  You may wish to defer undertaking repair work on your property until you fully understand what policy and funding support may be available to you, including any council compensation should you choose to move to another location.   The details of what will happen to your claim in the event of any property buyout are still being worked through.

Entitlements under the EQC Act remain the same and we will continue managing these alongside your other claim(s).

Further Information and Assistance

This is a difficult time for many people. If you, your family/whanau or someone else you know needs help, support is available. Some of these services are listed below, you can also contact your GP and book in to see a Health Improvement Practitioner – a registered mental health professional.

  • Wellbeing  Support to find a service close to you or call / text Need to Talk 1737 any time to talk with a trained counsellor.

  • The Depression Helpline – Call 0800 111 757 or text 4202 to talk to a trained counsellor 

  • Youthline – Call 0800 376 633, text 234, email, or go to for an online chat.

  • Healthline – Call 0800 611 116 for health advice and information.