Does your insurance cover natural disasters?

As we all know, the recent flooding in Auckland has affected many communities and our thoughts are with those who have been affected. Despite the challenges, I am grateful that East Auckland has remained relatively unaffected and continues to be a solid real estate market. If you have any questions or concerns, please don't hesitate to reach out - I am always available to support you and your real estate needs. It's also a good time to think about insurance and whether you have the right protection - as discussed below.

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What is an Act of God?

An act of God is an act of nature that couldn't have been foreseen or avoided. It describes an event where no blame can be assigned to a person, it couldn't have realistically been prevented or it was brought about as a direct result of natural causes eg floods, lightning storms, hail, tornadoes or earthquakes.

Nowadays, insurance companies prefer not to rely on a term so broad as Act of God. Instead, policies have a list of specific exclusions that should make clear what's insured and what's not. If something happens to you that's not excluded, and your claim meets all other policy terms and conditions, the insurer will pay out.

The best way to ensure you're covered for so-called Acts of God is to check your policy carefully before you buy or give your provider a call and ask them to take you through any exclusions that apply, or get in touch with Jiji Couch from Vega Lend here.