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ICNZ urges pre-purchase due diligence & prudent use of govt's ex-gratia payment

15 Aug 2019

The Insurance Council of New Zealand is urging property buyers in Canterbury to do thorough due diligence before buying a property. It’s also urging current owners to put any payments received from the government towards properly fixing their homes, following the Government’s announcement today.

"The fact the Government is making an ex-gratia payment to repair on-sold properties should not be seen as a green light to buy houses without due care," said Insurance Council Chief Executive, Tim Grafton. "Insurers will always expect properties to be properly repaired before taking on the risks of insuring them."

"We would also expect that all funds transferred to homeowners are applied to fixing the property up, so they can be fully insured," said Grafton.