In the latest episode of AA Insurance Location, Location, Location NZ, Caroline and Andrew explore Auckland’s East Coast Bays while learning about natural hazard risks and insurance.
New Zealand is a great place to live. But natural hazards are something that property buyers need to keep in mind when looking for their next home, as viewers of AA Insurance Location, Location, Location NZ heard in Episode six.
Hosts Jayne Kiely and Paul Glover were tasked with finding house hunters Caroline and Andrew a dream home on Auckland’s East Coast Bays, an area well known for stunning views and proximity to the sea.
The couple wasn’t familiar with Auckland or the New Zealand property market. Due to its geography and location, New Zealand is prone to natural hazards and extreme weather, which can cause damage to property. When looking at houses, it’s important to thoroughly research the home you’re interested in, the surrounding land and area so you know what you’re buying.
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With dreams of living by the sea, Caroline and Andrew sit down with AA Insurance expert Tom to chat about their home-buying journey.
Tom shares a few useful resources to help them with their due diligence, particularly when it comes to natural hazards and weather.
“You’ve had an exciting week looking at houses. What kind of things have you found?” asks Tom. “These bays, there's an awful lot of them to investigate,” Andrew replies.
“And some beautiful sea views or close to the sea?” Tom asks. “Yes, a couple of the properties were very elevated,” Caroline replies.
“New Zealand’s a beautiful country,” Tom says. “Unfortunately, it’s slightly riskier for natural hazards. All over New Zealand, there’s lots of different weather events and natural hazards”.
Useful resources for house hunters
Tom suggests to Caroline and Andrew that they use local council and government resources to investigate potential natural hazards.
“If you’re by the sea you’ve got [risks of] coastal erosion and landslip. So it's really important when you're looking for property just to make sure that you're doing your due diligence,” says Tom.
“The LIM [Land Information Memorandum] report will show you all the information about the property and the land,” he says.
The LIM provides a summary of information the local council holds about the land, such as natural hazard risks, consents, water services and drainage. Some councils have also made flood data available to the public, which can help you make an informed decision.
Tom recommends that Caroline and Andrew look up the Natural Hazards Commission Toka Tū Ake (NHC) website at naturalhazards.govt.nz. “They have a lot of information on their website,” Tom tells the couple.
“There's also the Natural Hazards Portal [naturalhazardsportal.govt.nz], which will give you area-specific information,” he says.
“And we could input a property address into that portal?” asks Caroline. “Absolutely,” Tom replies. "The portal can tell you if there's been any Natural Hazards Commission Toka Tū Ake settled claims at that property."
Doing due diligence on a house purchase
Between searching for your dream home and making an offer, there are many things to think about when you’re buying a property. Thoroughly researching the home you’re interested in is an important step to help you understand what you’re buying, that includes the house, the surrounding land and the area it’s in.
As well as the LIM and the online flood and natural hazards tools, there are a few other things you may want to look into when doing due diligence. Getting a pre-purchase inspection such as a builder’s report can help you understand how the property is built and what materials are used. A record of title is a legal document that’s specific to the address and tells you about the land and restrictions against the property. A property lawyer can help you review documentation, fill in the paperwork and spot any potential hazards and issues with the property before you commit to it.
Contact your insurer before making an offer
"I think the final thing I'd say would be, once you've found a property you love; you've done all your due diligence, before you put an offer in, make sure you call your insurance company," Tom advises Caroline and Andrew. “Good idea,” Andrew replies.
Natural hazards and weather are important considerations when you’re looking to buy a house. Before you put an offer in, contact your insurance provider to ensure you can get cover to suit your needs and that you understand the cost of insuring the property so you can budget accordingly and buy with confidence.
You can watch Caroline and Andrew’s episode of AA Insurance Location, Location, Location NZ on TVNZ+
New episodes of AA Insurance Location, Location, Location NZ air Sundays 7.30pm on TVNZ 1 and TVNZ+
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