Photo: RNZ / Anan Zaki
A major insurance company has temporarily stopped offering new home insurance policies in Westport because of the town's flood risk.
A climate change policy expert says AA Insurance's decision will be the first of many, and is urging insurers to be transparent when they withdraw from an area.
Another researcher specialising in insurance retreat says the company is sending a clear message that it wants investment in flood defences - but warned that could result in a doubling down in Westport, rather than a move out of harm's way.
AA Insurance, which has approximately half a million New Zealand customers, wrote to Buller District Mayor Chris Russell at the very end of 2025 to tell him the company would halt new business, home and landlord insurance policies for properties in the 7825 postcode, which covers Westport, Carters Beach and Cape Foulwind.
The company said existing policies would stay in place, and it had put a transfer policy in place for anyone looking to buy or sell a house that was currently insured with AA Insurance.
In a statement summarising the letter, published on Buller District Council's website, Chris Russell said most people would not be directly affected by the company's decision.
"Whilst not ideal, this does not mark any sort of insurance retreat from Westport."
Westport has been repeatedly flooded over time, escalating in recent years. A 2021 flood left more than 100 homes uninhabitable.
Photo: RNZ / Niva Chittock
Last March, Buller District Council endorsed a plan that could eventually see the town gradually relo
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