A major insurer that put a halt to new home insurance policies in Westport has also stopped issuing them in a second town, in North Canterbury.
AA Insurance says its decision to no longer issue policies in Woodend is due to reaching its maximum exposure to seismic risk - not a climate change-related hazard.
But a local real estate agent who discovered the change says Woodend is at lower risk from earthquake damage than many of the surrounding areas, and the decision is "baffling".
The company confirmed to RNZ that it was not currently offering new home insurance policies in the township, which is about 25 kilometres north of Christchurch.
It stopped offering new policies in two other Canterbury postcodes for the same reason last Septe
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