KEY POINTS:
It cost $1.4 million only six weeks ago, the new owners have never lived in it and now the Clovelly Rd home is uninhabitable after the Bucklands Beach landslip. The house, at number 118, is one of six properties evacuated since the slip started moving last weekend.
The sale was settled at the end of July, but Manukau City Council and the Earthquake Commission have declared it uninhabitable.
The neighbouring property, which includes a unit lived in by former Manukau mayor Sir Barry Curtis, has sustained substantial damage.
The house was bought by a couple who live in Beijing, China. A source confirmed the home was insured and the owners had been informed.
The property was sold by Trinity Real Estate, which has since gone into liquidation. Agent Tony Xu, who sold the 1970s-built home, would not comment on the situation but it is understood the owners did not check a LIM report on the property beforehand.
The Herald on Sunday viewed building consents and information on the property kept by Manukau City Council, which showed there was a Land Information Register note for the property stating a geotechnical assessment would be necessary if there was to be any development "because of the steep nature of this site".
But this warning applies to most clifftop or steep coastal properties.
Head of the Insurance Council, Chris Ryan, emphasised the importance of checking all records before buying a property to be aware of potential risks
He could not say how much had been spent so far but estimated the cost of the storm at the end of July alone to be about $50 million, so the total for winter would be higher.
Many claims are still to come and landslips have so far cost the Earthquake Commission $16.4 million this year. That is less than the average for the past five years of $25.54 million. However, the cost of landslips in Auckland was more than $1 million higher than the average.
Lance Dixon, the Earthquake Commission's insurance manager, was unsure why national figures were lower this year than last year.
He said the 2004 and 2005 winters included a large slip in Tauranga/Matata, which cost about $30 million and pushed up the average price.
Ryan said insurance premiums would rise and it was accepted within the insurance sector that landslides around Auckland were increasing, and certain houses or areas may be targeted for increases more than others.
Head of insurance company NZI, Karl Armstrong, said it would definitely raise its premiums in the coming months "to more closely reflect the level of risk in New Zealand".
Armstrong said three factors were driving up the cost of insurance in New Zealand, the first of which was more frequent and severe large weather events.
