Flood hits many without insurance

Bay of Plenty people are being advised to take out insurance after it emerged that an estimated one in five of last week's flood victims had no cover.

Insurance Council chief executive Chris Ryan said about 20 per cent of Tauranga residents did not have insurance.

"There are so many of these people, you see them after every flood," Mr Ryan said.

"People don't believe these things happen and they are happening quite regularly.

"It is a tragedy when you see people who haven't got insurance. I really feel for them."

So far 2500 claims have been lodged with insurance companies and 526 with the Earthquake Commission.

In other previously flood-struck areas - Manawatu and Whakatane - the situation was worse, with 40 per cent failing to guard against the unexpected.

Mr Ryan advised those who had been affected by flooding and did not have insurance to contact local councils and welfare agencies, to see what could be done.

New Zealand Bankers' Association chief executive Alan Yates said if someone had a mortgage with a bank and lost their house while uninsured, the debt with the bank would still stand.

Banks would assess each case depending on the credit history of the individual.

Possible outcomes could be spreading the mortgage over a longer term to reduce payments or lending more money to rebuild the house.

Meanwhile, the first of 16 houses was demolished yesterday morning at Landscape Rd, Otumoetai.

David and Corrina Greaves, standing by as their home was destroyed, said they were thankful for the few treasures the Urban Search and Rescue team managed to recover, among them photos, text books and "knick-knacks" handed down from previous generations.

"Any little thing was a bonus," Mrs Greaves said.

Three landslides swamped the five-year-old house and pushed it against nearby pensioner flats in last week's torrential rain.

- NZPA