Insurance comes at a huge cost to Maori, iwi and hapu

Flood prone marae face big insurance premiums.

The floods around the country this week and the damage they are causing marae, homes, properties and businesses are a timely reminder about the importance of protection and the role insurance should play.

It's a familiar scene for us in the Whangaehu Valley and Whanganui city. We built a concrete wall round Whangaehu marae to stop flood damage but ,in other tribal areas, a lot more protection is required.

We know insurance comes at a huge cost for Maori, iwi and hapu who have to insure their home contents, their homes and businesses and also their marae. The cost of full insurance for marae can be unaffordable for many hapu and iwi. Some marae are paying at least $12,000 annually in insurance but others pay much more, depending on the risks, such as flooding.

For us at Whangaehu, the cost of insurance is still enormous because of the flood risk, despite the protections we have put in place. Even if your marae is built mainly from concrete, which should reduce the risk of damage by fire, there is still little relief in premiums. Our marae are the central hub for whanau and hapu activity - so restoring and protecting the marae is a high priority, but it is one that is financially challenging for many of us.

In 2009, Te Puni Kokiri produced a report, Te Ora o Te Marae i 2009 - The Status of Marae in 2009 about the health and well-being of over 500 marae across the country. The research revealed that 70 per cent of marae had a building that was more than 50 years old and 66 per cent of marae reported that one or more of their buildings required a major upgrade. Marae building restoration and improvements are hugely important, with 80 per cent of marae buildings to be restored or renovated. We now also know funding is an on-going issue for many marae, with only 51 per cent reporting that they had an annual income sufficient to cover normal operating costs.

Given this financial position, it is obvious some marae struggle to pay for adequate insurance. Some 66 per cent of marae have replacement cover for buildings, but only 41 per cent have cover for their taonga. Te Puni Kokiri is currently working with insurance companies to bring down the cost of insurance for our marae.

The 2010 earthquake in Christchurch and the severe damage caused to homes, businesses and land left families vulnerable with much uncertainty created by delays in the processing of insurance claims.

Three years after the earthquake, hundreds of claims remain unresolved, preventing families from moving on with their lives. Families in Christchurch are rightly questioning these delays.

Some figures show around 5000 severely damaged properties in Canterbury are still waiting to settle. Some owners have received an offer from the insurance company but are undecided whether to accept it, often because there will be no full replacement, even though this was the original agreement. In other cases, claims are delayed because the goal posts seem to be shifting with insurance companies requiring additional new information before they will complete the claim.

We know the damage caused in the Christchurch earthquake is possibly unprecedented in New Zealand, and there have been complexities in dealing with the claims, which have run into millions. But the fact remains that many are still living in temporary accommodation, without bathroom facilities or running water, while they wait. Many families still rely on the goodwill of the community while they wait. For others that could be another two years before their claim is resolved.

I am sure there have been many lessons learned from the crisis in Christchurch. Our expectation as clients of insurance companies is timely responses to our claims.