New Zealand’s insurance ombudsman has warned consumers to be honest when claiming for flood damage.

The Insurance & Financial Services Ombudsman Scheme recently rejected a complaint from a policyholder who claimed for 43 items including furniture that was damaged and then thrown away after the 2023 Auckland floods.

Her insurer found some of the contents were in a nearby storage facility, and when questioned, the woman reduced her claim to 10 items.

The unnamed insurer concluded false statements had been made. It declined the claim and cancelled the policy.  

The policyholder complained to the ombudsman, saying family members had helped move and dispose of items, and she had not visited the storage unit. 

But IFSO ruled it was “deliberately reckless” for her to say the items had been thrown out and to seek a payout without taking reasonable steps to verify this.

Ombudsman Karen Stevens says as flooding becomes more frequent, many New Zealanders are making insurance claims.

She says it is important to know that providing false information can result in the entire claim being declined and lead to trouble obtaining insurance in future.