New Zealand brokers have called for a register of properties known to be affected by or at risk from natural hazards.

The proposed register would involve land titles issued with section 72 notices under the Building Act.

Under the act, when councils give building consent, they can place a section 72 notice on a property title if they consider the land at risk of flood, erosion, landslip, coastal inundation or other hazards.

The notice is intended to warn future buyers, insurers and lenders.

“If a property has a section 72 notice … the Natural Hazards Commission can limit or decline claims for damage caused by that hazard,” Insurance Brokers Association of New Zealand CEO Katherine Wilson said.

“There can also be a flow-on impact for the homeowner’s private insurance. As private insurers usually top up cover above the NHC cap, many private insurance policies will only pay out once the NHC accepts its portion of the claim, potentially leaving homeowners uninsured for the specified natural hazard risk.”

Ms Wilson says it is not unusual for homeowners to discover a section 72 notice only when they prepare to sell their property or make an insurance claim.

“IBANZ is advocating for government to create a centralised, freely available register of properties with section 72 notices to increase transparency and improve access to information,” she said.

“We also believe there is a need for a public education campaign to support greater awareness and understanding.”