More earthquakes have struck Christchurch, New Zealand, and catastrophe-risk modeler EQECAT says the damage could cause an additional $3 billion to $5 billion in insured losses.
Quakes with magnitudes of 5.2 and 6.0 shook the area of Christchurch during the afternoon of June 13. The region has been victimized by three strong earthquakes within the last year.
An earthquake in February tacked $8 billion to $12 billion in insured losses on to an estimate of $4 billion to $6 billion in insured losses from a temblor last September, says EQECAT in a report.
Meanwhile, the New Zealand Earthquake Commission (EQC) and the Insurance Council of New Zealand have agreed to ask the country's High Court for a ruling regarding insurance coverage for the June 13 quakes. The EQC has classified a magnitude 6.0 earthquake on June 13 as a new event. However, since the temblors have all affected the Christchurch area, complex insurance-coverage questions have arisen from the “unusual circumstances” generated by multiple earthquakes in almost the same location over a matter of months.
The EQC provides residential coverage of up to NZD$100,000, and NZD$20,000 for contents, and insurers give coverage beyond these limits. The issue at hand is at what point is EQC coverage reinstated.
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