I have said it before and I'll say it again. We can argue for hours, we can have online debates, we can write letters to the editor about whether extreme weather events are the result of anthropomorphic activity or whether we're just in the middle of a natural cycle that's occurred for millennia, but ultimately, what we think about climate change doesn't really matter. It's what banks and insurers and councils and the Government thinks that matters. And when they decide climate change is making some homes uninsurable, there's no arguing about it. Insurance companies just will not insure you, which means you won't be able to get a mortgage, which means you won't be able to buy a home in certain places unless you can buy it on your EFTPOS card, like Westport. 

There's a story on Radio New Zealand's website today. A major insurance company has temporarily stopped offering new home insurance policies in Westport because of the fact that the town floods and floods again. AA Insurance, which has approximately half a million New Zealand customers, wrote to Buller District Mayor Chris Russell at the end of 2023 to tell him AA would halt new business home and landlord insurance policies for properties in the 7825 postcode, which covers Westport, Carters Beach and Cape Foulwind. The company said existing policies would stay in place and it had put a transfer policy in place for anyone looking to buy or sell a home that was currently insured with AA. 

Tower Insurance is another one. People who own properties in locations where Tower deems the risk is too great are now being denied insurance cover outright. Beware signing up to a sale and purchase agreement before you can be sure you have insurance. A couple of legal firms are saying would-be buyers have found when they apply for a mortgage that they've signed up for a property on an insurer's red-lined list. Because they can't get insurance, they can't get the mortgage. But with no insurance condition in their sale and purchase agreement, they still have a contractual obligation to settle on the purchase. 

Back to Westport. The West Coast Regional Council Chief Executive said the first stages of the Resilient Westport project involved building 17 kilometres of stopbanks. Most of that work's in the planning and design stages, but two sections have been built already and that will be protecting around 30 houses that hadn't had that protection before. And in the next few months, they'll be progressing more of the flood bank, which will result in more houses being protected. And the council plans to show that to insurers who'll be visiting the town at the end of next month as different stages of the flood protection scheme are completed. 

So AA has said to Westport that if its flood exposure drops below the maximum exposure limit in the future, if they believe the flood banks will do the job of protecting the homes, then they'll reopen books to new customers. But they're not the first insurer to stop insuring where they deem the risk is too great, and they certainly won't be the last.  

So as I say, we can argue all we like about climate change and who's responsible and whether anyone should be held responsible at all. It really doesn't matter because policies are being drafted, policies are being enacted that take climate change into account. And whatever we believe, we will be denied insurance, paying the increased premiums, reshaping our towns and communities as a result of what the banks, the insurers and the council believe.