AA Insurance stops new home policies in Woodend over quake fears
AA Insurance has halted offering new home insurance policies in Woodend, a small town in North Canterbury. The company cites high seismic risk as the reason, though local experts question the decision. Existing policyholders in the area will still be able to renew or transfer their cover.
The move follows similar restrictions in Lincoln and Rolleston last September. Both areas saw new policy applications paused due to what AA Insurance called responsible risk management. Now, Woodend has been added to the list, despite no recent increase in natural hazards there.
Amanda Newson, a Woodend real estate agent, described the decision as baffling. She found no evidence of heightened earthquake risk in the area, noting it was lower than in nearby regions. AA Insurance, however, maintains the restrictions are temporary and based on managing exposure to seismic threats.
The company has not informed Waimakariri District Council about the change. Head of underwriting Dee Naidu confirmed to RNZ that the pause was part of a broader risk strategy. Meanwhile, AA Insurance has also halted new home insurance in Westport, though that decision was linked to flood risk rather than earthquakes.
Current Woodend policyholders remain unaffected and can still renew or transfer their insurance. The company's decision applies only to new applications, leaving homeowners in the area with fewer options. For now, the restrictions remain in place as AA Insurance reviews its risk exposure.
