AA Insurance Halts New Policies in Flood-Prone Westport

AA Insurance has temporarily stopped offering new home, business, and landlord insurance policies for properties in the 7825 postcode, covering Westport, Carters Beach, and Cape Foulwind. The company notified Buller District Mayor Chris Russell in late 2025, stating the pause is a responsible step to manage flood exposure and protect existing customers. While current policies remain in place and a transfer policy exists for property sales, the company intends to reopen its books only if flood exposure decreases.

This move follows a history of severe flooding, including a 2021 event that left over 100 homes uninhabitable. Residents report that other major insurers are also rejecting new customers, often automatically via postcode. In response, some homeowners are utilizing insurance brokers or turning to specialist rural insurer FMG, which continues to offer coverage on a case-by-case basis.

Local authorities are implementing the 'Resilient Westport' project, which involves constructing 17km of stopbanks and enhancing flood forecasting. Buller District Council has also endorsed a plan for gradual relocation to higher ground. Meanwhile, Climate Change Minister Simon Watts announced a national adaptation framework to address risk reduction and cost-sharing, though specific funding for local councils remains unclear. Experts suggest this insurance retreat may pressure the government into building more defenses rather than pursuing managed relocation.