Media Release: Councils committed to working with insurers as changes signalled for Westport
Resilient Westport
Media Release
19 December 2025
West Coast Regional Council and Buller District Council are reassuring home and landowners in the Westport area that conversations with insurers will continue as changes are signalled.
West Coast Regional Council Chair Colin Smith says the structural flood protection project scheme being advanced by West Coast Regional Council will bring a significant amount of protection to the town of Westport.
This follows a letter sent to Buller Mayor Chris Russell last week indicating that AA Insurance will temporarily stop offering new business, home and landlord insurance policies for properties in the 7825 postcode due to flood-risk exposure.
Regional Chair Colin Smith says: “The flood protection scheme will provide protection for a 1 in 100-year flood event – i.e. a severe event with only a 1% probability of happening in any given year. It is designed for climate change under RCP6.0.
“It is a challenging project that we want to get right – for the people of Westport and surrounds. It’s a complex job, with a huge amount of planning, thinking, investigating, testing assumptions and talking to our stakeholders required before we can put a spade in the ground.
“Once complete, the scheme will significantly reduce the risk to the town from flooding from the Buller River and should result in reduced insurance premiums and more attractive insurability of properties by insurance companies.
“We have already completed a stopbank at McKenna’s, which, along with the Cats Creek bund, with the final 10 metres soon to be completed, will protect 20-30 households that previously flooded in nearby Eastons Road and Mill, Domett and Colvin streets in Westport.
“The Avery’s stopbank, which is being consented will provide further protection to 40 to 50 properties in the Orowaiti Road area, which are at risk of overflow from the estuary. We have four stopbanks, at least, scheduled to begin construction next year. This includes Avery’s, Floating Lagoon, Carters Beach and Upper Buller,” says Mr Smith.
Buller District Mayor Chris Russell acknowledges there may be concern in the community.
“It is important to note that most people won’t be directly affected by this.
“It is temporary and applies only to new home, business and landlord insurance policies. Existing policy holders and those looking to sell are still protected. Whilst not ideal, this does not mark any sort of insurance retreat from Westport,” says Mr Russell.
“Both councils, will continue to work closely with the insurance industry, starting with the Insurance Council, to provide any information they need about Westport and surrounds,” says Mr Smith.
Mr Smith says: “We intend to update insurers directly as we complete different stages of the flood protection scheme and hope that by providing better information on progress, they will respond accordingly. We would also like to see that attract a wider array of insurers to the Westport community.
“We understand this can be viewed as a setback, but we are confident the work that was put in in 2025 will really pay dividends in 2026 and beyond. We can then restore confidence to the insurance industry and the wider community that the flood protection scheme is going to be delivered and will improve Westport’s resilience in the future,” says Mr Smith.
-ENDS-
For further information please contact:
Resilient Westport Communications team
The AA Insurance decision summarised:
According to the AA Insurance letter, the decision was made with careful consideration and reflects its assessment of flood-risk exposure in the impacted area, based on independent expert modelling, third-party risk data, and historical claims information.
The change does not affect existing AA insurance customers.
AA Insurance indicated it regularly reviews areas where underwriting holds are in place, and if its exposure drops “sufficiently below its maximum exposure limit in future”, it intends to reopen its books to new customers.
The letter reassures Westport homeowners looking to buy and sell property in the impacted postcode that there is a transfer process in place. Homes already insured by AA Insurance in the 7825 postcode will be able to obtain insurance cover, ensuring continuity of protection (subject to standard underwriting guidelines).
The 7825 postcode includes Westport, Carters Beach and Cape Foulwind.