AFTERSHOCK COULD DELAY END TO WELLINGTON INSURANCE EXCLUSIONS

Most insurers offering property cover in the Wellington and Marlborough regions were scheduled to renew their exclusions today, having stopped accepting new business after an M6.5 quake struck the Cook Strait on July 21. However, a 5.4M aftershock hit the Cook Strait at 1.07am Monday morning local time. By midday on Sunday the likelihood of a M5.0-M5.9 aftershock within the following 24 hours had fallen to 11%, but GeoNet said that this probability would now rise again. IAG New Zealand, which operates the State, AMI and NZI brands, as well as having a bancassurance deal with Bank of New Zealand (BNZ), said that it would be reviewing its underwriting embargo on Monday, and a BNZ spokeswoman told Fairfax she understood that, at the very least, the exclusion zone would be reduced. AA Insurance and Lumley also said that they would be looking again on Monday at whether the exclusion zones would continue. The lack of available insurance is causing hold-ups to home sales, as mortgage financing cannot come through without valid buildings cover in place.