Slips and house damage in Karekare, West Auckland caused by Cyclone Gabrielle. Photo: RNZ / Finn Blackwell
Severe weather events this year has led to an increasing number of complaints about financial service providers.
"We are beginning to see more weather-related complaints against financial service providers in the wake of the Auckland floods and Cyclone Gabrielle," financial ombudsman, Susan Taylor said, adding that many of the complaints to Financial Services Complaints (FSCL) related to insurance claims.
"These range from delays in insurers assessing claims, complaints that insurance brokers didn't arrange appropriate insurance cover for homes and businesses, and consumers struggling to make loan repayments due to financial hardship."
Taylor said some consumers were being pushed to their financial limits following these weather events, particularly those struggling with rising costs and increasing interest rates.
"We understand this is a stressful time for those who have been impacted."
She said there were a number of other organisations available to provide free services and advice, including the Insurance and Financial Services Ombudsman (IFSO), the Banking Ombudsman Scheme (BOS) and the Financial Dispute Resolution Service (FDRS).
"I would also urge consumers to speak to their lenders as soon as they begin to struggle to make loan repayments," Taylor said.
"As extreme weather events become increasingly common in Aotearoa, more consumers will find themselves unable to rebuild their homes as a result of their sum insured value being set too low.
"With building costs continuing to rise, and inflation remaining steady, it's important that consumers regularly review their sum insured."
