Insurers are not expecting a big financial hit from the 5.7 earthquake in Christchurch.

Tim Grafton, chief executive of the Insurance Council of New Zealand, said he had been in touch with insurers following the quake which shook the city at 1.13pm on Sunday.

“Essentially, it looks at the moment like there is possibly some liquefaction in New Brighton, cliff fall in Sumner, and that claims losses are likely to be EQC losses under the $100,000 claims cap.”

Little property damage has so far been reported, with the exception of goods falling from shelves in shops.

Grafton said some commercial claims were expected, which were covered by private insurance.

IAG spokeswoman Renee Walker said they were yet to receive any calls with claims or reports of damage

“We’re expecting that we might, but obviously EQC are first to respond so we’re just making sure we’ve got resources available so if we need to make any emergency repairs for any of our customers or if we need to get out and assess any repairs or rebuilds that are in progress as well.”

“We haven’t had any calls yet but we expect we might and we will be ready to respond to them when we do.”

Walker said IAG had sent staff home in Christchurch, and had diverted calls from policyholders to its Auckland staff.

“It’s been quite a shock because it was so unexpected,” Walker said. “It felt big, the biggest we have felt since June 2011.”

IAG had called around its staff in Christchurch to check they and their homes are okay, and closed its offices temporarily in the city. It has three, with its main one in Show Place.

EQC was preparing to put out a statement, said spokesman John King. He said it would take time for the full picture of damage and claims to emerge. People having three months to lodge, he said.

Source: Stuff – http://www.stuff.co.nz/business/76870416/christchurch-earthquake-insurers-not-expecting-big-claims