Delicate Balance Required: Recording Natural Hazards on LIMs
Delicate Balance Required: Recording Natural Hazards on LIMs
Thursday 6 August, 2026
A recent article in the New Zealand Herald highlighted a risk that homeowners should be aware of regarding insurance where a local council has identified their property to be at risk from a natural hazard. If their property is damaged by natural hazards listed on their property title or Land Information Memorandum (LIM), their insurance claims could be denied. Therefore, it is crucial for territorial authorities (including in their role as a building consent authority) to understand their obligations when identifying natural hazards on LIMs.
Council Natural Hazard Toolkit
Territorial authorities have a range of tools available to them when identifying natural hazard risks. This includes section 72 notices (registered when granting a building consent), district plans and LIMs. Last year’s amendments to Part 6A of the Local Government Official Information and Meetings Act 1987 oblige territorial authorities to include more information about natural hazards on LIMs than previously required, including any information known to them about impacts of climate change that exacerbate natural hazards on the property.
Risks for Territorial Authorities
If territorial authorities fail to include the required natural hazard information, they risk being sued in negligence for any losses arising from the natural hazard. However, this does not mean that they should adopt a ‘better safe than sorry’ approach and include everything that may give rise to a risk. This approach risks legal challenges from homeowners because of the negative impact it could have on their insurance and property value.
Best Approach
A natural hazard should only be recorded on a LIM where there is specific or adequate evidence or information available. This does not mean that territorial authorities must obtain site-specific reports before noting a natural hazard on a LIM. In relation to building consents, if adequate provision has been made to protect the land from a natural hazard, a building consent can be granted under section 49(1) of the Building Act 2004 with no section 72 notice required (Tauranga City Council v Waddel [2026] NZDC 7006).
In addition to the legislation, caselaw clarifies territorial authorities’ obligations when recording risks of natural hazards. The information recorded on a LIM needs to be clear, fair and balanced (Weir v Kapiti Coast District Council [2013] NZHC 3522). This means that when summarising the information contained in a report about a natural hazard, territorial authorities should indicate any relevant limitations of the reports, for example, if the report is based on a worst-case scenario, that should be included on the LIM. Importantly, a report indicating that a property is at risk from a natural hazard does not need to be a site-specific report, it can be a report for a more general local area.
Key Takeaway
When deciding what information should go on a LIM or whether a building consent warrants a section 72 notice, territorial authorities need to ensure that the information recorded is clear, fair and balanced. This ensures that territorial authorities are fulfilling their obligations by providing information about natural hazards known to them consistent with the standard set out in Weir v Kapiti Coast District Council. As a result, homeowners’ ability to obtain and claim insurance for their properties should not be unduly affected.
If you would like advice on natural hazards recorded on LIMs, contact one of our experts below.
