Hamilton has been identified by scientists as the lowest natural hazard risk major centre in New Zealand as insurance companies begin pulling back from some communities deemed too dangerous to cover.
Earth Sciences principal scientist Graeme Leonard said the wider Hamilton area had long been considered relatively low risk compared to other parts of the country.
"We've said for a long time, perhaps, that the wider Hamilton area is a relatively low-risk area, but it's not no risk," he said.
"All of New Zealand is exposed to some severe weather risk and an earthquake risk."
Revealed: NZ's lowest natural hazard risk city as insurers pull back - Watch on TVNZ+
Hamilton mayor Tim Macindoe welcomed the city's reputation as the country's safest.
"That's a wonderful reputation to have. I'm very pleased to hear that news."
But he cautioned against complacency, noting disasters had struck Hamilton and the Waikato area before and more recently. "Preparation is key," Macindoe said.
The assessment comes as AA Insurance earlier this month announced it would pause new home and business policies in Westport due to high flood risk. New policies had also been paused for three Canterbury postcodes due to seismic risk.
Insurance Council chief executive Kris Faafoi said the decision affected less than 1% of postcodes nationwide, and insurance continued to be "accessible and available".
But he said governments needed to work with councils to identify the riskiest areas and invest in infrastructure or make difficult decisions about the future of those communities.
"If we can do that, the risk gets reduced, we keep communities safer, and that will mean that insurance can continue to be accessible in the long term," Faafoi said.
'Left to their own devices'
Victoria University emeritus professor Jonathan Boston, who recently wrote a book on the subject, warned the retreat of insurers was only the beginning.
He said New Zealanders could eventually be abandoned by their own government.
Boston said the Government's climate change national adaptation plan suggested that in roughly 20 years, people living in high-risk areas would "in effect, be left to their own devices" and would not be eligible for assistance to relocate.
He said that the prospect was morally wrong and argued the role of the Natural Hazard Commission, formerly EQC, should be extended to cover weather-related risk.
"Even in those circumstances where private insurers say the risk is too great, then at that point, in my view, the Government should step in and provide insurance cover at least temporarily - until such time as it's decided whether or not those properties can be protected, and if they can't, whether they should be removed and relocated."
Faafoi pushed back against that proposal, saying any extension of the commission's cover would impact taxpayers and be challenging for the private insurance market.
"Governments need to make sure that they can identify where the riskiest areas are, work with councils to see what they can do in those places and build the infrastructure or make some difficult decisions about what the future of those areas are.
"If we can do that, the risk gets reduced, we keep communities safer, and again, that will mean that insurance can continue to be accessible in the long term."
Climate Change Minister Simon Watts acknowledged the policy work around buyouts and investment frameworks was complex and would take time, but could not provide an exact date for completion.
He said, realistically that it would be after the election.
Labour finance spokesperson Barbara Edmonds said New Zealand's insurance framework had been admired internationally, but the Government needed to outline what funding role it would play for homeowners affected by climate change.
She accused the Government of "dragging their feet" on a climate adaptation framework, saying there had been just one briefing from officials and no progress since.
For Whena Owen's full story, watch the video above
Q+A with Jack Tame is made with the support of New Zealand On Air
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