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Speaker 1: Don't expect a handout. That's basically the message to homeowners

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Speaker 1: who are hoping the government will swoop in and buy

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Speaker 1: out houses after the next big cyclone, as they have

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Speaker 1: been doing to this point. Watts is the Climate Minister.

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Speaker 1: He took a paper to Cabinet. I had to read

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Speaker 1: of it at the weekend. They haven't immediately turned the

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Speaker 1: tap off to buyouts, but they're making it pretty clear

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Speaker 1: it won't be long before they do. How long does

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Speaker 1: it say specifically just sometime in the near future. If

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Speaker 1: you're buying a house or you're buying land, you're going

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Speaker 1: to want to check flood zones very carefully. Basically after

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Speaker 1: the Auckland floods, you know which parts of your suburb

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Speaker 1: are prone to flooding. You can see it, you saw it.

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Speaker 1: That's generally where you don't want to buy. You're going

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Speaker 1: to have to manage this risk. We are going to

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Speaker 1: have to manage this risk. Our insurers are going to

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Speaker 1: have to manage this risk and try and mitigate it.

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Speaker 1: The Council and the Government spent two billion on buyouts.

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Speaker 1: This is after the Auckland floods. That may not happen

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Speaker 1: next time. And guess how many homes are sitting in

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Speaker 1: flood prone areas right now in New Zealand, apparently, according

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Speaker 1: to the latest data, hundreds of thousands worth one hundred

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Speaker 1: and eighty billion dollars combined. It means insurance will be

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Speaker 1: more expensive or non existent for some areas and some properties.

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Speaker 1: The government basically wants to take itself out of the

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Speaker 1: risk equation, one because it's cheaper for them, two because

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Speaker 1: buying out flood prone land distorts the market. If you

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Speaker 1: know a buyout is going to happen, you'll be less

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Speaker 1: worried about flooding and pay more than you should for

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Speaker 1: the site. The scientists tell us that damage from cyclones

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Speaker 1: and floodings is only going to get more intense and frequent,

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Speaker 1: and you should basically consider this a warning from the government.

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Speaker 1: They don't want the same thing that's happening to the

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Speaker 1: properties happening to their books. For more from Early Edition

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Speaker 1: with Ryan Bridge, listen live to News Talks it'd be

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Speaker 1: from five am weekdays, or follow the podcast on iHeartRadio.