The "cautionary information" in the new wording suggested no increased level of risk, city environment general manager Tony Avery said.
Another insurance company has responded to the issue.
Vero Insurance personal business manager Tony Headland said yesterday "at this stage, we haven't made any changes to our acceptance criteria of risks in Dunedin".
The council's move follows news late last week a significant tract of Dunedin's flat land had been declared at risk of liquefaction, and reports of individuals struggling to insure properties as a result.
On Wednesday, two of New Zealand's biggest property insurers, State and NZI, responded to concerns by confirming the LIM warnings would not affect how they insured the area.
Yesterday, the council held a press conference to explain the latest modification to the wording.
Mr Avery said in a press release the change did not indicate any increase in risk, rather the public's growing awareness, and interest in, the prospect of liquefaction in certain areas and under certain circumstances.
"In Dunedin, there are significant areas of population living on reclaimed land or close to estuaries or rivers - as they have safely done for generations - where it is sensible to draw attention to such a risk, however slight."
On the changed wording, Mr Avery said the council's building control team had always required building foundation construction to take into account such conditions, and the requirement for a site-specific design did not constitute a change.
The council had been receiving queries on the issue, but "the risk hasn't changed one iota, nor has the way we deal with the risk changed".
"I don't see why insurers or banks should be taking a different approach."
Asked if communications between the council's hazards adviser MWH and council staff would improve, so the council was fully aware of any wording changes in future, Mr Avery said "Yes".
Only some people at the council had been aware of the changes when they were made in September.
Chief building control officer Neil McLeod said concrete slab foundations had generally been successful for buildings on the land, and worked well in Christchurch.
The press conference heard land on the flat varied, and some areas closer to hills, in the Forbury Rd area, for instance, were on more solid ground.
Other city councils contacted dealt with risk declarations since the earthquake in a variety of ways.
A Wellington City Council spokeswoman said her council had added a new paragraph to the land structure section of its LIM reports in light of the Canterbury earthquake.
It refers people to the Greater Wellington website, to information on possible liquefaction, slope failure, ground shaking and tsunami areas as a result of an earthquake.
The Waitaki District Council did not list liquefaction risk on its LIM reports.
Regulatory manager Paul Arnold said the council had no information on areas of liquefaction risk in its district, nor was he aware of any studies planned.
"Only official information that we hold can be listed on LIMs," he said.
An Auckland City Council spokeswoman said there had been no changes to LIMs in the city since the Christchurch earthquake.
