There are inherent risks living in a volcanic zone, as there are living in an area prone to earthquakes, snow or lightning storms, tornadoes, floods or any of the awesome forces nature has to dish out. Most of the eruptions though, are more disruptive than destructive and the risks are actually very small. There have been 3 volcanic events in New Zealand's history that have caused death - only one of them was from an actual eruption:

• Mt. Tarawera's 1886 eruption killed 150 people.
• White Island's 1914 crater wall collapse killed 11 Sulphur Miners.
  
• Mt. Ruapehu's Crater Lake rim collapsed in 1953 causing a Lahar that wiped out a rail bridge - a train shortly after plummeted into the river killing 151 people.