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Settlement agreement valid

In Annex Devleopments Ltd v IAG New Zealand Ltd & anor [2017] NZHC 706 a property owner, Annex, asked the Court to set aside a settlement agreement it entered into in February 2012 for settlement of a commercial building claim on the ground that it and IAG had made a mistake about the extent of the insurance cover.  Annex settled the claim(s) for $9,430,000.  IAG had previously made progress payments for emergency repairs and lost rent of $229,746.35.  Annex said that it ought to have received about $15M to $16M.  IAG insured the building for replacement with a sum insured of $8,706,824.  Annex said that its cover ought to have reinstated on each event and not when each claim was paid as IAG contended.  The Court disagreed and said that cover reinstated only on payment and only to the extent of the payment.  The Court entered summary judgment for IAG.  The claim continues against the insurance broker that placed the cover, Peter Taylor and Associates Ltd.

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Limitation- Time running out on claims

Last year insurers issued statements about dates on which they would rely on a defence under the Limitation Act(s) that require court proceedings to be brought within 6 years on which a homeowner could first sue otherwise the claim is no longer enforceable.  Those dates are fast approaching.  AA, Vero, FMG, MAS, and the IAG brands agreed not to plead a limitation defence for any residential earthquake damage claim where proceedings are filed in Court before 4 September 2017.  Southern Response will not rely on a limitation defence until 4 September 2018.  If an insured does not sue before these dates the claim dies.  This includes claims that are under cap, but may go over cap post limitation expiry.  Insureds ought to prepare to sue now.

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EQC- November 2016 Quake Update

Here is a link to the EQC update about claims from the November 2016 earthquake.  Apparently EQC has received about 38,000 residential claims with 71% for building damage only, 10% for building and contents, 9% contents only and 10% land damage.  EQC has retained management of the land claims.  Insurers manage building and contents claims from the November 2017 quakes only.  Apparently the intention is to settle the majority of claims by the end of 2017.

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