Owners lose earthquake case

Owners of 12 units at 152 and 160 Salisbury St, Christchurch sued Vero Insurance seeking a declaration from the High Court that by reason of earthquake damage they were entitled to have the buildings rebuilt under their Vero insurance policy.  Vero said the buildings could be repaired to meet the policy standard of”when new”.  The High Court released its judgment in Body Corporate 335089 v Vero Insurance New Zealand Ltd [2020] NZHC 2353 on  10 September 2020  more than a year after court hearing finished.    The evidence for the owners failed to prove more than minimal earthquake damage by cracking and minor floor level changes.  The argument that because the buildings have dropped was not of itself enough to lead to rebuild as relativities with floor levels, ground levels and service slopes could be maintained. So the Court refused to make the declaration sought by the owners.  Costs will follow the event so this will be an expensive loss for the homeowners.