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The Insurance Council of New Zealand (ICNZ) is reassuring homeowners that they should not be unduly concerned about insurance claims being declined for homes built with steel mesh sourced from buildings product company Steel and Tube.
On October 24, Steel and Tube was fined nearly $1.9 million for making false claims about its steel mesh products that were used in the Christchurch earthquake rebuild. A day after the news broke, claimant advocacy group EQC Fix spokesperson Mel Bourke called on the insurance industry to be upfront on its approach towards the steel mesh issue.
Now, ICNZ, in an article by voxy.co.nz, has noted that insurers insure homes in New Zealand starting from those built as far back as the 19th century through to the most modern homes that fully meet the 2018 building code requirements
“Even if homes have been built using steel mesh that does not meet today’s standard it does not mean the construction is unsafe,” ICNZ chief executive Tim Grafton explained. “It may even be of a standard that exceeds that in many homes that were constructed before the standard was raised.
“If insurers have agreed to insure a house, then in the event of an earthquake the steel mesh standard used would not lead to declinature.
“If non-compliant mesh had contributed to the damage incurred, insurers could consider pursuing the at-fault party for recoveries,” he added.
The council also advised Kiwis, who are currently building a property and may have concerns about the mesh being used, to speak to their insurer
