Homeowners in the Kaikoura area have allegedly been underpaid by insurers for claims stemming from the 2016 earthquake, according to a reconstruction official.
Steve Vaughan, Kaikoura District Council’s rebuild navigator, said that his team is seeking legal advice on possible remedies for people who have received inadequate insurance payouts, the Kaikoura Star reported.
“We are still having a few issues with insurance companies where they have convinced the policyholder of the property to sign paperwork to release funds for repair work to be done on the properties,” Vaughan said.
“But when we have gone back and re-scoped the properties and found more earthquake damage, the insurance companies are informing us that the claim has been settled and they will not be giving any more assistance to the policyholder.”
According to Vaughan, his team is looking though legal cases related to the Christchurch earthquake that could be of assistance to Kaikoura homeowners affected by insurance companies’ and repair companies’ allegedly unprofessional behaviour.
Vaughan was tapped to become rebuild navigator to help homeowners experiencing trouble with insurance and rebuilding processes by looking through previous damage scopes by EQC. In some cases, the re-scoping has led to the discovery of much more extensive damage than initially assessed, which meant more expensive repair work.
He added that some insurers have acknowledged the results of the re-scoping, and are now working together to resolve the cases.
The Kaikoura rebuild team has brought in contractors from other parts of New Zealand to help speed up the reconstruction work. Meanwhile, Vaughan said that his office is still receiving requests for assistance from homeowners whose properties were damaged in the earthquake.
