Argosy has announced that its insurance claims have already risen to over $60 million for damages caused by the 2016 Kaikoura earthquake.
The claims, which were updated for the firm’s half-year result, were for material damage, reinstatement works, and business interruption. Those for material damage and reinstatement works until July 31, 2019 reached $45.3 million, while those for business interruption reached $15 million.
The firm confirmed that it had received progress payments of $23.4 million, after a $4.9 million deductible, for its interim claims – with $10.8 million allocated for reinstatement works, $11 million for loss of rents, and $1.6 million for expense recoveries.
Argosy’s claims for material damage were mostly for the 14-level NZ Post building at 7 Waterloo Quay in central Wellington.
"As with many significant insurance claims for earthquake damage, there is debate with insurers over the extent of damage, the scope of repair works, the repair methodology and the extent of insurance cover,” Peter Mence, chief executive of Argosy, told Stuff.co.nz.
To back their claims, Mence explained that they had commissioned a comprehensive damage survey of the building, detailed damage assessment reports, and reinstatement scopes and a reinstatement cost estimate – all submitted to insurers.
Argosy is now addressing feedback from their insurers’ consultants.
