Residents of Pākōwhai Rd, Hayden Downer and Maria Hollingshead, are facing difficulties in accessing their insurance payout held by ASB Bank, following the destruction caused by Cyclone Gabrielle. The couple is planning to rebuild various structures on their property and acquire a neighbouring house for renovation.
According to a report from the NZ Herald, their insurance provider, FMG, has assessed the damage and disbursed the necessary funds for the reconstruction projects. However, the release of these funds by ASB Bank has been delayed. A spokesperson for FMG commented on the rarity of such situations and directed any inquiries regarding the funds to the bank.
ASB Bank, while refraining from commenting on this specific case, provided a general explanation of the process for releasing insurance payouts. According to the Property Law Act 2007, insurance payouts for damaged properties with a registered bank interest are initially paid to the bank.
Following Cyclone Gabrielle, New Zealand's five major banks and insurance companies established a new protocol, allowing up to $100,000 to be immediately accessible to customers, with the remaining amount withheld until evidence of planned repair work is presented.
For properties where the bank's lending is secured, it is crucial to ensure that insurance claims are used for necessary repairs to restore the property's value. Customers also have the option to settle their bank loans in full, after which any residual funds are released.
Downer and Hollingshead, who are undertaking extensive rebuilding efforts, including multiple houses and outbuildings, expressed frustration with the situation. The couple, who lost most of their possessions in the cyclone, are relying on the support of friends and family offering labour and expertise, often at reduced rates, due to their limited financial resources.
Despite paying significant insurance premiums and enduring the lengthy process of rebuilding and reclassifying their property, Hollingshead expressed disappointment with the continuous obstacles faced in accessing the insurance money. The couple said they remain determined to continue their rebuilding efforts and hope for a positive outcome.
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