Christchurch Meeting on Insurance Cash Settlements

The transitional Cathedral will once again be the place for people with questions about earthquake insurance claims.

Tonight (Monday 25 May) will see local lawyers Dr Duncan Webb (Lane Neave) and Peter Woods (Anthony Harper) speak to an audience about the things to be aware of when negotiating a cash settlement with their insurer.

Meeting organiser Melanie Tobeck-Bourke says the reason for this public meeting is that more insurers are moving towards cash settling with their clients and this can be difficult for people to navigate, especially when they are tired after more than 4 years of stress and struggle.

“Many insurers have recently changed, or are indicating a change, in their strategy and are seeking to cash settle insurance claims. Most policies do have a clause which states that the insurer is entitled to pay the cash equivalent of the cost of the repairs or rebuild, but there are things people need to know so they are making an informed decision,” she says.

One of the issues that will be addressed is the risk of potentially accepting a cash settlement that is lower than what is needed to complete a repair or rebuild and this then sets people up for a number of things they themselves will need to take ownership of. Another is the amount of risk that can be transferred to the homeowner without them being fully aware of that happening.

“For example, we want to help people to understand the difference between a cash settlement and a full and final cash settlement; there is an important difference. Full and final is an out of contract settlement and people need to think hard if this is right for them and why,” says Tobeck-Bourke.

Peter Woods will update the attendees on the progress of the EQC group action, as well as talking about the EQC cash settlement models, which are also in the news at the moment. Duncan Webb will address the issue of cash settlements in general terms and there will be plenty of time for questions.

Melanie says at this stage there are indications that around 400 will attend however with optional registration it will be hard to know final numbers until the night.

“We also plan to run other evenings over the year so people can understand more about the risks of selling and buying “as is where is”, understand the current precedents for damages, enduring obligations with cross lease and other similar issues,” she says.

Note:  MBIE are in the process of completing a booklet on cash settlements and looking at ways to help people navigate these issues.

ENDS

© Scoop Media