-
The Ross family - Source: Close Up -
Watch Video
-
Related
Hundreds of Cantabrians could be left without insurance on their homes with at least one major insurer refusing to write new policies for houses in Christchurch.
AMI Insurance has told the Ross and O'Reilly families it will not re-insure their Christchurch properties, despite them having existing policies.
That means many people who committed to house purchases before the quake are now without any cover.
The Rosses want to sell their house of 10 years to the O'Reillys, also AMI customers. But AMI's refusing to cover both families when they move to their new houses next week.
"We always had all our contents, boat, cars, and properties, insured with them and all of a sudden when things get a bit tough it goes into the too hard basket," Darryn Ross told Close Up.
The Ross family house survived Saturday's quake with only superficial damage.
"There's nothing wrong with the structure, no loss of integrity there at all," Darryn said.
He considers the only integrity in question is that of long-time insurer AMI.
"I just want them to stand behind their word."
AMI would not appear on Close Up, but a representative said from tomorrow it will be offering existing insured customers limited ''fire only'' cover if they are purchasing a new house.
AMI said it may extend the cover - decided on a case by case basis - once it receives a geotechnical report and structural engineering report that is acceptable to the company.
Suzanne Ross said she first spoke to AMI about their planned move when their house policy came up for renewal last month.
"They gave me a price, suggested I pay the premium on this house for 12 months, which I did, and they would transfer that credit balance to the insurance for the new house."
She says now there's been a catastrophe, the company has reneged and won't insure the new house.
AMI has requested an engineer's report and a geological survey of the site from the Rosses.
"I'm looking at the surrounding areas around here, there is minimal damage if any damage," said Suzanne.
The O'Reillys also notified AMI of their pending change in circumstances and had been given a quote to cover the new house.
But they too are now being refused cover.
"I rang them and they said they were not writing any policies, there was nothing they could do," said Mark O'Reilly.
Without insurance, the couple says their bank is unlikely to lend them finance.
"My message for the insurance industry, particularly AMI, is to get together and find a solution so that us and hundreds of other people can settle on their properties and sleep easy at night knowing we are insured," said Mark.
Chris Ryan from the Insurance Council said he accepted there was a problem but that it had to be put into context.
"What tends to happen in an event like this is that the insurance companies get a lot of people ringing them asking them to insure their properties, which weren't insured prior to the event.
"They insure their properties and the next day they [the policy owners] say that a subsequent earthquake has damaged them and they claim for $200,000. This move is to avoid that happening."
He said it was normal practice for insurance companies to stop handing out cover after such an event, and that AMI wasn't the only insurer to refuse insurance.
Ryan said he was optimistic the issue could be resolved between insurance companies and banks, and customers.
"It's going to take everybody's goodwill."
Ryan said engineers are available to go and look at properties to make sure the geotechnical checks are made and the contractual small print for the insurer is completed.
