Screwed in the arse by insurance companies (house)

[dangerous]

Ohhh yeah... sit down for a good rant, Ya bout to get a ear full.
Thought I was doing the right thing for the family, (2 under 3's 2 cats 2 dogs and the missus) Sold the chch house to a needing couple they love it plan was to move to the country the boys would learn to ride rather than how to bust up bus shelters. Lumley our insurance company said they will insure us providing the geo tec report was a good one, it was as expected, so money was loaned for the land, the bank will give the rest when the house is insured.

Lumley now say NA... sorry so we are now left with land we can not do any thing with and no shelter for the family, renting in chch is unavailble and house prices are through the roof and thats if you can get one. Im fucked, what to do?

I know full well the land we have is some of the best availble, sure there was a recent quake centered out there but nothing since and the likely hood of it happening again is very rear.
No damage to the land at all accured and with a new house to be built on it with the latest quake strengthing built in it is one of the best suituations to be in should it happen... yet na, no way hose a, no insurance, not happening... farking cunts all I want is the best for my family I can achieve, so for the mean time its a 30yr old caravan for us all in a paddock... its not bloody easy, so what dosnt kill us will make us stronger... meh crock a shit.

[mashman]

How was the agreement made? There must be a record, either document based or a recorded conversation?

Get in touch with Fair Go... the dirty bastards shouldn't be allowed to get away with that shit. All the best to you and yer family man.

[tigertim20]

So they are refusing insurance because there was a recent quake centred in that area?
Harsh reality, if I was the insurer, Id be steering as far away as possible from anything that was potentially a higher than average chance of me having to pay out. It sucks for sure though, There are many others in a similar position to the one you are in.

[Madness]

Surely there must be a way. I can't help but think maybe it's all just a little "too hard" for the insurance industry at the moment - not a bad risk, just not enough resources and all to easy to just say "piss off Noddy". Maybe a decent Broker might have some ideas? Good luck fella!

[flyingcrocodile46]

If you didn't already record the details of your conversations with them do so now (assuming that the undertaking they gave you wasn't in writing?).

They made an undertaking (a contract to provide insurance) on which you relied when you purchased the property. Due to their failure to honour their undertaking you have been disadvantaged and have suffered damage (loss of amenity of the property caused by their refusal to provide the promised insurance cover needed to secure the finance to build) this is referred to as consequential loss. They know full well what consequential loss is and how vulnerable respondents are to consequential loss claims (as an insurer they are often a respondent).

You should talk to a good lawyer.

[slofox]

Joe Bennett took the piss on these dudes in a column recently...

http://www.stuff.co.nz/the-press/opi...nsurance-types

I think the relevant bit is this:

Naive citizen: Good. May I take out insurance for the rebuilding, please?

Friendly insurance person: No.

Naive citizen: Why not?

Friendly insurance person: We're not writing any new business.

Naive citizen: Why not?

Friendly insurance person: These are exceptional circumstances.

Naive citizen: But aren't exceptional circumstances the reason for taking out insurance?

Friendly insurance person: Oh, ha, ha, ha, you really are a very naive citizen.

Frankly I am with the OP on this one - Insurers are behaving like total cunts over all this. Like Joe says above - that's what insurance is BLOODY FOR!

+1 for talking to a broker - I do that anyway. But then I am not in Canterbury, eh...

[flyingcrocodile46]

Surely there must be a way. I can't help but think maybe it's all just a little "too hard" for the insurance industry at the moment - not a bad risk, just not enough resources and all to easy to just say "piss off Noddy". Maybe a decent Broker might have some ideas? Good luck fella!

The problem is the lack of underwriters. While local companies can and do carry some of the risk, they rely on underwriters to cover them.

The insurance industry is suffering at present with massive claims which they haven't got ready cash lying around to pay. They have to sell some of their international property investments and can't sell (dump) them on the market all at once (particularly in a cash poor international economy) as to do so would see them get insufficient investment recovery to remain viable (cover ongoing and future risks).

The instability resulting from continued shakes is in some ways helping them out as the urgency to spend claim money on replacement houses is somewhat diminished by the inability of people to get the insurance cover required to satisfy mortgage lenders. Taking some pressure off them to have to front with all the money at once.

At least that is my theory

[Edbear]

The problem is the lack of underwriters. While local companies can and do carry some of the risk, they rely on underwriters to cover them.

The insurance industry is suffering at present with massive claims which they haven't got ready cash lying around to pay. They have to sell some of their international property investments and can't sell (dump) them on the market all at once (particularly in a cash poor international economy) as to do so would see them get insufficient involvement recovery to remain viable (cover ongoing and future risks).

The instability resulting from continued shakes is in some ways helping them out as the urgency to spend claim money on replacement houses is somewhat diminished by the inability of people to get the insurance cover required to satisfy mortgage lenders. Taking some pressure off them to have to front with all the money at once.

At least that is my theory

Pretty much. If you were an insurance company what would you do?

[flyingcrocodile46]

Pretty much. If you were an insurance company what would you do?

Survive.

It's no help to the world moving forward if insurance cover can't be obtained. No one will want to risk their gold by doing anything with it that isn't a certainty.

[AllanB]

Pressure them under the basis you made the purchase based on the conversation you had with them.

Ring around to see if another company will insure you.

NEW policies are unlikely in Canterbury. Period. Understandable in this shitty environment.

A number of the big group home builders have guarantees of home insurance if you build with them.

[Matt_TG]

Estoppel is the term that's relevant here.

In very very broad terms, if you were lead to believe something would occur and it didn't, causing you financial loss you can seek compensation.

Ask your legal advisor to investigate.

[98tls]

Sorry to hear of your plight D,cant help re advice but if theres anything we can help with then sing out eh.All the best to you and family.

[Grumph]

[QUOTE=AllanB;1130158755

A number of the big group home builders have guarantees of home insurance if you build with them.[/QUOTE]

Yeah, but that's merely a change of position and a different dick screwing you....

I have sympathy for D's position but until the "G" word doesn't scare insurance companies the area of his property will be next to impossible to build on. Given the latest quake cluster I'd imagine it's the same now in Prebbleton.
I wonder if it's a possibility to obtain fire and theft insurance for the build...and carry the quake risk yourself. He's right that locals now see no real danger from quakes.

[dangerous]

build insurance is no worries... what the differance is I dont know, its at the end of the job when we move in, having a morgage the bank want to protect there intersets.
So we had a quake or two, life must and has to go on... why wont they let us? surley a priemium from us and others helps with their pay outs?

As a note the law wont allow a insurance company to delet quakes from the policy, if they did then insurance wouldnt be an issue less quakes.

[SS90]

build insurance is no worries... what the differance is I dont know, its at the end of the job when we move in, having a morgage the bank want to protect there intersets.
So we had a quake or two, life must and has to go on... why wont they let us? surley a priemium from us and others helps with their pay outs?

As a note the law wont allow a insurance company to delet quakes from the policy, if they did then insurance wouldnt be an issue less quakes.

I believe that this is the new reality of home ownership in Chch.

Insurance companies cannot be forced to sign new contracts (why would they?), general insurance in ChCh right now (or perhaps ever, I don't know) is unthinkable.

Remember that in the event of another earthquake, then the insurance companies of existing policies will have to fork out... But as we are all too aware, plain and simply, there is not enough money to cover the existing damages, let alone new ones.... It is a simple reality.

Just like when the current government in the UK took over the treasury left a note on the incoming ministers desk saying "there is no money left!"

It is only funny for a second, then reality kicks in.

I sympathise with you plight, however I cannot see how this situation is goung to change.

Insurance is all about calculated risk, and I am pretty sure all the risk analysts in the world would agree that ChCh is just too high a risk.

I wonder what the premiums would need to be based on the risk factor....... Probably about twice the average annual Kiwi wage... Per month......