Insurance Council saves insurers millions
"Owners should pay for any top-up beyond 34% if required. Cost of running a viable business..."Featured comment
The Insurance Council has won a High Court ruling which will save insurers millions of dollars in the Christchurch rebuild.
The High Court has ruled that Christchurch City Council’s new earthquake strengthening rules to 67% of new building standard are illegal.
The Building Act 2004 requires just 34%.
The Insurance Council successfully argue 67% would cost insurers several hundred million dollars.
Insurance Council lawyers told the court 67% would not only incur more costs but would hold up the rebuild because there would be disputes about the extent of insurer liability if property owners were required to repair to the higher level.
A detailed report is available in NBR Print property section tomorrow.