Tower reaches settlement with Christchurch home owners

Matt and Valerie O'Loughlin arrive at the Christchurch High Court. Photo / Geoff Sloan

Tower Insurance has reached a settlement with the O'Loughlins over their earthquake damaged Christchurch house.

The Dallington couple won the right to get their payout recalculated after a landmark court case earlier this month.

The terms are confidential.

Matt and Valerie O'Loughlin took their insurers to court after rejecting offers to repair their cracked and broken house.

In what was seen as a potentially landmark legal case, the retired couple told how their two-storey Gayhurst Rd property in the badly-hit suburb of Dallington was so damaged it couldn't be fixed.

They said Tower was "obligated" to pay for a new home outside the red zone.