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Home / New Zealand

Quake claim bids get rejection slip

By Michelle Coursey
31 Mar, 2007 05:00 PM2 mins to read

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KEY POINTS:

More than one in five claims made following the Auckland earthquake - which Wellingtonians have dubbed the "latte spill" - have been turned down by the Earthquake Commission. Aucklanders have been quick to report damage to their homes and property since the three earthquakes shook the region on February 21, the strongest measuring 4.5 on the richter scale.

However But 136 of the 673 claims so far have been declined because the damage wasn't caused by those particular earthquakes, or an earthquake at all.

A further 164 have been resolved and were not included in the number of claims lodged as of by Friday.

"The extent of the response from people living in Auckland might indicate they are not used to earthquake activity," said Earthquake Commission QC claims manager Keith Long.

He said people were not necessarily being fraudulent when trying to claim for cracks in walls or foundations, but may have noticed damage in the wake of the earthquake and thought it was caused by that event.

All claims are being investigated by insurance adjusters, who decide whether the damage was likely to have been a result of the quakes.

"For instance, if a crack in the wall is filled with dust, it probably wasn't caused by the recent event," Long explained.

The impact of the earthquake on Auckland homes and property has surprised the authority. "There has certainly been more real damage, largely cosmetic damage," Long said.

Another 523 claims were still being looked into.

Long said the total cost of accepted claims was expected to be just under $3 million.

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