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The owner of the house appeals to the Appeals Court to pay compensation for the earthquake twice
A homeowner in Christchurch brought IAG to the Court of Appeal, arguing that the insurer should compensate twice for the property damage from two earthquakes.
According to a report by RNZ, the Graeme Moore property is located on Scarborough Hill, above Sumner. Property was badly damaged by two earthquakes – the first in February 2011 and the second in June of the same year.
IAG policy provides for a maximum replacement cost of $ 2.5 million in addition to GST. Moore, represented by his attorney Neil Campbell, argued that earthquakes should be treated as separate events. With each earthquake causing damage in excess of $ 2 million, Moore said he should receive two installments.
The Supreme Court decision rejected Moore’s case last year, which prompted him to refer him to the Court of Appeal. The report said the main point of contention was whether a policy clause limited IAG’s liability.
Meanwhile, Christine Mission, IAG lawyer, said the two earthquakes stemmed from the September 2010 earthquake. This made the earthquakes – even if months apart – were part of a single event, which means the insurance company only needs to pay one return.
The appeals court kept its decision, and it took time to review the arguments and evidence from both sides.
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