Insurance payouts - like for like or engineer

corkranb, Apr 18, 3:35am
Be interested to know from anyone who has been cashed out instead of getting the insurance to rebuild the house.
My late mothers house built in 2000 has deep piling underneath her slab floor as the home was build on a land fill site. The insurance have now agreed finally that it is a rebuild. My question is they want to cash pay us out and my understanding is they have to pay out on the current houses design. Southern Response appointed Geotechs turned up this morning to do deep core drilling and the engineer was a proper prat when I mentioned the house is on land fill and has deep piling. he basically said there will be no problem doing a standard rib raft floor. I said they are to sign all their reports as the ball will land back in their court if for any reason the ground underneath was to subside after a new build.

My question is, are Southern Response bound to pay-out for a like for like rebuild with deep piling as per the house now or can they save money by trying to pay out on their appointed Geotechs and Engineers advice for a standard rib raft floor.


barneymiller, Apr 18, 11:58am
Southern Response say to me that they will pay for the foundations I already have and nothing else. So going by that they will have to pay you for what is there and not what they think is required.
My lawyer says that they also need to pay for any enhancement that will be required, Southern Response say they only pay for what is existing.
I listen to what my lawyer says and this means they have to give me more that whats here presently.
If they offer you any less than what you have tell them to go away and you should get some legal advice.
I think Residential Advocacy Service would be a good place to go as they are free and give good advice

jonners2013, Apr 18, 12:07pm
i see on a daily basis Southern Response lying to people about their responsibilities and obligations.

read your policy. does it say new for old? does it say like for like?

figure out what the policy says, then hold them to it.

corkranb, Apr 18, 7:43pm
I should have also said mums house is 100 meters from the red zone and inside the category 9 flood zone so SR will now also be up for lifting to house to the new flood protection height.

retrodesign, Apr 18, 9:23pm
Corkranb, they have to pay the amount it would cost to rebuild/repair to today's standard. Quite often the geotech engineers won't know. They detail land quality and load bearing. A house then needs to be designed to building code around this and then a quantity surveyor would cost it. Settlement then needs to include things like accommodation allowance, carpets etc.

martin11, Apr 18, 11:02pm
Many with deep piling have not stood up to the quakes and the Ribraft design is in theory going to stand up better should more quakes happen it is a great improvement from the old methods of driven piles that houses were build with during the 70's and 80 's . Why rebuild to an old design that has proved to fail ?

bratpack06, Apr 18, 11:34pm
Rib raft isn't standard is it? It's a TC3 foundation, and expensive so should be better? I don't know, but you should have a lawyer help you with a cash settlement regardless, we are, it's still a nightmare with IAG :(

corkranb, Apr 19, 7:20am
The NZ building code says that land subject to liquefaction or on estuarine land needs to have both deep piles and a rib raft slab. That doesn't stop the insurance companies trying to spin MBIE guidelines which are quite irrelevant and don't hold up in a court of law.

corkranb, Dec 11, 10:40am
Here is the NZS3604 guidance here "quote".
"Following the on-going Canterbury earthquake sequence, and particularly the damaging 22 February 2011 Christchurch earthquake, the Department is reviewing the house repair and reconstruction guidance document. The enhanced raft slab options without deep piles are not appropriate on land where there is the possibility of significant settlement during liquefaction. This is likely to occur in areas where the crust (the depth between the ground surface and the water table) is thin, generally occurring in low-lying coastal and estuarine areas".

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