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Archived Updates

2014 Updates

December 2014 Our claims settlement approach

 

Our claims settlement approach

We continue to make steady progress on our Earthquake Reinstatement Programme and would like to clarify our claims settlement approach for our remaining claims, which provides three settlement options.

As your insurer, we cover the costs that are reasonable and necessary to repair the earthquake-related damage to your home, subject to the limits of cover under your policy.

Experts from Beca, our programme manager, give us technical advice to determine what costs are covered by your policy.

Claim settlement options

We will generally settle your claim by one of three options:

1. Where you do not intend to repair or rebuild your property, we will give you a full and final cash payment to settle your claim. This payment will be for the agreed cost to reinstate your property – or, if we cannot reach agreement, we will pay you the indemnity value of your property.
2. If you intend to repair or rebuild your property, but:
  1. you choose to make changes or upgrades to the property that have increased the estimated costs by more than 10%; or
  2. we cannot agree to certain factors of the repair or rebuild, for example because they will significantly delay the project’s completion
we will give you a pre-construction payment. This is an upfront lump sum payment that is based on either the estimated or known costs to repair the earthquake-related damage to your property.
3.

Where you intend to repair or rebuild your property, and:

  • anticipated changes or upgrades have not increased the estimated costs by more than 10%; and
  • there are no factors significantly delaying the timeframe for completion

we will continue to manage your repair or rebuild project, unless you would prefer to manage it yourself.

 

We hope this update has been useful for you.

If you have any questions, please contact us on 0800 800 627 or email us at info@mas.co.nz.

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