Couple in standoff over $5m repair
Family say insurer’s plan to fix fire damage would not remove contamination
The owners of a $20 million beachfront home badly damaged by fire, locked in a battle with their insurer, claim they would be living in a contaminated “patched-up” property if the company had its way.
Takapuna couple Evan Christian and Katherine Allsopp-Smith remain in dispute with IAG-owned NZI Insurance almost a year after fire destroyed part of their luxury home on Takapuna beach.
Repairs have not started at the house because the couple, who have three young children, believe they would be left with soot-contaminated walls and a water-damaged home if they accepted NZI’s scope of repairs.
They are prepared to take the Australian-owned company to court to highlight what they maintain are “delay, deny and defend” tactics.
The pair are so passionate about the cause they have been in contact with owners of other fire-damaged homes to make sure they are getting the right support and advice.
“This is not about the money and it’s not about us anymore. It’s about making the insurance industry fair for all New Zealanders,” Christian said.
“Since the fire, we have spoken to so many families who have had to accept cheap repairs because they can’t afford to fight.”
The couple say they have talked to homeowners who have accepted repairs only to find their homes remain affected by soot, mould and odour years later.
The North Shore couple had less than three years in their “dream home” when fire broke out in the garage in May 2018 as the family slept.
Alerted by smoke alarms the family, including Branson, 6, Pearce, 4, and Bodhi, 3, and live-in nanny Dana Banks, all escaped the fire but their cat Snowy died, despite attempts to resuscitate him at the scene.
The family lost everything in the fire and the home was extensively damaged by either fire, smoke or about 36,000 litres of water the fire service had to use to put the blaze out.
The fire was believed to have been started by the charging battery of an e-scooter.
The couple thought the home would be repaired to an “as new” condition as their policy stated.
But instead, the couple said NZI wanted to use a treatment called Ozone, which relies on a chemical reaction to sanitise odour, rather than removing the soot.
“We have had independent tests done which show contamination in every room at different points in the walls and insulation,” Allsopp-Smith said.
In the first meeting Christian said NZI representatives agreed to remove and replace all wiring, flooring and GIB. “But then, when they had it priced they reneged.”
Allsopp-Smith said the assessors aimed to shoehorn the repairs into a budget instead of honouring the “as new” agreement of the policy.
The pair want to see more robust regulations in the insurance industry and said they are willing to go to court to fight over standards that they say leave thousands of New Zealanders at risk each year.
The family want to see public adjusters, who negotiate on behalf of insured, appointed in New Zealand.
The family also want to see the method of masking the smell of soot banned and are researching bringing in overseas experts to explain the science in court.
Ozone or fogging treatment is banned in some countries but used in New Zealand. Christian noted that in NZI’s own commissioned report into the fire the treatment was not recommended “unless their use can be proven to be safe”.
Christian said he had been advised the house, which was insured for $4.5m, would cost about $5m to repair. The insurer’s estimate put the repairs, using the Ozone treatment, at $2.5m.
In a statement to the Weekend Herald, an NZI spokesman said the company wanted to settle Christian’s claim “as appropriately as possible while at the same time ensuring the job is done properly”.
“NZI will be continuing discussions with Evan and his broker, including awaiting further information from the assessors.
“We will continue to work closely with Evan and his broker to settle this claim appropriately.”
Tim Grafton, from the Insurance Council of New Zealand, said if a customer had an issue with a decision their insurer has made, they can raise it as a complaint with their claims manager or their insurer’s internal disputes team.
This is not about the money and it’s not about us anymore. It’s about making the insurance industry fair. Evan Christian, owner of damaged home