Insurance company changes mind

AMI Insurance is reviewing its treatment of claims for lost rental income due to the earthquake after inquiries by The Press.

An insured party who wants to remain anonymous said AMI had refused to accept a claim for loss of rental income from an earthquake-damaged residential property rented to tenants even though the house and contents policy had that additional cover.

AMI had told the insured party that the Earthquake Commission (EQC) covered damage to homes by earthquakes up to $100,000 and AMI picked up any losses higher than that. The insured party said AMI was tying the additional rental income cover to the EQC cover but that was not stated in the policy.

However yesterday Matthew Cody, AMI executive manager marketing, said there had to be a claim against AMI and that was not the case as it was against EQC.

But that meant there was a gap in the cover for the insured over loss of rental income.

AMI had decided to treat a claim accepted by EQC as a valid claim and the policy on loss of rental income would apply, he said.

That instruction would go out to staff immediately, Cody said, for people who had lodged loss of rent claims. The unhappy party should discuss the claim again with AMI, he said.

- © Fairfax NZ News