Law Society warns Christchurch homeowners
Concern at reports of Christchurch residents settling insurance or property-related matters without awareness of their full entitlements has caused the New Zealand Law Society to place warning advertisements in Christchurch newspapers The Press and Mainland Press.
The advertisement states that the Law Society is concerned at reports of settlement agreements being made to the detriment of homeowners who have accepted offers which appear attractive at first but which may be regretted later.
Christchurch lawyer Andrew Logan, who is also deputy chair of the Law Society’s Property Law Section, says the situation is a clear demonstration of the value of obtaining legal advice.
“A number of lawyers have been contacted by people who have accepted a cash settlement from their insurance company, but are now finding that the amount is far less than is what is needed to pay for reinstating their property,” he says.
“Everyone who lives in Christchurch is experiencing a stressful and trying situation, and it’s very natural for people to want to settle their insurance claims and start rebuilding for the future. The problem is that if you don’t take a careful look at the terms of any settlement agreement, you could find you have bound yourself to accepting something which is much less than could be gained by negotiation.”
Mr Logan says another area where problems had been reported is insurance customers being asked to sign agreements with contractors when work is being paid for by EQC. This has sometimes resulted in the customers having to pay a shortfall in the agreed amount themselves.
“We are also concerned that over the next few years anyone buying or selling a property in the Christchurch region should sort out responsibility for repairs or other matters caused by the earthquake. The usual agreements do not allow for this and some specially drafted clauses might be required,” he says.
Mr Logan says the advertisement has been placed by the Law Society and its Property Law Section because of concerns that people might be signing away their rights without fully appreciating what they were entitled to.
Contact: NZLS