Insurance behind delayed building repairs – report

Broker says insurer won’t cover cost of damages

Insurance behind delayed building repairs – report

Insurance News

By Krizzel Canlas

Insurance problems have stalled repairs to a prominent Dunedin heritage building for months, it has been suggested.

A report by Otago Daily Times detailed the case of King Edward Court, which was damaged by an out-of-control truck in April. An Intergroup truck reportedly crashed and demolished sections of a solid fence at the front of the building. Five months on from the accident, there remained no sign of repairs to the front of the Category 1-listed heritage building.

The publication reported that building manager Roberta Coutts would not discuss the hold-up, or pass on contact details for the building’s owners, who are overseas.

However, insurance broker acting for Intergroup Bryce McLean told Otago Daily Times that the truck company’s insurer, NZI, would not cover the cost of the damage. He explained that a police investigation had found no negligence on the part of either the truck company or its driver, whose actions were praised after the incident.

“The law says that you are not liable for any damage you do if your vehicle or yourself is the subject of a pure, unintended mechanical failure or accident,” he said. “The legal term is ‘the losses lie where they fall’.”

McLean added he did not know if the building was insured, but reportedly said Coutts was in contact with Intergroup to discuss an alternative solution.

“Whatever the delay is will be a matter between the building owners and their insurers,” he noted.

The building, formerly the home of King Edward Technical College, marked its centenary in 2013. It remains home to a wide variety of sports clubs, small businesses and community groups. It was identified as in need of investment by former DCC heritage policy planner Glen Hazelton during a heritage talk last month.

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