Home 'undamaged' but insurance cancelled

A Green Island mother's tough year just got worse after her insurance company removed coverage for her home which is unlivable because of a slip.

Tania Deaker's troubles started during last June's floods, when a bank on a neighbouring property fell away.

After a second slip in February, she was forced to leave her house when it was deemed unlivable by the Dunedin City Council and with the neighbour's insurance company still to sort a complex issue over who is liable for the damage, it remains uncertain when she will be able to return.

Ms Deaker's insurance company, AMI, had been helping her pay for alternative accommodation, but on Monday last week told her she would no longer be covered because the slip had caused no damage to her house.

Ms Deaker said this left her stressed and in a financially difficult position, after she signed a lease for another house for her and her 16-year-old son with the expectation AMI would be helping.

``On Monday when I left work I was violently ill. I just wound myself right up.''

She disputed AMI's conclusion there was no damage to the house, saying it was clear water had pooled under the house because of the stench of mould inside.

She also felt AMI had sprung its decision on her and called on it to do the right thing.

``No-one seems to care.

``They don't care that I am a human being.''

At the moment she and her son were living with her brother in a house with nine people in it.

AMI spokesman Craig Dowling said it had been giving Ms Deaker assistance because it was thought her house had been damaged by water associated with the slip.

``Verifying the existence and nature of damage is always a necessary part of progressing claims and the assessment only recently received by AMI was unable to identify such damage.''

This meant Ms Deaker was in the ``rare situation'' where she was restricted from accessing an undamaged home and was not covered by insurance.

``We know that places Tanya in a difficult situation which is why we have given her advance notice of the end to this entitlement.''

He said Ms Deaker was welcome to present further information if she believed damage could be proven and AMI had a process in place for customers to extend their concerns if they felt they had not been treated properly.

No insurer sought to prove ``no damage'', but it was necessary to go through the process of assessing claims, and if no damage was identified, then unfortunately no entitlements were available.

Ms Deaker's situation comes after her neighbour Tina Conway, who is also unable to return home because of the slip, at one point resorted to sleeping in her car.

Ms Conway's insurance company blamed the slip on a leaky council mains pipe, but a council spokeswoman said yesterday the issue of liability remained unresolved.

vaughan.elder@odt.co.nz