Insurance Companies Delay, Builders Businesses Crash & Burn

4 July 2013

Insurance Companies Delay While Builders Businesses Crash and Burn

Builders are struggling to find work despite repeated reports that the rebuild is ramping up.

Christchurch QS and owner of QS Red, Victoria Whitta, says she feels she has to speak out as the affected builders won’t, as they fear being blacklisted.

“The despair and stress in the building sector is increasing every day,” she says. “I have had grown men in tears in our offices over the last few weeks and it breaks my heart. These guys are experienced builders and business owners who were told to “tool up”, be ready for the rebuild and that was well over a year ago. Many are still waiting and just can’t carry the business without any work any longer.”

Whitta says there is a massive amount of work in both the commercial and residential sectors but it is being held up by insurance companies.

“It’s just not on,” she says. “I know from my day to day business that a lot of the delaying is unjustified and after the insurance companies told them to get ready for the work, they are now holding it back which is on the verge of destroying a number of local builders and their businesses.”

Insurance Advocate Dean Lester who is working with hundreds of Cantabrians to help them progress their claims, agrees and says the Insurance Council has also got to step up.

“ICNZ is clearly committed to efficient processes as they have said in the last few days with regard to the CCC consent issue", he says. “ICNZ’s Tim Grafton has been quoted saying, "We look forward to a more efficient and streamlined processing of consents to support a safe and sustainable rebuild," and 'I'm unsure why a streamlined and efficient process doesn't exist with more claims."

Victoria Whitta believes the Government should step in and facilitate the progress and resolution of claims because as things stand, there is nothing that is “incentivising” insurance companies to get moving.

“Sure the insurance and claims process can be complex but that’s why people are trained and experienced enough to progress claims. If the powers that be continue to say everything is OK and not acknowledge and actually resolve the unjustified delays that are occurring, I am really concerned about what that will do to builders and the communities they are a part of. Look at what happened at the council with regards to consents; we cannot have a sudden revelation around the delays that are strangling our builders, it could be too late.”

For more information please visit www.redgroup.co.nz

ENDS

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