Insurance restrictions 'hurting construction firms'

1:40 pm on 15 September 2011

Some construction companies in Christchurch say the reluctance of insurance companies to pay out on claims is crippling the industry and stalling the city's rebuild.

All the major insurance companies have restrictions on their policies, and are wary of covering new building work until seismic activity has died down.

Several constuction companies spoken to by Radio New Zealand have laid off staff and are struggling to stay afloat.

Many are unwilling to speak on the record, fearing it will damage their business even more.

They say the fact that insurers are not covering the building of new homes and are reluctant to pay out for quake repairs is hurting the industry.