A landmark case between Tower Insurance and a retired Christchurch couple with a house in the earthquake-hit red zone has been settled.
Matt and Valerie O'Loughlin have had a 20-month-battle with the insurer and in March this year went to the High Court in March in an attempt to get it to pay for a full replacement of their damaged home.
Tower had offered a settlement to repair the Dallington property, despite the fact it was zoned red, which means the land can't be rebuilt on.
The parties have come to an agreement after Justice Asher made a ruling on 5 April that Tower should pay the O'Loughlins for the full replacement value of their home up to $540,000.
The couple believed they were owed the amount it would cost to rebuild their house. They were claiming about $660,000 and an extra $50,000 for stress caused by the dispute.
Tower had argued that they should be paid only the cost to repair the house. Managing director Rob Flannagan said on Friday he is pleased that the case has been settled and all parties involved can now move on.
The O'Loughlins say they are relieved and hope their case gives people the confidence to fight for their rights. They advised people in a similar position to get professional reports and good legal advice.
The terms of the settlement are confidential.
