Who should pay for the replacement of shared drive way owned by 2 persons that was destroyed not by the earthquakes but by the rebuild of one of these properties? Do I have to except a cash settlement?- surely if I didn't damage the drive it should be replaced? What happens if my neighbour takes the cash settlement then doesn't use the money for the drive? Many Thanks
Asked: 9 April 2015
Insurance Council of New Zealand (ICNZ) advises:
What an insurers obligation is depends on the insurers policy wording. In many cases the insurer is only obliged to pay the cost of the damage. In shared property circumstances it is quite usual to cash settle as not all parties may agree on the repair, its timing etc.
The insured needs to look at their memorandum of lease to understand what rights it has to force the neighbour to repair.
If your driveway is damaged in the process of rebuilding your home or the neighbouring home, it needs to be replaced as part of that rebuild project. If a neighbour obtains a cash settlement, in these circumstances they are obliged to reinstate the driveway. Legal advice should be obtained if they refuse or attempt to avoid their obligation.