Family left in limbo

Vicky Singh was thanking her lucky stars for insurance when a fire left her Wainuiomata home uninhabitable in August last year, but now she’s not so sure.

She feels like she’s been hung out to dry by her insurer, AA Insurance, after being told her accommodation allowance was being terminated next month despite repairs not having been completed on her house.

‘‘All your life you pay insurance thinking you’ll be covered, but hell no. You have to fight for every little bit. I’ve been in tears – mentally it’s been breaking me into pieces.’’

After accepting her claim and contracting the repairs, AA Insurance told Singh her house would be ready in May 2022. She was given a $20,000 accommodation allowance to house herself, her three children and the family dog while repairs were taking place. Singh began to worry when work on the house started getting pushed back. A shortage of building materials was cited, and this month she was told the deadline would not be met.

The fire, which Singh’s family escaped in the early hours of the morning, destroyed the living room and kitchen and part of the roof. Her home remains wrapped in plastic to protect it from the weather. This week, AA Insurance informed her the accommodation allowance would end. It had already topped it up an extra $14,000.

Tom Bartlett, AA Insurance’s head of home claims confirmed supply chain issues had affected the work. He appreciated it was a difficult time for the family, but said the company had gone beyond its obligations to help them.

‘‘We have already extended her cover beyond the policy limit.’’

He said the company worked closely with its customers to make the claims process as smooth as possible.

‘‘The temporary accommodation allowance in our home policies is designed to ensure our customers have suitable accommodation while repairs are being made on their home. Ultimately it is up to them how they choose to spend it, but we take steps to talk through options with customers, including how the allowance can be used to ensure it is comfortably sufficient.’’

Singh said the fact that her house had not been repaired was not her fault and felt AA Insurance should not cut the allowance until their contractors had finished the job. Bartlett said AA Insurance would continue to provide support for Singh and her family until the repairs were completed.