CHIMNEY DAMAGE.

New Zealand Herald, Volume LXVIII, Issue 20867, 8 May 1931, Page 12

CHIMNEY DAMAGE.

EFFECT OF BIG EARTHQUAKE. TEN PER CENT. DEFECTIVE. UNDERWRITERS' INVESTIGATION. The damage -done in Gisborne by the earthquake which caused the devastation of Napier, Hastings and Wairoa in February was not extensive by comparison, but had it been a purely local occurrence it- would have loomed large. Subsequent investigation lias proved that the earthquake effects in Gisborne will cost a considerable sum in the aggregate and now a substantial addition has been made to them. During the last month or two underwriting interests have had inspectors in Gisborne carrying out a house-to-house inspection of chimneys, and it is understood that no less than 10 per cent, of the chimneys of the town wore found to ho defective. In a fairly large proportion of cases the faults were not obvious to the owners. It required expert investigation to disclose them. This degree of damage as well as the hidden nature of much of it suggest the possibilities of Wednesday night's shocks as far as chimneys are concerned. As to the liability of, the insurance companies for fire losses brought about by chimney faults that were caused by the earthquake there may be room for a good deal of argument. The ordinary policy excludes from its cover loss or damage " directly or indirectly. proximately or remotely " occasioned or contributed to by hurricane, volcanic erruption, earthquake shock or other convulsion of nature or by fire withiiu24 hours of the occasion. Another condition disclaims liability for loss occasioned by the fall of any building or part thereof except as a result of fire and another debars a claim "if tho trade or manufacture earned on be altered or if the nature of the occupation of or other circumstances affecting tho building insured or containing the insured property be changed in such a way as to increase the risk of loss or damage by fire." It follows that if a chimney with defects created by the earthquake were used it would bo a ciYcumstance increasing the fire risk within the meaning of the clause and presumably the cover would be in jeopardy. So far as can be gathered none of the several fires that have occurred in Gisborne of lato has had its origin in chimney faults, but it is obvious that- the risk must increase now that tho season for the heating of rooms is hero, unless repairs liaye been carried out. It is a question whether every owner affected has the means of carrying out the necessary repairs and it therefore would appear rhat the general insurance position is somewhat chaotic. The latest shake and its effects will naturally complicate the position further. It is known that a fair amount of earthquake insurance has been taken out at Gisborne and elsewhere since the great upheaval, but apparently it is a class of business that is not sought, being generally accepted as a. part of existing covers.