The Insurance Council is reassuring homeowners that they should not be unduly concerned about insurance claims being declined for homes built with steel mesh sourced from Steel and Tube.

The reassurance follows the Commerce Commission’s decision to fine Steel and Tube for making misleading representations about the strength and stability of its steel mesh. 

The company sold mesh with test certificates displaying the logo of an independent lab and the signature of a lab manager. The commission found the signature of the lab manager was a Steel and Tube manager.

Following the Canterbury earthquakes, steel mesh standards were increased. Complaints were made to the Commerce Commission in 2015 that some manufacturers were not meeting those new, higher standards and subsequent testing confirmed that to be the case for some samples tested - including those of Steel and Tube.

"Insurers insure homes throughout New Zealand, from those built as far back as the 19th century through to the most modern homes that fully meet the 2018 building code requirements", said ICNZ chief executive Tim Grafton. "Even if homes have been built using steel mesh that does not meet today’s standard it does not mean the construction is unsafe. It may even be of a standard that exceeds that in many homes that were constructed before the standard was raised.

"If insurers have agreed to insure a house, then in the event
of an earthquake the steel mesh standard used would not lead to declinature. If non-compliant mesh had contributed to the
damage incurred, insurers could consider pursuing the at-fault party for recoveries."