Thousands of homeowners to be automatically included in class action against Southern Response

Thousands of Canterbury homeowners will be automatically included in a Class Action lawsuit against insurer Southern Response, the Court of Appeal has ruled today.

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It could end up costing the Government’s earthquake insurance company tens of millions of dollars. Source: 1 NEWS

It includes around 3000 homeowners who claim they were underpaid before 2015 by being given the lesser of two “quotes”, known as detailed repair assessments (DRA’s).

Today’s ruling means unless claimants choose to "opt out", they’ll all be included in the class action.

The cost to Southern Response and the taxpayer is estimated to be around $300 million.

In a statement to 1 NEWS, Southern Response says its considering the court findings and will take some time to decide whether to appeal.