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Question Details: My neighbour's property is now being sold by mortgagee sale. Can I get compensation for the damage that happened to my property before the auction occurs?
Filed under Property Law | 1231 View(s)
Community Law Wellington & Hutt Valley
You may be entitled to compensation for damage caused to your property, depending on whether your neighbour is at fault.
If you have insurance that you think might cover the damage, you should talk to your insurer, whether you believe your neighbour was at fault or not. Your insurer may take legal action against your neighbour (or neighbour's insurer), if it believes that they are liable and the debt is worth pursuing.
If you are not insured for the damage, you may be able to claim compensation from your neighbour, depending on whether they are at fault. If the fire was lit by someone other than your neighbour or began due to natural causes, then you probably have no claim against your neighbour. But if your neighbour started the fire themselves and let it spread onto your property, they may have to compensate you for the damage. If your neighbour knew there was a risk of a fire starting on their property and spreading to yours but they did nothing about it, they might also be liable to compensate you.
You should not rely on the above information if you wish to take legal action, because the answer to your question will depend on all the circumstances leading up to the fire. If the damage was significant, you should consider contacting a lawyer promptly to ask whether you might be able to register a caveat over the neighbours' property in case you can claim proceeds from the mortgagee sale. Search for a property lawyer here: www.lawsociety.org.nz.
Answered 5 Sep 2013. The IMPORTANT NOTICE below is part of this answer.
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