In the aftermath: rebuilding after a catastrophic house fire

A routine evening for Mike Hart and his partner Sarah, watching television in their pyjamas, soon became life-changing after a fire erupted in the master bedroom of their 100-year-old brick bungalow.

“I ran to the kitchen to grab the fire extinguisher but by the time I got back, the room was engulfed in flames,” Mike recalls of the evening in July last year. “I couldn’t get within a metre of the bedroom. It was terrifying and happened so quickly. I thought, ‘we’re stuffed’ and said to Sarah, ‘let’s get out.’”

Although they safely escaped with their pet dog and cat, every possession was lost, including sentimental items from Mike’s late grandparents and Sarah’s late sister. They watched the home they had shared for over a decade be consumed by flames. Investigators later determined the fire started due to a faulty multi-board. 

“One minute we’re watching TV, life’s good, and minutes later we are outside in the cold watching our house burn down, with nothing but our pyjamas and phones.”

Even in the midst of his anguish, Mike knew there were lessons to be learned. The father of three wanted to share his experience with others in the hope it would prevent it from happening to someone else.

With support from Fire and Emergency NZ (FENZ) and the Marton volunteer fire service, whose station is just across the road from Mike’s property, he opened his fire-ravaged house to the community to show first-hand the devastation.

“FENZ determined it was structurally sound, so we could safely bring people through. Sarah and I were there to meet and greet about 600 people including children. It was hard; we were opening our home, our nightmare, basically. But it was good to do.”

A resounding lesson was the importance of being insured, Mike says. With his house and contents covered by AA Insurance (AAI) – his provider for 30 years – Mike’s home was completely rebuilt and completed in August which, along with clean-up fees, he estimates having cost close to $600,000.

“I know we pay our premiums for this sort of thing, but I would be a financial ruin if it wasn’t for AAI; I couldn’t bounce back from something like that,” he says.

Mike, who has a background as a case manager for Work and Income NZ, understands how insurance is often something people on low incomes go without. He urges people to find a way to have cover in place and also regularly review the value of their home’s contents.

What also struck people was how quickly the fire took hold, despite firefighters – one a long-time friend of Mike’s and the first on the scene – arriving from the station across the road in as little as 10 minutes. So too was the importance of investing in a good quality multi-board with a trip switch and surge protector – and having it regularly replaced – or better still, having an electrician install a power point directly in the wall, Mike says.

“We had a cheap and nasty multi-board that we had bought about three years ago,” he says. “But it wasn’t overloaded. All that was plugged in was my bedside lamp, which was switched off at the time.”

Mike says it may have been gathering dust under the bed. “A lot of people have since told me they’ve been motivated to check their multi-boards, with one person even finding theirs charred behind the TV,” Mike says.

The support of the community has been the humbling, as they rallied around Mike and Sarah in the weeks and months following the fire, and this taught Mike to see the good in trying times. 

“We received cash gifts from the community. Someone offered us their two-bedroom, fully furnished granny flat to rent immediately after the fire which we used as interim accommodation, supported by a temporary accommodation allowance from AA Insurance,” says Mike, who later transformed a detached garage on his property into a short-term dwelling while the house was being rebuilt.

“It was a tragic and horrific event, and I wouldn’t wish it on anyone, but it’s simultaneously been a really rewarding experience. You learn from the struggles, it’s what develops you as a person.”

Home and Contents insurance isn’t just a nice-to-have, it’s what helps put things right when the unexpected happens. “Your home is more than just a building, it’s where life happens,” he says. “It’s generally your most valuable asset, and the things inside it hold your memories, milestones and everyday essentials.

“Whether it’s a fire, flood, break-in or natural disaster, insurance helps you with practical and financial support to recover, rebuild and move forward.”

Simon says homeowners and renters should ask themselves the following questions:

• Can you afford to replace everything you own at once?
• Can you cover emergency repairs or accommodation on your own?
• Could you manage the cost of repairing or even rebuilding your home if it were badly damaged?

“It’s not just about protecting your property, it’s about protecting your lifestyle, your financial future, and your peace of mind,” Simon says. “That’s what insurance is for."

Simon says a common misconception about house insurance is around the sum insured, with homeowners often assuming the figure is based on their home’s market value, purchase price or council valuation.

“In reality, your sum insured should reflect the full cost to rebuild your home from the ground up, including demolition, site clearance and rebuilding to today’s standards,” Simon says.

He outlines how homeowners should continue to review their sum insured. “Rebuilding costs can change over time, and so can your home. That’s why it’s important to regularly review and update your sum insured, especially if you've renovated, extended, or noticed rising construction costs.

“If your sum insured is too low, you could find yourself underinsured when it matters most. That’s a situation no one wants to be in at claim time,” Simon says.

AA Insurance is one of the few providers to offer full replacement cover for fire, flood, and storm damage – provided you've made a reasonable effort to set your sum insured and home details accurately. So even if your rebuild costs go over your sum insured, you will still be covered for the full cost to rebuild.

While updating your sum insured may increase your premium, choosing a higher excess may help manage costs. The AA Insurance team is happy to guide you through any queries.

There is also an online calculator available to estimate a realistic rebuild cost. See aainsurance.co.nz or call 0800 500 216 for more information.