The Supreme Court has thrown out an appeal by Tower Insurance, after it argued it should have more control over how it chooses to settle a Christchurch earthquake claim.

Skyward Aviation, which owns a red-zoned Burwood property, has been fighting the insurer over a $3000 difference to the estimated costs of repairing the property.

Tower argued any payment would have to based on cost of buying a similar house elsewhere, meaning Skyward Aviation would need to purchase a replacement home of a similar size, condition and style.

The Supreme Court has poured cold water on that, ruling Skyward Aviation is entitled to make its own call on the type of replacement home it would like to buy.