There is hope that a precedent-setting Canterbury Earthquake court case will teach the public not to trust what they're being told by insurers.

The Crown's announced it won't appeal a court decision - ordering state-owned insurer Southern Response to pay out a Christchurch couple.

Earlier this month the Court of Appeal found the agency deceived Karl and Alison Dodds - by keeping secret a higher estimate to rebuild their quake-damaged home.

Dodds family lawyer Peter Woods told Mike Hosking private insurers will probably try to distance themselves from the decision.

"It will also open the window on how insurance companies act generally, which will be good for the public to know."

Woods says at the original High Court case there were about 1600 families in a similar position.

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