In this update we'll tell you about recent progress on settling Kaikōura claims, and why it's important to complete those repairs once you've received your settlement.
EQC and Insurers held a community drop-in session for Kaikōura residents on 14 June. Turnout was lower than we had anticipated, with 8 homeowners turning up to ask questions about the next steps in getting their homes repaired. While your home is repaired, the Temporary Accommodation Service can help you find a place to live, either in the private rental market or in the Housing Recovery Village. Homeowners and tenants can register with TAS, and the service is not income or asset tested. To find out more or register, go to temporaryaccommodation.mbie.govt.nz or call freephone 0508 754 163.
As you will see in our figures below, 98% of all residential building claims are settled. This means that by now, most of you will have received your EQC settlement payment and a copy of your scope of works from your Insurer. The scope of works shows a breakdown of damage and the costs that have been calculated to repair or replace the damage. If you haven’t already, you should approach a builder (contractor) to quote for the work to be carried out.
Your contractor’s quote should cover all the work required to repair or replace your earthquake damaged building and should be based on the scope of works.
If you receive your contractor’s quote for the entire job and the amount quoted is more than the settlement amount for your EQC building claim, you can ask your Insurer to review your EQC settlement amount.
When seeking a review, it is important that the contractor’s quote you submit is broken down and clearly shows where the differences are between the insurer scope of works and the contractor’s scope of works. The quote should set out if your contractor identifies missed items of damage or if there are issues with the repair strategy. It should also state if your contractor’s pricing is higher than the pricing we have allowed for in the insurer scope of works.
After you have received your settlement payment, it is up to you how you manage the repairs of your home. All building work – even building work that does not require a building consent – must comply with the New Zealand Building Code. If you are considering doing your own repairs, we recommend that you get advice from an appropriately qualified person before arranging the repairs, to discuss the approach to the repair and whether any consents are required.
As we have mentioned in previous updates, the Ministry of Business, Innovation and Employment (MBIE) has published a guide to help you plan and manage the rebuild and repair of your home. You can find the guide “Rebuild with confidence - A guide for homeowners rebuilding after the Hurunui/Kaikoura Earthquake” on the MBIE website at building.govt.nz/rebuild-with-confidence. Similarly you may have seen this booklet on your council website.
It is really important that the EQC settlement payment is used for the purpose of repair or replacement of the earthquake damage to your property. In some circumstances, any future EQC claims may be affected if your EQC settlement payment is not used for this purpose.
You’ll also need to keep in mind that costs generally increase over time so you probably don’t want to leave the repair or rebuild work too long. If you choose to delay your repairs, increased repair costs are generally not a reason to request a review of your settlement.
So how we are doing and what’s left overall?
As at 22 July 2018, of the 38,758 residential claims that resulted from the 2016 Kaikōura earthquake:
- the Insurer Managed portfolio is 99% assessed and 98% settled
- the EQC Managed portfolio is 98% assessed and 97% settled, and we are very happy to report that we are now under 100 claims remaining to be closed.
So far we have paid:
- $515 million to insurers who manage EQC customers on our behalf
- $38.9 million to customers we manage (land and/or properties with open or unresolved other claims for prior natural disaster damage).
Supporting information for EQC customers
If you have any questions about the Kaikōura insurance claims, please check out our Frequently Asked Questions (FAQs)
If you have any feedback on this newsletter or the Kaikōura FAQs please let us know. Email us at firstname.lastname@example.org