Deadline extended for earthquake damage claims for ‘on-sold’ properties
Time may be running out to claim additional ‘over-cap’ repair costs from the Earthquake Commission (EQC), but now ‘on-sold, over-cap' property owners have an extra two months up their sleeves.
The New Zealand government and EQC announced in August of last year a twelve-month period to claim the cost of corrective repairs arising from insufficient repairs or un-scoped work missed by EQC. This deadline has been extended for another two months to 14 October 2020, which will be the last chance to apply for what is expected to cost the government over $300 million in ex gratia payments.
Canterbury residents who purchased their homes since 2011 may be unaware of their rights as ‘on-sold’ buyers, and have suffered stress wondering if they can get their homes fixed as a result. This is where the team at My Insurance Claim can help.
Am I eligible for the Government On-Sold Support Package?
The Government On-Sold Support Package is an offer to compensate the ‘over-cap’ portion of necessary earthquake damage repairs for homes affected by the Canterbury Earthquake Sequence (CES) of 2010-2011. This compensation is on top of the standard EQC cap of $100,000 + GST.
Homeowners who purchased their properties on an “as is, where is” basis, or discounted from the market value to reflect that the earthquake damage had not been repaired, will not be eligible for the ex gratia payment.
To be eligible:
- Homeowners must have purchased their property after the earthquake damage arising from the CES, and before 14 August 2019.
- The original owners of the property must have lodged at least one claim with EQC for the 2010-2011 earthquakes and EQC deemed this claim to be under-cap.
- Homeowners are unable to access private insurance to cover the over-cap portion.
What does EQC cover?
EQC has reiterated it is the responsibility of home buyers to do their due diligence and get a detailed building inspection before they buy a property, especially in an area that has been subject to an earthquake or other natural disaster. While an EQC assessment is designed to validate claims for earthquake damage, it is not intended as a full building report.
Unfortunately, many Canterbury buyers solely relied on EQC assessments to judge the state of a property and have now noted further damage to repair. Without applying for the Government On-Sold Support Package scheme, homeowners are limited to the cap only.
To be eligible for payments over $100,000 + GST under the Government On-Sold Support Package scheme, homeowners who haven’t already had their home assessed will be required to engage an independent contractor to determine the cost and the extent of repairs. This will be at cost to the homeowner.
What is the benefit of My Insurance Claim?
My Insurance Claim (MIC) is an earthquake claims service with an expert team who can provide an independent assessment and professional advice to homeowners of ‘on-sold’ properties. We understand some ‘on-sold’ buyers may not have the time, knowledge, energy, or financial resources to represent themselves during this process, which is why MIC will run your claim on a No Win, No Fee* basis. We remove the financial burden of taking action against EQC by:
- determining whether the property meets the eligibility criteria for this policy
- arranging a FREE initial damage inspection and a Full Damage Report
- investigating the liability of EQC to provide an 'over-cap' payment
- negotiating the ex gratia payment with EQC to receive the full entitlement
MIC are confident in achieving the maximum compensation for you. Time is ticking to apply for the ‘over-cap’ payment, so get in touch with MIC today for a free professional damage assessment of your property.