Our clients were an elderly couple located in Linwood who had purchased a house built in 1920, located in a quiet neighbourhood they absolutely adored.
When the earthquake events occurred in September 2010, their home suffered minor damages, so they made a claim to the Earth Quake Commission (EQC) regarding damage to their land, and cracks to the wall, chimney and their ring foundation. EQC claimed that the damages did not pose any structural threat to the building and scoped repairs to patch up the cracks.
When the second earthquake occurred in February 2011, our clients’ property was badly damaged and the patched up cosmetic cracks reopened. The damage to the floor levels of the house was over the MBIE tolerance that stated a full or partial foundation replacement was required. However, while EQC did note this, they never made any repairs to the foundation and only estimated a total repair value of less than $20,000 to fix the property.
Our clients, having lived there for more than 15 years, had been struggling with the overall function of their home, such as doors and windows not closing properly.
My Insurance Claim’s Process
Our clients approached My Insurance Claim (MIC) for help, so during our initial consultation we explained their rights and how we would run their claim. Since then, MIC has represented this couple in their claim against EQC and their insurer.
- Conducted an internal Preliminary Damage Assessment
- Obtained our clients’ documentation from their Insurer and EQC (under the Official Information Act 1982)
- Established the facts from the clients’ perspective
- Undertook a Full Damage Assessment and Report of the property
- Engaged with EQC to present damage reports for reconsideration of our clients’ claim.
- Reassessment of the property by EQC experts and Quantity Surveyors on costs which activated the liability of the private insurer at the time of the earthquakes.
- Negotiated with the private insurer’s experts (such as engineers and quantity surveyors) to reach a settlement agreement.
After 14 months of liaising with the private insurer and negotiating an outcome for the claim, MIC was finally able to achieve a successful outcome for our clients. In January 2020, the homeowners welcomed an offer of $370,000.
As a result, our clients have managed to fully repay their reverse mortgage and are looking forward to finally being able to enjoy their retirement.