It is now over 3 months since the Canterbury Earthquake and December 4th has recently passed, being a significant date. The standard time frame for a claim to the EQC is 1 month however for this event they extended that timeframe to 3 months. Therefore December 4th 2010 was the last date on which to make a claim. EQC have gone to great effort to ensure all possible claims are notified and the final tally is now said to be around 160,000.
Progress and Timeframes
EQC is currently stating that they are trying to have all claims under $10,000 settled by Christmas 2010. Claims that are over the $100,000 EQC threshold are being dealt with on an "as identified" basis. All other claims between $10,000 to $100,000 are being handled by Fletcher Construction on behalf of EQC. Fletcher Construction are still in the process of setting up offices and systems and their process is not going to be swift. They hope to have all claims inspected only by March of 2011. Land damage is going to take a further 18 months to have remediated. Therefore we recommend that if you have significant damage to your home that is preventing you living at the premises, but you have not had an initial inspection yet they you continue contacting EQC and/or Fletcher Construction. Your own insurance company is not able to deal with the matter until it has been dealt with by EQC.
Current Issues
Many people may have had a telephone settlement from EQC for relatively minor damage and been paid the settlement claim. You need to be very sure and confident that this settlement will cover you for all damage, as it is a full and final settlement for your claim. We also recommend that where you have had a significant claim paid to you such as the EQC maximum then you also need to liaise with:
A. Your mortgagee as they are entitled to the payment; and
B. Your insurer to establish what the exact process will be and what you are going to be able to rebuild, before you bank the EQC settlement.
There are some situations arising where banks are taking the settlements as debt reduction and refusing to readvance due to particular circumstances.
If you have specific earthquake related issues then please contact your usual lawyer immediately or Toby Giles.
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Property Owner