Earthquake Cash Settlement

Kaikoura earthquake recovery gaining momentum.

This blog talks about the Kaikoura earthquake recovery and it’s progress so far.

Since the devastating November 14 Kaikoura earthquake the recovery progress has been slow. As seen after the Christchurch EQ’s it took many months before the rebuild got under way.

The Earthquake Commission (EQC) has received almost 27,000 claims. Claims lodged spread across Christchurch, Wellington, Marlborough and Kaikoura regions.

There is no doubt the Christmas and New Year holiday period slowed down progress. Satellite hubs have since been established in Kaikoura, Wellington and Blenheim. Many of the assessors and resources coming from the Canterbury repair program.

With teams of assessors and hubs established the recovery efforts is gaining momentum. EQC and insurers are looking for quick settlements. Private insurers will be managing the assessment and settlement process. Cash settlements will be offered instead of a managed repair program. This new way of dealing with claims will be beneficial for many. I know of several Waiau residents who have already received their cash settlement offer.

Sources I have spoken to say most of the claims are for minor damage. With the push to have claims settled by December 2017, it would appear that this target is possible. A lot of the 27,000 claims will be for minor cosmetic repairs.

Finding skilled labour, trades and accommodation will be the next challenge. I know of a project management firm struggling to find accommodation in Marlborough. They are relocating assessors from their Christchurch office to their new office in Blenheim. Blenheim is also facing a builder shortage, with a wait list of 12 – 24 months on new house builds. Homeowners wanting EQ repairs completed will struggle to secure a builder.

Insurers to manage Kaikoura earthquake claims, not EQC.

This blog will give you an understanding why your EQ claim is being handled by your insurer.

A lot has been learnt 6 years on from the Canterbury earthquakes. An agreement has been meet between the Earthquake Commission (EQC) and private insurers. House damage claims under $100,000 and $20,000 for content were before handled by EQC. This time around private insurance companies are to control Kaikoura earthquake claims. This seen by many as a big improvement from Christchurch.

Both the insurers and EQC believe this will speed up the process and cut down on inefficiencies. Insurers and EQC have opted away from any kind of manged repair program. Instead they will be offering homeowners a cash settlement.

In a previous post I talked about the cash settlement process and the managed repair program. https://www.tradeink.co.nz/eq-cash-settlement-blog/

Insurers will be responsible for on-site damage assessments and the settlement of claims. EQC will still be responsible for all land damage claims. Insurers will receive a handling fee from EQC under the new agreement.

From my experience in dealing with EQC after the Christchurch EQ’s it seems like a good move. Too often we saw homeowners given the run-around by EQC. The biggest frustration we saw was the a portioning of EQ damage across many events. This practice meant for some homeowners they battled with EQC. Splitting up the cost of the claim kept it under the $100,000 threshold. In other words under cap. The Fletchers Earthquake Recovery (EQR) managed under cap claims. In the worst of the cases they were clearly an over cap claim and deserved to be treated so.