Four changes to the Earthquake Commission (EQC) Act have come into effect this year. They are part of an overall push to put in place the lessons learned from recent event responses including the Canterbury earthquakes.
The changes relate to EQC’s insurance product, EQCover, and the claim management process to improve how EQC reduces the impact natural disasters have on people and property.
One of the first changes that came into effect in February (and is retrospective) will impact vendors and prospective buyers, where obtaining EQC documents related to the property is important.
EASIER ACCESS TO PROPERTY-RELATED INFORMATION HELD BY EQC
EQC now has more scope to share information about residential property claims. The Act defines property-related information as information about natural disaster damage to a residential property (dwelling and land) and any claims made under the Earthquake Commission Act.
It also covers information about the assessed cost of replacing or reinstating damaged property, what repair work has been carried out and settlement amounts. For example, EQC can provide claim information to a prospective buyer of a house that they have previously arranged to repair.
Anyone can make a request for information about claims lodged with EQC, including previous claims. However, this does not mean that we share personal information such as contact or financial details. EQC is still bound by the provisions and protections under the Privacy Act, and to balance this requirement against the equal need to attend to the public interest.
It can take up to 20 working days to obtain property-related information about any previous claims for damage, so to avoid delays it is still encouraged that the vendor request documents from EQC before putting their home on the market.
The two changes to EQCover (and not retrospective) are:
AN INCREASE IN THE CAP EQC CAN PAY FOR RESIDENTIAL BUILDING DAMAGE
This change to EQCover sees the amount EQC can pay on new claims for natural disaster damage to residential buildings rise from $100,000 to $150,000 (+GST). The increase recognises the increase in building costs and means less over-cap claims will need to be passed onto private insurers.
Cover for any damage above that amount continue to be according to private insurance policies.
REMOVAL OF EQCOVER FOR DAMAGE TO HOME CONTENTS
The second change to EQCover sees $20,000 cover removed for damage to home contents. This change means that, after a disaster, EQC will be able to focus its efforts on resolving claims for residential building and land damage.
Again, cover for replacing damaged contents will be according to people’s private insurance policies.
Both these changes to EQCover will be phased-in over 12 months from 1 July 2019 as existing insurance policies are renewed or replaced.
EXTENSION OF THE TIMEFRAME FOR LODGING A CLAIM FOR DISASTER DAMAGE
The final change to the EQC Act sees the time increased for lodging a claim for natural disaster damage from three months to two years.
Despite this increased timeframe EQC are still encouraging people to make a claim as soon as possible following the natural disaster event. This is because delays in lodging a claim can make it more difficult for EQC to attribute the damage to a natural disaster and assess the claim.
But with the immediate aftermath of a natural disaster being a very stressful time, it’s good to know Kiwis have that buffer if they need it.
For more information on the EQC Act changes visit:
www.eqc.govt.nz/act-changes
