Apportionment is the process by which EQC determines who is liable to pay claims under the Earthquake Commission Act.

We have to do this because the cost for claims that are over cap (usually more than $100,000 + GST) is split between EQC and private insurers. These costs have to split correctly because EQC, private insurers, reinsurers to EQC, and private reinsurers need to know they are paying only for what they are liable.

How does apportionment work?

EQC has to apportion the damage cost to each event. A High Court decision says the private insurer only becomes liable when the cost for a single “event” exceeds the “cap” – usually $100,000 + GST. EQC remains liable for the entire cost of other below-cap events, even if the total cost of their damage exceeds $100,000 + GST.

Apportionment Factsheet

Apportionment Factsheet cover image.

The Apportionment Factsheet (revised June 2013) explains apportionment and what it means for the settlement of EQC claims for damage to your home.

How is damage apportioned across events?

Apportionment is straightforward if the damage from each event has been assessed. However, in the majority of cases the sequence of events provided insufficient time to complete assessments for each one.

In these cases, damage is apportioned by:

  • comparing damage with neighbouring properties
  • using information provided by the homeowner.

What happens after apportionment?

If the damage for a single event exceeds the cap, the management of the property claims and any repairs is passed to the private insurer.

Once apportionment is decided, your claim will either be referred:

  • to EQC’s Canterbury Home Repair Programme, managed by Fletcher EQR (if all claims are apportioned under the cap), or
  • to your private insurer (if at least one of your claims is apportioned with damage that is over cap).

If you have a mortgage or other financial security on your property and the claim is referred to your private insurer, EQC will pay the settlement amount to your lender. If you do not have a mortgage, EQC will pay the settlement amount to you.

Land damage claims

Land damage claims will also be subject to apportionment. The apportionment process for land damage will be much simpler than for homes.

Find out more

For further information about apportionment or your claim, please phone EQC on 0800 DAMAGE (0800 326 243).

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