The following Q&As outline the requirements and process for requesting a claim review.
Requesting a review
1. What information do I need to provide?
You will need to provide supporting information such as photos, professional reports and contractors quotes.
2. What are my responsibilities when submitting my request for a claim review?
You are confirming that the information you submit is true and accurate and you have not withheld material information. You are also confirming that if, in the future, you become aware that the information you provided is no longer accurate, or you have new information, you will advise EQC as soon as possible.
3. What will EQC do with the information I provide?
We will use your information to decide whether we will review your claim. We will look at your Claim Review Form, taking the additional information into consideration. This will result in us either confirming our original decision or deciding to review the claim further.
This is the process:
- You submit your completed Claim Review Form and supporting information.
- We review the Claim Review Form and supporting information, together with information we already hold.
- We determine whether a more detailed review of your claim is appropriate.
- We let you know if a more detailed review of your claim is appropriate.
- We conduct the review.
- We may carry out a site visit and would contact you to arrange this.
- We will finalise the review of your claim and advise you of the outcome.
4. Why might EQC determine you have no further entitlement?
Some examples of where EQC may determine that you have no further entitlement under the EQC Act:
- If we determine that all earthquake damage has already been assessed and settled according to the EQC Act.
- If we determine the works you have asked us to review have been completed to the standards required by the EQC Act.
- If the works you have asked us to review were cash settled and completed by a contractor that you or a previous owner privately instructed (the repairs were not completed by EQC or anyone contracted by EQC).
- If you are bringing earthquake damage to our attention that is not related to the claim you are asking us to review. For example, the earthquake damage is related to the Kaikoura event but you are asking us to consider damage caused by a Canterbury event. If the earthquake damage is related to a different earthquake event or natural disaster, you generally needed to have made a separate EQC claim within the three month claim period for that event (a new claim must be lodged for each natural disaster event).
5. If my claim review changes my settlement, will my excess change?
Possibly. If we are rectifying work already completed as part of the Canterbury Home Repair Programme (CHRP) this will not change your excess amount. However, if our review determines that new and/or additional work is required we may need to recalculate our settlement and this may change your excess amount. We will adjust the payment to include any change in the excess.
6. I have bought the property since the earthquakes. What do I need to do if there are issues with the house?
The owner of the property at the time of the earthquakes may have agreed to assign (or transfer) all or part of their EQC claim entitlement to you (or a previous owner). EQC needs to have been advised of the assignment and supplied with relevant clear written documentation recording the assignment.
In these circumstances, the person receiving the benefit of all or part of the claim (i.e. you, the purchaser) will receive any remaining entitlement under the EQC Act. You will receive any assigned entitlement up to EQC’s cap for an event.
However, where a related private insurance claim has also been assigned to you, you may not have the same private insurance entitlement as the original owner, or any entitlement from the private insurer at all. You will need to seek further advice regarding the private insurance situation.
For further information on the transfer of an EQC claim, please visit our website: www.eqc.govt.nz/transferring-claim
Explaining the issue(s)
7. What are workmanship issues?
Workmanship issues refers to repair work that was carried out by a contractor which does not meet EQC’s obligations under the EQC Act.
If the repair work was carried out by a contractor that was not engaged by EQC, then this is not a matter for EQC.
8. What is the standard required by the EQC Act?
EQC is required to meet the “replacement value” standard prescribed in the EQC Act. This definition of “replacement value” includes the cost “reasonably incurred” in “replacing or reinstating the building to a condition substantially the same but not better or more extensive than its condition when new” modified as necessary to comply with any applicable laws.
9. What is missed damage?
Missed damage is earthquake damage that was not identified when your property was assessed and as such did not form part of the scope of works.
10. What is a repair strategy?
With every claim, regardless of how it is to be settled, EQC identifies a strategy that it considers will repair the earthquake damage in accordance with its obligations under the EQC Act - to replace or reinstate the building to a condition substantially the same but not better or more extensive than its condition when new
11. What should my description include?
You need to provide details of your concerns about the settlement, including a detailed description of the issues, where the damage is, how it was identified and photos and measurements where possible.
If you are unable take measurements or photos because the relevant part of the house is inaccessible, note that in your description.
12. What is helpful to include in the photos?
Take photos that show a close-up view of the issue you believe you have identified. Ensure the photos are as clear as possible.
Take photos of the aspect of the issue from further back as well, as this can help to put it into perspective.
If possible, draw a line on the photo around the area you are concerned about.
Name the photo file with the name of the part of the house in the photo, such as bedroom or kitchen (or write this on the back of the photos if you are sending us physical copies).
13. What should a contractor’s quote or report include?
Any quote or report you submit to us must be an independent quotation from a qualified professional. You will pay for the quote or report and EQC will reimburse you the fair and reasonable costs of the report if the claim is accepted. It must:
- be printed on the qualified professional’s letterhead
- include the qualified professional’s GST number
- include details of the location and extent of the earthquake damage
- include a room-by-room breakdown of repair costs, including the cost per square metre of each repair strategy, and the measurements of the earthquake damaged areas.
If the nature of your request is very minor, and you believe it does not warrant a quote or report, please discuss with your settlement specialist/claims manager.
14. Do I need an engineer’s report?
If your request is related to damage to structural elements of your home, it may not be necessary to provide a structural engineer’s report at this point, but you can choose to do so.
If EQC decides the previous settlement is appropriate, but you don’t accept that decision, then it will be up to you to obtain further information and / or expert reports. This could include a report from a structural engineer, to support your position.
If you decide to engage an engineer, it’s important you choose one who is suitably qualified with experience assessing houses for earthquake damage.
You’ll find information about obtaining expert reports on the EQC website at www.eqc.govt.nz/expert-report-factsheet
15. Will EQC reimburse me for an engineer’s report of a contractor’s assessment or report?
EQC may reimburse you for the fair and reasonable cost of an engineer’s report or a contractor’s assessment, or a report you have commissioned if the costs are fair and reasonable and:
- EQC accepts that the report or assessment:
- uncovers legitimate natural disaster damage that EQC did not identify during the assessment of your property and/or
- identifies managed repair work under the Canterbury Home Repair Programme (CHRP) which does not meet the standard required under the Act and/or
- EQC agrees with the repair strategy and/or the further earthquake repair works recommended.
It’s important to note that reimbursement of such costs is not guaranteed. EQC will determine whether to reimburse you for the cost of a report or quote based on the specific facts of your claim review.
16. Will an EQC assessor need to visit my property?
We will review the detailed information you have provided on your Claim Review Form and supporting documents, together with the relevant information we hold about your EQC claim. We may need to visit your property if we need more information. If so, we will contact you to arrange this.
17. When might EQC use an engineer or other expert?
If EQC decides to review your claim, then we will consider whether engineering or other expert advice is required to complete the review. If we decide that advice is required from an engineer or other expert, we will engage the expert at our expense.
18. What if the repair work costs more than the payment received from EQC?
Your settlement is based on the quote you have provided to EQC from your contractor.
Settlement of your claim
19. How will EQC settle my claim?
Once you have provided all the required information, EQC will review to determine the extent of any additional liability relating to earthquake damage and that the scope of costs are fair and reasonable.
If the work is non-structural, EQC will confirm in writing that you can go ahead with repairs. When the repairs have been completed and the required supporting evidence has been provided, EQC will pay you (or the mortgagee) within 7 working days.
If the work is structural, EQC will work with you to determine a suitable settlement pathway.
If further earthquake related damage is discovered at a later date you can contact EQC by calling 0800 DAMAGE (0800 326 243) between 7am-9pm, Monday to Friday, or 9am-5pm Saturdays or by emailing info@eqc.govt.nz
20. How will EQC pay me?
If there is a mortgage registered against the title of your property, we may be required to pay the settlement to the bank or lending institution that holds the mortgage. If you do not have a mortgage, and do not have a joint bank account, we will need written agreement from all the legal owners of the property as to where payment can be made to.
If we have bank account details on file, we will need them confirmed so we can pay any cash settlement by direct credit. You can do this on the Claim Review Form or over the phone.
In addition to providing your account details in the Claim Review Form, you need to provide a pre-printed bank deposit slip, screen shot of electronic bank account details or a letter from your bank identifying your bank account number. We can accept these electronically if they are scanned and emailed to us. You will need to give us your claim number at the same time.
Available support
21. How do I choose a contractor to undertake works?
If you are unsure how to find a contractor, you could visit the websites listed below:
22. Who else can help?
Greater Christchurch Claims Resolution Service (GCCRS) provides free, impartial advice to residential property owners. Call GCCRS on 0508 624 327.
Homeowners may choose a customer representative to assist them to get their natural disaster damage assessed, or to liaise with EQC on their behalf.
EQC has worked with customer representatives to develop a Shared Statement of Expectations that helps give clarity around how customers, their representatives and EQC will work together.
The Shared Statement of Expectations brings consistency to how EQC and customer representatives work together to complete claims fairly and efficiently for our customers. It sets out the roles and responsibilities of homeowners, EQC and customer representatives, as well as agreed timelines, so everyone knows what to expect. It reflects and reiterates our EQC Customer Code - our commitment to ensuring all our customer interactions are clear, fair, honest and transparent.
