You are here

Next steps for settling ILV land damage

EQC expects to begin informing homeowners from the end of October whether their property has the type of land damage known as Increased Liquefaction Vulnerability (ILV). This is the first time in the world this type of land damage has been recognised as insured damage.

The EQC Head of Canterbury Land, Keith Land, says there will be a two-stage approach to communicating what the EQC’s ILV settlement decision is for a customer’s property. This reflects feedback received from customers, who wanted to hear from EQC as soon as relevant information about their properties became available.

“Customers will first find out whether their property qualifies for a settlement for ILV land damage as the qualification assessments for all potential properties are close to being finished. We expect this stage will be completed by early 2016.

“Once a settlement decision has been made for properties that qualify, customers will then receive a full settlement pack, with detailed information on the amount of payment and what it is based on.”

Mr Land says EQC expects to be distributing the full settlement packs for ILV land damage and for any other outstanding land damage throughout 2016. The most difficult group of settlements to work through for EQC will be the properties that have suffered both ILV and Increased Flooding Vulnerability (IFV).

“We recognise that our customers have been waiting for a long time for ILV settlements to begin. Developing our settlement approach for ILV land damage is complex work and has taken time. We want to make sure we get it right and that homeowners have confidence all properties have been assessed consistently and fairly, says Mr Land.

Critical to the timing of the first qualification packs being sent to customers is the finalisation of the ILV policy which will outline the way that EQC approaches the assessment of ILV land damage and how it settles claims.

Mr Land says EQC is working hard to ensure homeowners get quality information to help them understand EQC’s qualification decision. This was a key learning from the settlements of IFV properties that EQC have started early this year.

“We are also regularly checking in with the Customer Advocates Group on the best way of communicating with our customers.”

EQC will be inviting affected homeowners to a series of community meetings across the city towards the end of the year and early next year. Mr Land says the meetings will give homeowners the opportunity to hear directly from EQC and its engineering advisors Tonkin + Taylor.

“We want to make sure people get a good understanding of what‘s been involved in making the qualification decision for their property and what to expect next”, says Mr Land.

For more information on ILV land damage visit the EQC website at


Settlements of ILV land damage

EQC will not be repairing any ILV land damage but will settle the damage by cash payment. This is consistent with how EQC has settled claims for other types of land damage caused by the Canterbury earthquakes.

EQC expects the cash settlement for ILV land damage to be based on repair cost and/or market reduction in the value of a property, known as Diminution of Value (DOV).

Once the ILV policy is finalised more information will be available on how EQC will determine which settlement option will be used for what property.

Page last updated: