Have you suffered damage or loss of property as a result of the devastating Christchurch earthquakes?
While some insurance claims have been successfully settled, many homeowners are still in dispute with their insurance company over the extent of damage, the time of damage, whether the building needs replacement or repair...

EQC
The EQC is the first port of call for homeowners in the first instance.
EQC will arrange for an assessor to visit the property.
You should also notify your insurer, and provide EQC with your policy number.
It’s important you record all dates and outcomes of visits, and also follow up by email with a record of what was discussed.
The Assessor, through a preliminary report and then a more detailed report, outlines the amount of money it will cost to fix or replace, and passes this report on to your insurance company.
EQC automatically pays out the first $100,000+GST of home insurance and the first $20,000+GST of contents insurance.

Discussions with your insurer
Following the EQC report and/or EQC payout, the insurance company will discuss with you how to proceed with the full amount of your claim.
This depends on the type of insurance you hold, and each policy tends to be unique.  

In general, there are three types of house insurance:
- 1) Indemnity Value: this is the value of the property at the time of damage.  This is probably a lower amount than replacement cost as it is designed to put you back in exactly the same financial position as you were before the event that caused the damage.  Essentially, it is the second-hand value taking into account depreciation, age and condition immediately before the event.
- 2) Replacement Cover with a sum insured limit: This is the cost to rebuild or repair the house to an as-new condition.  BUT note that if you settle for a cash settlement and the insurer does not repair or replace themselves, you will often only receive the indemnity value (which tends to be lower).   There will be a capped amount in your insurance policy for the cost of repair/rebuild, and  you will have to pay any amount in excess of this.
- 3) Replacement Cover without a sum insured limit: This is essentially the same as the above, but there is no cap.  The amount is instead based on a ’per square metre’ rate, so you must ensure that your insurance policy fully sets out the exact size of your property.

Dispute
As you can anticipate, there are many disputes which can arise, such as the cause of the damage, whether as a homeowner you fully disclosed everything and/or took all practicable steps to protect the property and the amount of the sum owed to you.

All insurance companies obtain legal professionals to represent them, so if you want to challenge their decision, then it is vital you obtain the services of a professional legal adviser.  Parlane Law has successfully acted for many Christchurch homeowners and has obtained a successful outcome for them.

Angela Parlane can offer a unique insight into handling insurance claims.   She has previously been legal counsel for an insurance company, and is in a position to pass on that experience and advice to you.