EQC Cover for Land
Dr Duncan Webb, Lane Neave
26 June 2017
If you are in any doubt about your claim it is recommended you seek legal advice.
The “Land Holding”
underneath the building
within 8 metres of the building
the land holding—
the main access way (within 60 Metres)
bridges and culverts
all retaining walls and their support systems (within 60 metres and necessary for the support or protection of the building or land)
Adverse change affecting usability
EQC categories (as per Cam Preston’s presentation)
Adverse chance - exacerbation (flooding liquefaction)
pre existing vulnerability (some mass land movement)
risk from adjacent land (Kraal)
change to drains rivers (EQC Flooding Case)
Amount of land insurance
The value of the damage up to the value of the insured land
Not all land is insured
For retaining walls , bridges & culverts - indemnity value.
Loss of value where repair unlikely due to:
No intention to repair;
Disproportionate or unreasonable to repair.
Value of land lost where total loss.
Indemnity value where no actual repair.
Land damage vs. building damage
Work “on the building” such as raising it above flood levels is building remediation and not land remediation (EQC Flooding Case).
Building damage requires a:
change to the physical state or integrity of the structure or materials that comprise the body of the house erected on the land including its foundations (EQC Flooding Case)
No damage simply due to building subsiding with land (that is land damage)
“Punching” into land problematic
The EQC land claim assignment problem
What is building damage / what is land damage
Insurer insured the house on the land as it was pre earthquake
If there is a land payment it may relate to land other than that under foundations
If the site is damaged the insurer can require the owner to provide an undamaged site to build on
The insurer is obliged to repair the house to modern
legal requirements (e.g. Code compliant)
Some land payments are likely to be very small
Insurer’s offering cash settlements often require assignment of land payments where enhanced foundations required
EQC tortuously slow
Land payments very modest in general
EQC difficult to deal with
Land information is technical
EQC constrains itself by internal policies
Provide your own information (or other information e.g. CCC)
Get all of EQC’s information
Potential to revisit EQC payments - especially if land repairs actually undertaken
Do not be overwhelmed by technical information
Your own experts may be useful (but expensive)
Be clear on your own positon (repair / retreat / ignore).
Be alert to any payments based on valuations.