Cash payouts starting to be made on increased liquefaction vulnerability
NBR revealed in October it is the first time in the world this type of land damage has been recognised as insured damage.
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Infrastructure
EQC has started settling Christchurch claims for increased liquefaction vulnerability (ILV).
NBR revealed in October last year that it is the first time in the world this type of land damage has been recognised as insured damage.
EQC is not repairing any ILV land damage because there are no available ground improvement methods to address the increase in liquefaction vulnerability but it is settling the claims by a cash payment.
The cash settlement is based on repair cost and/or reduction in the market value of a property, known as a diminution of value (DOV).
EQC’s head of land settlements Keith Land says at least two-thirds of ILV customers are expected to receive settlements based on the reduction in their properties' market value. The others will be settled on the cost to repair the damage.
The commission identified those who qualify through GNS reports, geotechnical drilling and by monitoring the groundwater.
Once a settlement decision has been made for properties, customers will receive a full settlement pack, with detailed information on the amount of payment and what it is based on.
Mr Land says developing the settlement approach for ILV land damage was complex work and has taken time. It involved a High Court declaratory judgment.
He said in October the EQC wanted to make sure it got it right and that homeowners had confidence all properties had been assessed consistently and fairly.
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Sally Lindsay
Fri, 17 Jun 2016
Fri, 17 Jun 2016
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Cash payouts starting to be made on increased liquefaction vulnerability
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