When will EQC advise in writing to property owners that their properties have Increased Liquefaction Vulnerability (ILV)? If properties are confirmed ILV, but earthquake repairs have been carried out, what is the property owner expected to do with the land settlement payment? Please clarify how the settlement is calculated?
Asked: 3 June 2014
EQC expects to write to most of the affected customers [regarding qualification] in 2015, and the rest by early 2016. Properties will receive an ILV settlement in accordance with EQC’s ILV Policy. In deciding how to settle such properties, EQC will take into account whether the repair or rebuild included a repair methodology that repaired the ILV land damage. If the ILV land damage was not repaired, it is likely that the settlement will be based on Diminution of Value (DOV), which is the reduction in market value of the property due to ILV land damage.
There will be a two-stage approach to communicating to our customers what EQC’s settlement decision is for their property [qualification, then settlement]. 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. EQC expects to be distributing the full settlement packs for ILV land damage and for any other outstanding land damage throughout 2016.