If IFV and ILV is settled for diminution of value (DoV) why would an insurer seek a deed of assignment (DOA) passing all future EQC land payments to the insurer prior to a rebuild?
If you have already signed a DOA for all future EQC land payments before there was an awareness that EQC would settle land based on DoV (ILV, IFV) would the compensation / loss of value settlement be included in the DOA?
Asked: 13 August 2014
Any EQC funds you receive for damaged land that are not required as part of the home remediation are returned to the customer.
There are two reasons. The first is to make sure customers are not over-compensated. If EQC pays you for the DOV your property has suffered as a result of IFV or ILV, and Lumley has paid for works which overcome the effect of the IFV or ILV, then you will have been over-compensated for your loss. Obtaining a DOA overcomes that as the EQC payment is made to Lumley. If the EQC payment is more than what Lumley has spent on overcoming the IFV or ILV problems, Lumley then repays you the difference.
The second reason is to make sure EQC pays the right amount. Lumley is able to make sure for the benefit of its customers that EQC is applying the right tests to IFV and ILV and the DOV calculation. Lumley is looking carefully at how EQC is deciding which properties have suffered IFV or ILV damage and the amount EQC is offering. Lumley is doing that work at no cost to its customers but the benefits will flow back to customers.
Yes. The DOA applies to all amounts paid by EQC.