ILV land damage cash settlement calculation

I have received a letter from EQC stating that my house has received ILV land damage and I’ll be made a cash settlement offer in 2016. I would like to know how this is being calculated and when it will be available.

Asked: 31 October 2015

Category: Cash Settlements, Land claim

Answers

EQC

7 December 2015

EQC advises:

There will be a two-stage approach to communicating to our customers what EQC’s settlement decision is for their property. 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 throughout 2016.

Settlements for Increased Liquefaction Vulnerability land damage will be made by cash payment. EQC will not itself be repairing any Increased Liquefaction Vulnerability land damage. This is consistent with how EQC has settled claims for other types of land damage caused by the Canterbury earthquakes.

When EQC settles Increased Liquefaction Vulnerability land damage, it will assess the customer’s loss in one of two ways - either:

  • the amount it would cost to repair the Increased Liquefaction Vulnerability land damage to the land under and immediately around the house (the repair cost), together with any loss of market value of the rest of the insured land as a result of Increased Liquefaction Vulnerability. In other words, this settlement amount would be based on a combination of repair cost and Diminution of Value (DOV); or
  • the loss of market value of the insured land (and the relevant associated residential buildings) as a result of the Increased Liquefaction Vulnerability land damage. This settlement amount would be based solely on DOV.

All settlement amounts are subject to the land cap set out in section 19 of the Earthquake Commission Act 1993. The EQC land cover cap is generally the value of the area of damaged land or the value of a parcel of land that is the minimum lot size under the relevant District Plan, whichever is smaller.


For more information see the Qs&As about ILV on the EQC webste:
http://www.eqc.govt.nz/canterbury-earthquakes/land-claims/flat-land/increased-risk-of-liquefaction/ilv-q-as

EQC is holding community meetings about ILV. For more information about these meetings see the EQC website:
http://www.eqc.govt.nz/canterbury-earthquakes/land-claims/flat-land/increased-risk-of-liquefaction/ilv-community-meetings

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