Liz McDonald at The Press reports:
Canterbury’s two biggest insurance companies say they will not pay for damaged homes to be rebuilt or pay accommodation and some other costs for owners of homes sold since the earthquake.
This clearly highlights the importance of being well informed prior to confirming any such purchase – know exactly what the owner’s insurance company will undertake on your behalf as the purchaser. In general most homes with significant damage have not been sold due many unknown quantities and the extent of the damage. Many homeowners are still waiting on final assessments and are unsure if their home will ultimately be deemed a rebuild.
Here’s a brief checklist of precautions to take:
- Know what you are buying – what is the extent of the damage.
- If the property has been deemed “over cap” by EQC be extra cautious.
- Don’t be frightened to request a comprehensive engineer’s report.
- Always include a suitable insurance clause in the sale and purchase agreement and if need be also include a clause subject to the insurer confirming your entitlement as a purchaser.
- Always seek legal advice.
- Know the status of the claim(s) i.e. have all or any of the EQC and insurance claims been settled.
- Never assume anything – remember to assume makes and ass of you and me!
- If in doubt, don’t proceed.
I trust this will assist as you navigate a way forward with your next property transaction and be reassured that by taking the necessary precautions, you can minimise the risk and make well informed, clear decisions.
Now for some good news – it is evident that the rebuild is ramping up with noticeably more homes undergoing repairs, the geotechnical engineers out in force and tradespeople are busy at work on many properties in the community – and we’re even going to be treated to an implosion early next month!