On 15 August 2019 the Government announced a policy that allows owners of on-sold over-cap properties in Canterbury to apply for an ex gratia Government payment to have their homes repaired.
If you’ve bought a home in Canterbury and discovered that it is damaged over the EQC cap, you may be eligible for an ex gratia payment to cover the cost of repair.
Under the policy, you will have twelve months (no later than 14 August 2020) to register your interest for the ex gratia payment. After that time, the policy will not be available.
If you qualify you may be able to receive an ex gratia payment equal to the agreed cost of repair.
To qualify for the support package, you’ll need to meet the following criteria:
- You have purchased a property in Canterbury after 4 September 2010 (the date of the first 7.1 magnitude Canterbury earthquake) and on or before the announcement of this support package on 15 August 2019; and
- Before selling the property the previous owner settled a claim with EQC on an under-cap basis; and EQC cover depends on how the natural disaster damage occurred.
- Post-sale you have discovered the property has incomplete or insufficient repairs either as a result of defective repair or through damage which had not been properly assessed; and
- The cost of the repair, together with the amounts previously paid by EQC for the property is more than the EQC cap ($100,000 +GST); and
- You are unable to access private insurance to cover the cost of repairs.
This is will be a welcome resolution to many homeowners who found themselves in a seemingly impossible situation of having no recourse to the original insurer of their property due to believing that all necessary earthquake repair work had been completed. However, the fact that this will require agreement with EQC as to the extent and cost of necessary repairs will be cold comfort for some!