When a natural disaster has damaged your property, you may have filed an Earthquake Commission (EQC) claim. EQC is a government agency that provides insurance for residential property owners (contents, dwellings and some coverage of land). It covers environmental damage caused by earthquakes, landslips, volcanic eruption, tsunamis, and geothermal activity.
For more information about EQC and the claims process visit the EQC website.
If you have filed an EQC claim, there are some things to consider before and during the sale process, depending on your situation.
Your claim has been paid out and work completed
If the repairs have been completed, EQC recommends that any outstanding EQC/insurance claims are assigned to the buyer if possible. This will help the buyer if the repairs are later found to be inadequate or if they want to obtain information about past claims.
Any guarantees or warranties offered by the builder who carried out the repairs should also be transferred to the new owner.
Speak to your insurance company and your lawyer about this.
Cash settlement received and no work completed
A buyer is likely to want to know if a cash settlement has been received but no repair works completed. The buyer may want information on what claims have been settled, and what claims, if any, can still be made on the property or land.
Read the 'Selling ‘as is, where is’ section below for more information about selling this way.
We recommend you seek legal advice about your obligations where a claim has been paid, but the repair work has not been done.
Transferring an existing claim
Transferring an existing claim to the buyer may be possible. Your insurance company and your lawyer can help you with this.
Visit the EQC website(external link) for more information about transferring a claim.
EQC claims and the claim process can be complex and lengthy. Your lawyer and your insurer will be able to help you. It’s important to consult with experts because there are proposed changes to the EQC claim process that may impact the sale of your home.