Crombie Lockwood Personal Insurance is a Personal Lines Insurance Facility managed by NZI, a business division of IAG New Zealand Limited. The majority of the following information has been drafted by NZI.
Important Contacts to have on hand
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Crombie Lockwood |
Canterbury Communities' Earthquake Recovery Network (CanCERN) |
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For information about consent forms and the Crown's offer process |
Canterbury Temporary Accommodation Service 0800 67 32 27 www.quakeaccommodation.govt.nz |
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CERA |
Earthquake Commission (EQC) |
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Earthquake Government Helpline |
Healthline (24 hours) |
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Red Cross |
Landcheck |
Click here to read the monthly updates.
Section 1 - New Land Categories
Section 2 - Frequent Questions about Land Remediation
Section 3 - Questions about Rebuilds/Repairs
Section 4 - The CERA ‘Hub'
Section 5 - Deciding how much your house is worth
Section 6 - Questions about insurance repairs vs EQC total loss
Section 7 - Non EQC questions & answers
Section 8 - Orange zone questions & answers
1 - New Land Categories
The Canterbury Earthquake Recovery Minister Gerry Brownlee announced three new categories for residential foundation designs for flat residential green zone land. The three categories are defined as TC1, TC2 and TC3 or grey, yellow and blue. A second announcement re-zoned nearly 80 per cent of the properties in the remaining residential orange zone to green.
What do the land categories mean?
The new TC1, TC2 and TC3 categories are based on how the land is likely to behave during a major earthquake. They specify the different types of foundation work required when repairing or rebuilding homes. To check the technical category of your home visit www.landcheck.org.nz.
In summary, the foundations of properties in TC1 and TC2 can be built according to current guidelines, while properties zoned TC3 will require site-specific geotechnical investigations and new foundation designs. More detailed information about the technical categories is included below.
What does this mean for your claim?
Aside from the Port Hills area (for reasons detailed below), Crombie Lockwood Personal Insurance is continuing to assess all uninhabitable homes regardless of land classification, as well as replanning our repair and rebuild timetable to incorporate the new technical categories.
The insurer is currently working out the effect each classification will have on foundations and other repairs, and what this means for our customers in the green zone. In the case of TC3 properties; after the release of new foundation guidelines by the Department of Building and Housing, they will have a better understanding of how they can go about starting work on these properties. These will follow current testing that will be peer-reviewed, with new guidelines likely to be available in February next year.
To ensure the right level of resource to move forward as soon as they can they are doubling the number of project managers at Hawkins. This means that as the areas they are working in expand, they'll be ready to progress your claim.
TC1, TC 2 or TC3 - what the Technical Categories mean
Technical Category 1 (TC1 or grey)
Future land damage from liquefaction is unlikely. You can use standard foundations for concrete slabs or timber floors. Foundation information is available on the Department of Building and Housing's website at:
www.dbh.govt.nz/canterbury-earthquake-residential-building
Technical Category 2 (TC2 or yellow)
Minor to moderate land damage from liquefaction is possible in future large earthquakes.
You can use standard timber piled foundations for houses with lightweight cladding and roofing, and suspended timber floors or enhanced concrete foundations (i.e. more robust floor slabs that better tie the structure together as outlined in the Department of Building and Housing 2010 Guidance on house repairs and reconstruction following the Canterbury earthquake)
Technical Category 3 (TC3 or blue)
Moderate to significant land damage from liquefaction is possible in future large earthquakes. Site-specific geotechnical investigation and specific engineering foundation design is required.
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2 - Frequently Asked Questions about: LAND REMEDIATION
Following the land announcement, we've compiled the most common questions and answers for your easy reference. Make sure you check the CERA website for up-to-date and detailed information - www.cera.govt.nz
What happens if my property is TC1 or TC2 (grey or yellow)?
Properties classified as either TC1 or TC2 can be repaired or rebuilt using current Department of Building and Housing foundation guidelines.
Land in TC1 or TC2 will require only simple shallow soil strength testing, which is standard for all homes. There is a range of standard options available for the repair and rebuilding of foundations in these areas. At this stage, most repairs and all rebuilds will require consent from the local council before work can be authorised to begin.
What happens if my property is TC3 (blue)?
Property owners in TC3 who need to carry out foundation repairs or house rebuilding will require site-specific geotechnical investigation and specific engineering foundation design.
The Department of Building and Housing is currently undertaking a research trial of foundation systems to test the feasibility and costs of innovative solutions for repairing or rebuilding foundations in Technical Category 3.
This trial is expected to be completed and internationally peer reviewed, with the results made available by end of 2011. Updated guidance for repairing or rebuilding houses and design guidance in Technical Category 3 is then expected to be issued by the end of February 2012.
Until these are available Crombie Lockwood Personal Insurance may not be able to assess those properties with damage deemed over the EQC cap for each event in TC3, as they will not know what repair options are available for foundations on this land.
Who appoints and pays for a geotechnical engineer?
If a geotechnical report is required to progress your claim, Crombie Lockwood Personal Insurance can arrange and pay for this to ensure it meets the specific requirements of your situation.
When will you begin work on TC1 and TC2 properties?
Although there is now more certainty around land classification there are a number of other factors that may affect the timing of progress in these areas. These include GNS information about ongoing seismic activity and the Stronger Canterbury infrastructure reinstatement programme. In both instances they want to be confident that any repairs made are not going to be damaged by either ongoing seismic activity or infrastructure activity, e.g. roads dug up for sewerage pipe repairs. It is also important to note that at this stage, all rebuilds (and most repairs) will need a council consent before Crombie Lockwood Personal Insurance can authorise work to begin. Repairs and rebuilds have commenced in some of these zones where sufficient information is available, and will continue where possible.
Who will pay for the new foundations?
Your home policy (along with EQC) will cover the cost of compliance if the foundations are earthquake damaged and require repair or replacement.
What happens if my property does not have a TC rating?
The usual council consent procedures will apply to your repairs or rebuild. This applies to the properties:
previously announced in the green zone non-residential properties in urban areas in rural areas beyond the extent of land damage mapping in the Port Hills and Banks Peninsula.
If my land has no TC rating and usual consent procedures apply, why is there no progress on my claim?
At this stage Crombie Lockwood Personal Insurance still needs to consider the ongoing seismic activity and anything specific to your property that could require further assessment or information. They are reviewing the seismic risk and its impact on their repair and rebuild schedule on an ongoing basis and will quickly reconsider the position as soon as new information is available. Even though there's no TC rating, it is possible there may be pockets of land damage that will be subject to geo-tech investigations.
When will you assess properties in the Port Hills?
Crombie Lockwood Personal Insurance has recently completed a pilot assessment programme in the Hills to allow a better understanding of what will be needed to reinstate damaged homes in the area, given many are architecturally designed and have unique features. The aim is to have a rebuild and repair timetable issued early in the New Year.
When do you think you'll be assessing the remaining residential green zone properties?
Assessments are continuing on a property-by-property basis. Once the effect the new foundation designs may have on the repair and rebuild schedule they will publish an assessment timetable.
What happens next and when will depend on a number of factors including the status of the land (TC1, TC2 or TC3), the appropriate consents, ongoing seismic activity and land remediation requirements.
Why have these announcements taken so long?
The issues with the land are complex and varied. The Government is now confident they have the best solution for each area, having investigated specific engineering solutions to enable them to confirm appropriate changes in zoning.
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3 - Questions about Rebuilds/Repairs
Here are some of the most common questions we get asked. If you have a specific question, please drop us a note to: info@crombielockwood.co.nz.
Will Crombie Lockwood Personal Insurance agree a mutually suitable start time with me, with no pressure to fit into a wider project schedule?
Yes, within reason. If there were several rebuilds or repairs scheduled in the same residential green zone street or neighbourhood, it would be ideal to have them all under construction at the same time. However, that timing won't always suit, so they'll work with you and endeavour to find a suitable time.
I live in the residential red zone. If I take the Government offer for my land and the Crombie Lockwood Personal Insurance offer for my house repair, will the repair valuation include work to get my house up to the building code as required on that specific date?
If you have a full replacement policy, Crombie Lockwood Personal Insurance has scoped the cost of the repair of the damaged parts of the house to meet building compliance codes, where required. If your policy specifies a sum insured, that sum is the most that will be paid towards the repair of your house.
Does the reinstatement price include building consents or are they separate?
If your house is being repaired or rebuilt, your replacement policy will meet any cost of consents over and above the cost of earthquake damage repair or reinstatement. Your policy will also cover architects', engineers', surveyors' and building consultants' costs as long as they were necessarily and reasonably incurred. If your policy is a sum insured one, that sum is the most that will be paid for reinstating the house, building consents and other fees in total.
Is it OK to rebuild in a different city in New Zealand?
Yes, you can choose to rebuild anywhere in New Zealand. If your policy covers it, Crombie Lockwood Personal Insurance will rebuild you a like-for-like house, using modern materials and methods, on land that you purchase. It won't, however, pay more than would have been paid if the home was rebuilt like-for-like on the original site. Just let Crombie Lockwood Personal Insurance know if you are considering this option and they'll work with you to get the costs established.
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4 - CERA Hub
CERA has established an Earthquake Assistance Centre at the Avondale Golf Club (141 Breezes Road) which is open from 10.00am until 6.30pm Monday to Friday.
Representatives from EQC, Community Law and Temporary Accommodation services as well as all insurance companies are available to help you with any questions or issues you may have including insurance, settlement options, accommodation and finance.
For more information see the CREA website, www.cera.govt.nz.
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5 - Deciding how much your house is worth
Naturally, everyone wants to know how Crombie Lockwood Personal Insurance decides how much a house is worth. If you live in a residential red zone, the settlement offer you receive will give you all the figures. In the meantime, here are answers to some of the common questions you're asking.
Why is it that my neighbour's building rate per square metre (sqm) is different to mine and our houses are similar?
The sqm rate at the top of your assessment summary excludes GST and any extra value items such as heat pumps or wood panelling - this is called the base sqm rate. To calculate the total sqm rate, you should use the final rebuild value at the bottom of your settlement offer. Other insurers may calculate this differently, so if you're comparing with your neighbour, check you're looking at similar rates i.e. is GST included or excluded, is it the base or the total sqm rate? Square meterage rates vary across all homes depending on a number of factors including total size and type of home. If you have any questions, please contact your claims case manager who will be happy to help.
Does floor area mean real ‘floor space' (inside measurements)? Or does floor area mean the footprint (outside measurements)?
The floor area is the outside measurement of the house, including all levels, garaging and developed basement.
What can I do if I don't agree with my assessment?
Crombie Lockwood Personal Insurance is confident that the values accurately reflect market prices. The assessments provided an initial cost, which was then checked with independent quantity surveyors. If they have missed something from your costing, for example, an extra heat pump, or a specified item is different from what's been recorded, please call your us broker to discuss on 0800 666 860, extension 50050.
I am trying to build a new home in a safe area (green zone or rural Canterbury), will you insure me?
When you are building a new home, Crombie Lockwood Personal Insurance recommends you have insurance for the construction stage (this is called Contract Works insurance) and then take out home insurance once the building is complete. If Crombie Lockwood Personal Insurance has authorised the rebuild they will provide contract works cover as part of managing your claim.
The current position is that home insurance can be approved once the code of compliance certificate has been issued and you are ready to move in. If you are thinking about building or buying a new home, you are strongly encouraged to contact your Crombie Lockwood broker before entering any contractual agreements so they can work with you through this process.
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6 - Questions about repairs
EQC says my house is a total loss, but you say it's a repair. How does this work?
EQC call their claims a total loss if the damage to your home is more than the cover it provides which is usually $100,000 +GST. If Crombie Lockwood Personal Insurance has deemed that your house is repairable this does not mean they disagree, it just means it is economic to repair your house.
I live in the red zone and my house has been deemed a repair. I don't understand how it can it be?
Crombie Lockwood Personal Insurance insures your house and other structures while your land is insured by EQC. Crombie Lockwood Personal Insurance has completed detailed assessments of all residential red zone customers' properties based on what would be done to reinstate the house, fences and driveways, had the Government remediated the land. In doing so, they have factored in all costs that would be incurred to get it a building consent. Based on these total costs Crombie Lockwood Personal Insurance were able to determine whether your house was economic to repair and therefore be deemed a rebuild or repair. The Government has signalled there is no immediate intention to remediate the land in the residential red zone. Working together with EQC and the government Crombie Lockwood Personal Insurance identified this would be an issue for people with repairable properties, which is why the government developed Option 1. Option 1 is a cash settlement for both land and house based on the most recent rateable value of your property.
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7 - Non EQC questions & answers
What does non-EQC mean?
If your claim is deemed non-EQC this means that you have damage to parts of your property that are not insured by EQC, but are covered by your policy with us.
You will need to lodge a claim with us for damage to these parts of your property.
What does NZI cover? What does EQC cover?
The following property damage is not covered by EQC, but may be covered by your home policy with us:
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Drives, paths, fences and bridges
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Drains, channels, tunnels and cuttings unless used to connect parts of one or more residential buildings
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External swimming and spa pools
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Paving and other permanent artificial surfaces.
What happens once your ‘non-EQC' claim is lodged with us?
Once we are ready to commence work on your property we will contact you to arrange payment of any policy excess (if applicable). On receipt of any excess payment required, we will refer your claim to one of our Hawkins project managers who will arrange to visit your home and assess the damage. You may also be visited by specialist engineers and tradespeople to assist with estimating the full extent of the damage.
What happens after the assessment is complete?
We will contact you to discuss the options available to you. If there is more than one option available, then you choose which option you would like to proceed with.
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8 - Orange zone questions & answers
Will NZI assess homes in the orange zone?
Until we have certainty over your land zoning we will not be able to complete a detailed assessment of your home, unless it is uninhabitable. In this instance, it is likely that your home will be on our priority assessment list. We will continue to work closely with CERA to understand land decisions and progress our customers' claims.
Can NZI proceed with repairs or rebuilding work on my house on my existing land?
No, until the Government determines the final zoning of your land we will not be carrying out any repairs/rebuilds on homes in the orange zone.
When will I hear about my land?
We've been advised by CERA that rezoning the remaining 908 orange zone properties is their highest priority along with the white zone properties in the Port Hills.