deed of assignment of eqc claim

About natural hazards cover

Find out how to make a natural hazards cover claim, what's covered, and how much you're covered for.

Storm, flood, and landslide damage

After severe weather events we can contribute to the cost of cleaning up your land as a part of your settlement.

Learn about making a new claim, the claims process, and what to do when buying or selling a home with previous claims, including asking us for claim information

Our partnership with insurers

We work with most private insurers to simplify the process for making a claim for natural hazard damage.

Making urgent repairs

If your home has been damaged you may need to carry out urgent repairs to make your home safe.

Section notices

If certain section notices appear on a property title this can affect natural hazards cover and the outcome of any claims.

Canterbury earthquakes

We’re working hard to resolve outstanding Canterbury claims so no one continues to live in earthquake damaged homes.

Projects on the go

Data and modelling

Major data and loss modelling projects

Risk reduction and resilience

How we work to reduce risk and build resilience

Creating an Aotearoa New Zealand that is better informed about our natural hazards and more prepared for their impacts.

Making your home safer for natural hazards

Home buyers

Features to look for in a property

Building and renovating

Make your investment last

Apartments and shared property

What to think about and how to prepare

Ways to make your rental home safer

Natural hazards where you live

Know what hazards could affect the area you live in

Ways to protect your investment

Useful information to help you prepare

We exist to reduce the impact on people and property when natural hazard events occur.

New Zealand has a history of natural hazard events that has shaped our organisation’s history, and our name.

Get to know our Minister, Board of Commissioners, and Executive Leadership team.

How we work

At NHC Toka Tū Ake we have rules, policies, and ways of working that guide what we do.

Buying or selling a home with previous claims

When buying or selling a home that has been affected by a natural disaster, there are some extra steps that you should consider. Learn how to make informed decisions, request claim information, transfer the benefit of a claim, and complete a Deed of Assignment.

Make informed decisions when buying a home

If you’re considering buying a home that has been affected by a natural disaster it’s important to take steps to find out about the condition of the home you’re going to purchase and to identify risks and issues.

Talk to your lawyer, bank, and insurer

Seek advice from a lawyer or conveyancer to make sure you get all the information you need to make an informed decision. They will be able to help you identify and understand any risks. You should also discuss your plans to purchase the property with your bank and your insurer.

What to ask the real estate agent or seller

You can request documents from the agent or seller about the property such as the:

• record of title
• LIM report (Land information memorandum)
• property file from the Council.

Ask for any information about insurance or claims for natural disaster damage to the property. These can be given to the licenced building practitioner who is undertaking your pre-purchase inspection.

This could include information such as:

• any reports they have obtained
• receipts and consenting documents for any repairs that have been done.

Asking the seller or their agent the following questions can help you understand the history of natural hazard damage to the property:

• Is there an existing EQCover or NHCover claim on the property?
• Did the previous homeowner use their settlement funds to complete the agreed repairs?
• Are there any quality issues with repairs, or any missed damage still needing to be repaired?
• Is there any pre-existing damage to the property that is not related to a natural disaster?

Check the Natural Hazard Portal claims map

The Natural Hazard Portal claims map shows all settled EQCover and NHCover claims on properties in New Zealand from 1977 onwards. This information is freely available. The map will show you whether a claim has been settled, and what type of claim it was.

Get a pre-purchase inspection

Hire a licensed building practitioner to do a pre-purchase property inspection. A pre-purchase inspection is broad in scope and often begins with a builder's report. A building inspection can reveal potential issues or risks, and suggest what additional investigation might be needed, such as structural or geotechnical engineering reports.

An inspection might also include reports from engineers, surveyors, electricians, plumbers and other specialists. These reports can help explain the general condition of the property and identify any other potential issues.

Pre-purchase inspection reports can also help identify potential issues such as:

• Additions or alterations to the original consented buildings, which can be compared with the Council file and LIM report to check for any unconsented/permitted works.
• A lack of building maintenance that may lead to future issues and costly repairs.
• Work that may be necessary to bring a home up to the standard required to obtain finance or insurance for the property, for example, re-wiring or re-plumbing.
• Any safety concerns, for example, unsafe works or hazardous materials.
• Historical issues, for example, settlement and subsidence, construction issues, and defects such as weathertightness.

Home buyers should ask an accredited property inspector to produce a pre-purchase building inspection, and not rely on any pre-purchase report provided by the seller.

NHC assessments (formerly called an EQC assessment)

An NHC assessment (formerly called an EQC assessment) is not a substitute for a pre-purchase inspection and shouldn’t be relied on when doing due diligence on a property.

The purpose of an this assessment is to record the damage to an insured residential building, following a natural hazard event. This assessment is then used to create a scope of works, which sets out the strategy for repairing the damage, and the costs of those repairs.

If a scope of works was used to settle an natural hazards cover claim it can be helpful to cross-check it with a building inspection check sheet.

Section notices on the record of title

You should ask for legal advice if there are any section notices on the property’s record of title. There are two main section notices that homeowners or homebuyers should be aware of.

Section 72 

A section 72 notice on a property’s record of title may result in us fully or partly declining your claim. This notice can be placed on a property that is known to be affected by or at risk of a natural hazard. It is intended to make anyone with an interest in the property (such as potential buyers, banks, lenders and insurers) aware of the risk, as well as specifying what that hazard is.

If a claim is made for damage caused by the same type of hazard (or hazards) that is specified on the notice, Natural Hazards Commission Toka Tū Ake have the right to fully or partly decline that claim.

These notices can also be called section 36(2) if applied under the Building Act 1991, or section 641a if applied under the Local Government Act 1974.

If a property has any one of these notices on the title you should:

• Check the LIM report or talk to the local council to find out about the nature of the specified hazard(s) and what this might mean for you as a homeowner.
• Consider the risk of damage to the property in the future, as well as how the notification may impact on your insurance cover (including EQCover or NHCover).
• Talk to your insurer.

Section 28 or 51

A section 28 or 51 notice appears on property’s record of title in specific situations when NHC Toka Tū Ake has limited or cancelled natural hazards cover after cash settling a claim. This usually happens when there is significant damage to a property, and the homeowner has not taken steps towards making repairs, within a reasonable timeframe.

Read more about section notices and how they affect natural hazards cover. 

Request claim information

It’s important to know whether a home you’re buying or selling has had previous natural disaster damage, and whether this has been properly repaired. Anyone can request claim information on a property from us.

Requests for claim information on a property are considered an official information request and can take up to 20 working days. You can make a request for claim information using our online form.

Learn more about requesting information including how long it might take, and the types of information we can provide on our Request information page. 

Sellers or their agents can request claim information

Potential buyers will want to see any documents you can provide relating to any previous natural hazard cover claims, including the damage that was assessed and the status of any repairs.

Request these documents from us before putting your home on the market so they are available for prospective buyers. Your lawyer or real estate agent can also make this request for this information on your behalf.

Buyers can request claim information

If you are considering buying a home, it’s very important to ask the seller or the real estate agent if it has had any previous natural disaster damage. You can ask for copies of the documents that relate to the damage that was assessed and the status of the repairs. This is an important part of your due diligence when purchasing a home in an area that has been impacted by natural hazards.

If the seller is unable to provide the correct documents, you can make a request for claim information from us. Your lawyer or real estate agent can also make this request for information on your behalf.

Assignment of claims

When buying or selling a property that has an EQCover or NHCover claim, the claim can be transferred to the new homeowner. Once a claim is transferred, the new homeowner will have the same rights and benefits as the previous owner. The rights and benefits of the claim refers to any remaining settlement for natural disaster damage to the buildings and land that are covered by us.

This process is called an assignment of claim, and is commonly done using a document called Deed of Assignment. Other situations such as change in a relationship, or the homeowner passing away may also result in a requirement to transfer the rights of a claim.

Exactly what is assigned to the new homeowner will depend on what is outlined in the Deed of Assignment and any relevant provisions in the private insurance policy.

When a property is sold without claims being assigned to the new owner, any rights and benefits of that claim remain with the previous owner of the property. If a property is sold multiple times without assigning the claim to the new owner, the transfer of claims must start from the original owner, pass through each subsequent owner, until it is transferred to the current homeowner.

Properties with settled claims

When a property has a settled EQCover or NHCover claim, the rights and benefits of that claim should be transferred to the new homeowner.

Homebuyers should find out whether repairs associated with a settled claim have been completed. Any funds already settled to a previous homeowner will remain with the previous owner, unless they are transferred to the new owner as a part of the sale and purchase contract.

If any previous homeowner failed to use their settlement funds to complete the repairs, the new homeowner won’t be entitled to any additional settlement from EQC for that damage.

A homeowner might reopen a settled claim on a property if:

• additional natural hazard damage that was missed in the original claim is discovered, 
• repairs managed by NHC Toka Tū Ake did not meet statutory replacement standards (only for Canterbury claims that had managed repair).

To re-open a previously settled claim following a property sale, the new homeowner will need to provide expert reports relevant to the claimed damage that they received after they purchased the property.

Properties with unsettled claims

When buying or selling a property with an unsettled EQCover or NHCover claim, the rights and benefits of the claim should be transferred to the new homeowner.

It is important to note that just because a claim has been lodged, there is no guarantee that we will accept the claim. Sometimes issues with the claim aren’t identified until after the claim is lodged. Because of this, we strongly recommend you seek legal advice when purchasing a property with an unsettled EQCover or NHCover claim.

As with all claims, there is a maximum amount that we can pay. The cost of fixing the natural disaster damage might exceed the limits of our natural hazards insurance cover.

The seller should contact their insurer to find out what, if any, insurance entitlement the new homeowner might receive. If the private insurance claim can also be assigned to the new homeowners, they may not have the same entitlement as the original owner, or any entitlement from the private insurer at all.

The buyer should confirm there is no missed damage – and where there is, address this with the seller (using their private insurance policy coverage if relevant) before the sale. If repairs have not been completed, the buyer may be unable to get private house insurance, or NHCover for future natural disasters.

The excess is paid by the homeowner

All natural hazard insurance claims are subject to excess. This is taken out of the settlement amount that is paid to the homeowner for their claim. Any agreement in the Deed of Assignment on who will pay any excess will not change who NHC Toka Tū Ake invoices.

How to assign a claim

Both the seller and the buyer should seek advice from a lawyer about assigning claims, and talk to their insurer. Insurance companies might have different requirements for what documents are required.

The documents usually used to assign a claim are either a:

• clause in the sale and purchase agreement
• document called a Deed of Assignment (DOA).

Information required for a Deed of Assignment (DOA)

The most common document used to assign an EQCover or NHCover claim to the new homeowner is a Deed of Assignment (DOA).

A DOA should include the:

• address of the property being sold
• date of the DOA
• date that the DOA takes effect
• full names of all the current owners(s) and new owner(s)
• contact details of the purchaser
• signatures of all assignors and assignees which must be witnessed
• claim numbers.

There is often more than one claim associated with a property. If all claims are being assigned, please list them all. If only certain claims are being transferred, then please only list those.

When a party is a company, the Deed of Assignment must be signed in accordance with the relevant legal requirements.

Optional clauses

It can be useful to include a clause in your Deed of Assignment requiring the seller to assist in the completion of a claim. We encourage you to discuss this with your lawyer.

Information on settled EQCover or NHCover claims is not included when assigning a claim to the new owner. If the buyer wants to receive information on settled claims when they purchase the property, the seller can agree to this information being shared. A clause can be added to the DOA stating this.

Variation in names

If the name of the original claimant and the name on the insurance policy are different, the reason for this must be recorded on the DOA. For example, if the original claimants owned the property under a trust and insured the property in the name of the trust, the Deed of Assignment should record this fact to avoid confusion.

Common terms used in a DOA

Vendor – the person(s) who owns and is selling the property. Purchaser – the person(s) who is buying the property.

Assignor – The person who is transferring their rights to the claim. Usually this is just the property owner(s), but in some situations there are other people with an insurable interest in the claim who need to give their approval of the transfer. Assignee – The person who is receiving the rights of the claim.

Original claimant – the person who lodged the claim.

Where to send DOA documentation

To transfer a claim, a copy of the DOA should be sent to:

• your insurer
• the Natural Hazards Commission Toka Tū Ake by email at [email protected] or by post to NHCover Claims, PO Box 311, Wellington 6140.

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Assigning your EQC Claim

As the years from the Canterbury Earthquakes have passed, more and more homeowners are have reached settlement with their insurers and have completed repairs or rebuilds.  As part of this process, an insurer will seek an assignment of the EQC payments a homeowner has received in relation to earthquake damage.  It may be that a homeowner has received more than one payment from EQC, for claims relating to the September 2010, February 2011, and June 2011 earthquakes.  An insurer will expect, prior to undertaking repairs, the homeowner to assign and transfer those payments to it in order to contribute to the costs it will incur in repairing or rebuilding the property.

A homeowner will be provided with a Deed of Assignment of EQC Claim.  This document is a formal deed which includes a number of warranties. It provides the insurer with the right to receive a transfer of homeowner’s EQC payment and any other benefit accruing under the EQC claim.

There are some points a homeowner should consider before making an assignment:

(a)  Many insurers have asked for an assignment somewhat prematurely:

• Often, a scope for repairs has not yet been agreed. There may be a dispute about the appropriate level of repair relative to the extent of the damage suffered to the property.  In this respect, an insurer is not entitled to an assignment of the EQC monies until such time as the scope adequately captures all the damage, and the appropriate level of cost have been allocated to each repair element.  If the matter is still in dispute, then you should not assign those monies.
• The assignment and transfer of money to the insurer is not necessary until around the time the insurer has called for contractor tenders or has appointed a lead contractor to manage the repairs.

(b)  A Deed of Assignment should only seek to transfer payments a homeowner has received in relation to the  “Residential Building”:

• An issue that can arise is where an insurer seeks to have a homeowner assign the EQC monies received in relation to their “land claim”.  Given the uncertainty around unknowns such as Increased Flooding Vulnerability (resulting in potentially having to raise floor levels if major works are being undertaken now or in the future); unknown soil composition and other subsurface layers of your land; and potential rezoning issues under the (draft) Replacement District Plan, it is important that a homeowner does not assign the land claim to their insurer without first seeking advice.
• As a homeowner, you pay a premium to an insurer to insure your house, outbuildings, hard landscaping, and other items such as pools. In these circumstances, and in these policy types, you do not pay for cover for the land.  The corollary to that is your insurer is not entitled to payments you receive in relation to your land.
• An exception may arise only where the insurer will be undertaking significant ground remediation.  In that respect, they may be entitled to claim the EQC “land claim” payment from the homeowner.  But the caution is that it is only appropriate when the scope for repairs or rebuild calls for significant ground remediation and/or enhanced foundation replacement.

If you are uncertain as to whether your insurance company is going to undertake these types of work to your property while it managing your repair, we strongly recommend seeking professional advice in relation to your scope.  It is also appropriate to have any Deed of Assignment reviewed by your solicitor, whether it assigns your “Residential Building” or your “land claim payments” from EQC. This is particularly important given the uncertainty as to where responsibility lies between EQC, Council and the insurers to remediate land.

The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.

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Buying a house after a natural disaster

Damage checks, repairs, insurance claims. How to assess risks in an area affected by earthquakes, floods or other natural disasters.

On this page

Know the house before you love the house. To avoid costly surprises down the track, it's a good idea to be thorough when considering buying property in a post-disaster area.

Buying a home anywhere requires some checks to give you confidence you're doing the right thing. In a known disaster-affected area, it's especially important to be aware of any potential issues or hazards with a house or area before you commit to buying.

Understand the impact of natural hazards - Understanding the impact of natural hazards | Settled.govt.nz (external link)

Many homes are repaired carefully following natural disasters like earthquake, flood, or landslips. But not all properties are sure to be a safe, sensible purchase.

Extra money, extra help

Anyone considering buying a house in an area affected by natural disaster should:

Budget for extra due diligence: Plan to spend more time and money assessing the condition of a house than you otherwise would.

You still need to do the basics, eg commission a builder's report, read the LIM report. But to learn about potential damage and repairs, and generally have peace of mind, you'll need to consult with experts.

The cost of extra checks can feel frustrating, but budgeting for these is better than finding out later you have an unsafe home.

Hire a building surveyor: Choose a registered expert with knowledge of structural damage and repairs.

Find a registered building surveyor (external link) — New Zealand Institute of Building Surveyors

Get independent legal advice: Talk to a lawyer with proven experience in conveyancing law and insurance claims. A Community Law Centre will be able to provide a list of lawyers who can help.

Find the nearest Community Law Centre (external link) — Community Law

Check out the house and area

Visit the property and have a good look around. This won't help you understand the structural condition of the house. But it will give you a sense of whether you want to learn more about the property. The EQC website has tips and videos.

Features to look for in a property (external link) — EQC

Find out how land and buildings in the area were affected by the natural disaster. Search online for news stories. Walk or drive around the neighbourhood to check if other homes are newly repaired or having building work done.

What to watch out for: If many homes appear to be new, freshly repaired, or have repair work underway, it can be a sign that most properties in the area were damaged in the disaster. If a seller says their home had no damage, or they didn't make an insurance claim, ask more questions. It's possible a cash settlement was awarded but not used for necessary repairs. As an interested party, you can also call EQC to find out whether the house has been the subject of a claim.

If you are thinking about buying the house, ask a building surveyor to inspect it. Ask for a report about any damage to the house, and the quality of any repair work.

Ask the seller or agent questions. Even for properties in good order, it's important to get correct, up-to-date information about damage and repairs.

Example — Extra inspection, just to be sure

Hannah and Elliot want to buy a house in an earthquake-affected area. A report from a pre-purchase building inspector shows it has "good bones" with no major problems needing attention. The interior has been upgraded following the quake, so the couple also hire a registered building surveyor to check how the house has been maintained for wear and tear, and how quake damage has been repaired. Hannah and Elliot learn the house had new floors and door frames installed to address post-quake problems. The surveyor helps them understand the history of repairs and improvements. Confident they won't be surprised by unexpected issues, Hannah and Elliot buy their first home.

Insurance claims

Ask the seller or real estate agent:

• Was the property damaged in the disaster?
• Were any insurance claims made?
• If yes, have the claims been settled yet?

If no claim was made

Take extra care looking over the home and property. Commission a report from an expert, eg registered building surveyor or engineer. Ask them about their area of expertise and any limits to what they can advise you on. They should pay close attention to:

• uneven floor levels
• stuck or loose doorways into rooms
• stuck or loose doors on cabinetry
• any leaking or cracking.

Find an engineer (external link) — Engineering New Zealand

If claims were made

Find out which insurers are involved. It might be EQC alone, or there could be claims with EQC and a private insurer, eg if the cost of repairs go over the EQC cap.

Ask if settled claims were resolved through a cash settlement or managed repair. This casts light on what documents and evidence you should check.

Check what you will be entitled to if any insurance claims are transferred to you:

• EQC claims , or parts of claims, transferred to a new owner give that person the same entitlements as the previous claim holder. This means the new owner will receive any remaining entitlement up to EQC’s cap for a natural disaster event.
• Private insurance claims work differently. A new owner might not be entitled to the same benefits assigned to the previous owner. Seek legal advice to understand what transferring any claims would mean for you.

To receive information as an authorised party, ask the claim holder to sign a privacy waiver so private insurers can consider sharing details with you. EQC can release limited assessment and repair information without authorisation, but you are encouraged to get a privacy waiver which then allows EQC to discuss the claim details and history in full.

What to watch out for: Insurance claims are held by people, not properties. Ask the seller or agent if all claims have been transferred to the most recent owner. As an interested party, EQC can provide you with a summary of building claims made in relation to a property. The information they can provide is limited but will let you know if any insurance claims exist, but have not been transferred.

If claims were settled

An accepted insurance claim is settled by either:

• Cash settlement — money to pay for repairs.
• Managed repair — the insurer pays tradespeople to complete repairs.

Cash settlement

The insurer pays the property owner directly if there is no mortgage. If there is a mortgage, cash settlement goes through the lender. The owner and lender then agree how to release money for repairs.

All cash settlements include an agreement on how funds need to be spent, and most owners are responsible and use the money for repairs. To protect your interests, it's good to do extra checks.

Ask the seller to see:

• documentation of damage, eg photos, quotes for repair, insurer's scope of works
• proof of the amount paid, eg receipts from tradespeople
• evidence of repairs, eg code compliance certificate, producer statements from construction professionals.

Search online to check that tradespeople or engineers who worked on the property are licensed and reputable.

What to watch out for: If the seller says repair work has been done but they can't or won't provide proof, it's possible they decided not to use their insurance payment for repairs. This is a warning sign. It means a house might have issues the seller is not aware of, or that haven't been disclosed. As an interested party, you can contact EQC to request copies of the scoping and assessment documents completed in relation to the property. This may then help you query the seller on repair work carried out.

Managed repair

• damage report or scope of works, setting out how the home was damaged and which repairs or replacements were needed
• repair statements, code compliance certificates, or other documents showing the sign-off of repairs — these show an inspector has checked the repairs and is satisfied.

Check the date on damage reports. Reports issued soon after the damaging event can be overridden by later reports as more investigations are carried out — especially if the damage value goes over the EQC cap.

Any home buyer can ask the seller for documents about repairs from EQC or a private insurer. If these are not available, it's possible the previous owner accepted a cash settlement for the value of damage to the house.

If claims are yet to be settled

If insurance claims for damage to a house you want to buy haven't been settled, talk to a lawyer to find out what this means for you. It could mean repairs haven't been completed and might end up being your responsibility. Ask what rights you will get if any insurance claims are assigned to you.

An ‘as is, where is’ sale suggests a house is being sold in its current state. The seller may not know about necessary repairs. Make sure you understand any known issues.

Gather documents and records

Make an effort to understand as much as you can about the house. The type of information you can get might include:

• how the house and area were affected by the event, eg flood, landslip, earthquake
• the sales history of the property, including previous owners
• how any settled insurance claims for damage have been resolved, eg cash settlement or managed repair programme
• if any insurance claims are yet to be settled
• if repairs to fix damage meet building requirements
• if the property has been sold since the event
• the possibility of damage that has not yet been identified.

Information has its limits. That's why it's so important to get as much of it as you can — to complete the picture.

Here is a list of records you can ask for, and the limits of each:

Request any information the seller has. This might include various technical assessments, the claim history, development of reported damage, scope of works and cost estimate, and what work has been completed.

This is an assessment of damage to the property. It's possible for a property to be assessed more than once after a natural disaster, so there might be more than one report. Damage reports are useful but not always comprehensive. Some damage is not obvious, eg a crack under carpet won't necessarily be visible to assessors. Some damage can appear, or worsen, after a report is delivered. It can also be hard to know if there are reports the seller or agent isn't aware of.

This sets out work required to fix damage, and the estimated cost of the work. Check this document has a date, and includes all costs of completing the work. A scope of works can only estimate costs to repair damage that has been identified. It shouldn't be relied on as a definite statement of how much it will cost to fix all damage.

Get the property's LIM (Land Information Memorandum) report from the local council. If the seller's other documents say repair or replacement work has been carried out, the LIM might include building consent. This tells you what work has been done and whether it is up to council building and safety standards. Not all repair work will be recorded by the council because many repairs don't require consent.

Ask if the council has extra information, eg flood mapping, land contours.

These show which tradespeople completed repair work, and what materials and methods they used.

You can ask the seller to waive privacy rights so their insurance company can share the claims file. A privacy waiver allows the company to share this information with you, but doesn't legally require them to. This means you might not be able to access information in the claims file, even if the seller agrees to you accessing it.

Search online for the sales history of a property. This will show the date and price each time it has been sold. If the property has been sold since the disaster, it might take you a bit longer to find out about any claims lodged by previous owners with EQC or private insurers.

If you're looking to buy a residential property in Canterbury, you can check if a Canterbury earthquake sequence claim has been lodged by a previous owner and decide whether you require more information on the claim as part of your pre-purchase due diligence.

What to watch out for: If any developers or building companies are listed as owners since the damaging event, do extra checks. Search online to research their reputation. Ask a building surveyor to pay particular attention to repair work. Most previous owners are responsible. But some take advantage of an opportunity to profit from cosmetic improvements, eg a fresh coat of paint or new curtains, without repairing structural damage.

As an interested party, you can request information relating to the assessment and repair of a property directly from EQC. The information will be redacted to protect the privacy of the current homeowner, but will provide you with an outline of any damage found.

EQC can’t release settlement figures to interested parties but this can be made available to those who have a conditional sales and purchase agreement. You can request information as an interested party and find out further information on the EQC website.

Requesting claim information (external link) — EQC

Take time to consider and compare the documents you have access to. Get expert help. Pay particular attention to this step to give yourself confidence about whether or not to buy the house.

What to watch out for: If you notice anything out of the ordinary, eg a big difference in the amount paid out and the cost of repair work, the seller may be keeping information from you. This is a warning sign. It could mean damage hasn't been repaired and may cause problems in the future.

If you are the new property owner or hold a conditional sales and purchase agreement, you can ask EQC to provide copies of the scoping, repair and settlement documents on file. This can then help you to compare the damage found against the damage fixed.

Types of expert help

Buying a home is a big deal. In an area recovering from natural disaster, it is even more important to carefully consider the pros and cons. You can assess risk yourself, but expert advice is the best way to make an informed decision about buying in a disaster-affected region.

Lawyers can help you interpret insurance information. They can explain issues relating to insurance policies, and your rights and obligations when purchasing property affected by natural disaster. A lawyer can help you access documents you're entitled to. They might be able to liaise with insurers on your behalf.

Registered building surveyors can identify damage and advise you about the quality of repair work. They know about construction issues, and can help you interpret damage reports and scope of works information. A registered building surveyor can tell you if something needs further investigation, and who else to seek help from.

Pre-purchase building inspectors/pre-purchase building surveyors can provide a pre-purchase condition record. Choose an accredited inspector who complies with NZS 4306 — the New Zealand standard for property inspections.

Builders can advise on the condition of a house. Not all builders are qualified to inspect natural disaster damage — and builders can't say what would or wouldn't be covered by insurance.

Residential risk analysis specialists can help you compare repair quotes, receipts and work completed. They can help you decide if buying a particular property is the right thing to do.

When you buy

As a condition of purchase, ask the seller to transfer any insurance claims for damage to you through a deed of assignment. There may be one or more claims from EQC or a private insurer. You can use the sale and purchase agreement to cover detail of claims being transferred, and ask your lawyer to carefully check any conditions in the agreement.

Transferring claims into your name is a vital step.

• Settled claims: transferring gives you the ability to liaise with insurers about past claims on your new property. It means you know the history of the claim and can take action if you have any concerns later. It might mean you can take over the rights of the seller.
• Yet to be settled: transferring claims into your name means you might get remaining entitlements held by the previous owner(s), eg payments for repairs.
• Send your Deed of Assignment to EQC for processing: This will ensure they have you on file as a claim contact ready for any future interactions.

Transferring a property claim (external link) — EQC

If something goes wrong

There might not be a way to resolve any problems that appear after you buy the house. This is why it's very important to devote time and energy to assessing any risks before buying property in an area recovering from a natural disaster.

If there's a problem with your new home, it's best to seek legal advice.

If the seller or their representative, eg real estate agent, lawyer, deliberately didn't share information about a known problem, that's illegal. You can take legal action.

Solving issues with the real estate agent or owner

Working with a lawyer or conveyancer

Looking for other topics?

Assigning an EQC Claim

Have you bought or sold a house in Christchurch since February 2011? It’s unfortunate that ten years on from the devastating Canterbury Earthquakes, we are still dealing with the long-term damage to land, property and lives.

How did we get here?

In case you need a reminder, there was so much damage to be repaired in the wake of February 2011 it was difficult to see how it could all get done. Tradespeople from around New Zealand and the world flocked to Christchurch to lend a hand and their expertise to fix homes and make them livable again. Sadly, some people viewed Christchurch’s tragedy as a ‘get rich quick’ scheme and did not put in the time and effort to ensure their repair jobs were completed properly.

Ten years later, many in Christchurch are still fighting to have their homes repaired, or to have original ‘repairs’ to their homes fixed. It’s vital that if you’re buying property in Christchurch, you have any outstanding EQC claims transferred to you.

Still dealing with earthquake damage?

When an EQC claim is assigned or transferred, you as the new owner do not have the same entitlements as the previous owner. Importantly, if earthquake damage has been missed or repairs were not up to standard, having the original EQC claim assigned to you will allow you to reopen a claim.

If a property has been sold without the EQC claim being assigned, the new owner gets none of the benefits from the claim.

Since the earthquakes, the conveyancing team at Godfreys Law has helped many Cantabrians buy and sell property, and assisted them with managing EQC claims and paperwork. A respected local builder who has repaired many houses since 2011 passed on this story about the importance of assigning EQC claims with property transactions.

Case study: Check your EQC claim is assigned to you

The builder’s client was living in Unit One of a two unit flat with a shared wall, and had bought the unit in 2017. On discovering new cracks around the foundation and an increasingly uneven floor, the owner of Unit One engaged the builder and an engineer to see if the new damage was the result of a substandard repair. The builder and engineer both concluded that the original repairs were substandard, which is when EQC asked to see the assigned claim for Unit One.

After going through the conveyancing paperwork, Unit One’s owner couldn’t find the assigned claim. They went to the previous owner, who also hadn’t had the claim assigned. Neither person could track down the original property owner and claim holder from 2011, and the conveyancing lawyer who handled that transaction had since passed away. While EQC agreed with the builder’s and engineer’s findings, as the current owner of Unit One had not had the EQC claim assigned to them, EQC were under no obligation to fix the substandard repairs.

Thankfully this story has a happy ending. The adjoining unit owner in Unit Two had been living there since 2011 and held the original EQC claim. An assessment of their property showed they had the same foundation and floor level issues as their neighbour. In order to properly fix the foundation and floor levels of Unit Two, the entire structure needed its floors and foundations repaired. As the two units shared a wall, foundations and floor, Unit One was brought into the scope of works under Unit Two’s EQC claim.

What you need to know before you buy

Before you buy your next property in Christchurch, ask:

• Is there an existing EQC claim on the property?;
• Have funds settled by EQC with a previous owner been used to do the repairs?;
• Are there any quality issues or substandard repairs on work originally undertaken by EQC to settle the claim, or any missed earthquake damage still needing reinstatement?;
• Is there any pre-existing damage to the property not related to a natural disaster?

If you’re not sure about the answers to any of these questions, let us know. As part of our property conveyancing due diligence, we can highlight any of these red flags for you. We can also add a clause to the sales and purchase agreement to make sure you’re assigned the EQC claim for your new property.

Transferring EQC claims has become standard in Christchurch when transferring ownership of property, but sadly some people are still getting caught out. Have you bought a house in Christchurch since 2011 and you’re unsure whether the EQC claim has been assigned to you? Do you have questions about earthquake damage or substandard repairs, and want to know as much as you can about your next property? Contact Godfreys Law on 03 344 7469 to talk to one of our property conveyancing team.

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Assignment of insurance for homes affected by severe weather

A couple’s home was severely damaged by storm.  Their circumstances changed which meant they had to sell the property before the repairs could be carried out. 

They engaged a real estate agent and disclosed the issue, but purchasers were very nervous about making offers as they were not sure how the process of taking over the claims would work.

Ideally, vendors should be repairing their properties before they put them on the market. However, this may not always be possible due to time and resource constraints associated with assessing the damages and repairing the property.

If vendors are selling their property before, or while the repairs are being carried out, they need to be cautious about any representations that they are making about the property. They should also be aware of what insurance rights they can or cannot assign to a purchaser.

Purchasers wishing to purchase a property which has been subject to Toka Tū Ake EQC (“EQC”) or insurance claims need to ensure that they are carrying out their due diligence, and check what insurance rights can be assigned to them as purchaser.

Assignment of insurance

EQC will allow the assignment of insurance claims from vendor to purchaser as a right as the insurance is connected to the land, rather than the individual owning the property.

On the other hand, private insurance policies are connected to the owner and usually include a clause prohibiting the assignment of insurance. Private insurers will consider any request for assignment of a policy on a case-by-case basis.

An assignment can become complicated where properties have both an EQC and private insurance claim, especially in situations where the EQC cap has been exceeded for the property.

Agreement for Sale and Purchase and Deed of Assignment

Where a purchaser wishes to take over the vendor’s EQC and/or private insurance claims, then the Agreement for Sale and Purchase will need to include a clause which states that the Agreement is subject to the confirmation that the assignment of insurance is possible within a stated timeframe, and that the parties will agree to the terms of assignment.

The parties should take into account the following in the Agreement:

• any insurance payments the vendor has received from EQC and/or their private insurer which have not yet been applied to any repairs on the property;
• any repairs carried out by a vendor which have not been claimed under EQC and/or the vendor’s private insurer; 
• whether any residual insurance rights should be assigned where a home has already been repaired. This gives the purchaser the right to re-open an existing claim if the repair work is incomplete or did not cover the full scope of damage; and
• where a property has been bought and on-sold, that there is a continuous chain of any deeds of assignment of insurance to provide the purchaser with residual rights.

Difficulties can arise if the purchaser tries to re-open an existing claim which exceeds the EQC cap as the purchaser will not have a right of recourse against the vendor’s private insurer. Purchasers should therefore carry out thorough pre-settlement building inspections to reduce their chances of future loss.

To assign EQC or private insurance claims a Deed of Assignment will need to be entered into between the vendor and purchaser. Your experienced property lawyer will be able to provide you with the right advice and a suitable Deed.

Vendors and purchasers should always receive legal advice from a legal professional before buying or selling a property to ensure that they are fully aware of their rights and responsibilities.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

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If you are a New Zealand Super Gold Card Holder (Australian Senior Cards do not qualify) we will give you a 75% discount of the fee for one of our set fee 1 hour initial consultations. We will also give you a 17.5% discount off the first matter we handle for you and then 12.5% off any subsequent matters for you.  These discounts relate to your personal matters only (i.e. not business, trust or organisational matters or the sale and purchase of investment properties).

To receive the discount please let us know if you are a New Zealand Super Gold Card Holder.

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More EQC info now available to homeowners

• Hon Dr Megan Woods

Homeowners can now access more information about a property’s previous Earthquake Commission claims, says Minister Megan Woods.

The Government’s Earthquake Commission Amendment Act passed by Parliament this week, empowers EQC to share more information about previous claims on a home.

“Previously homeowners and prospective buyers could only get information about claims on a property where there was a deed of assignment from the former owner. This meant people couldn’t find out what EQC claims there had been on a property they owned or were looking to buy. People should still get a deed of assignment when buying a house, but this change helps people who don’t have one.

“The changes we have made also allow EQC to share information to prevent or lessen a threat to public health or safety.

“Extended information sharing is one of four changes made to the Earthquake Commission Act. We have also increased the time limits for claim notification to up to two years; to give people more time to lodge their claims. They will still need to show that the damage was the result of an event covered by EQC,” says Megan Woods.

Further changes increasing the EQC cap on new claims and removing cover for contents, will come into effect from 1 July 2019 as people’s house and contents policies with their private insurer are renewed.

“Increasing the cap EQC can pay on new claims to $150,000, from $100,000, recognises the increase in building costs and means less over-cap claims will need to be passed onto private insurers.

“We have also removed EQC cover for contents and personal property, which will be picked up by private insurers. Removing cover for contents will focus all EQC’s claim management resources on resolving residential building and land damage claims.

“These four common sense changes will improve the efficiency of New Zealand’s natural disaster insurance scheme and focus EQC’s claim managers on helping people fix their homes.

“We’re making these changes ahead of the Inquiry into EQC and a further review of the EQC Act, as they are straight-forward improvements that fix identified issues with the scheme. These changes means that if the worst happened and there is another natural disaster, claims can be managed more efficiently,” says Megan Woods.

Christchurch Earthquake Issues – Selling Or Buying A House

Kris Morrison came into my office today, and said: “Lets make a podcast on earthquake and EQC claims issues for those living in Christchurch”.  So we sat down, and I asked him the following questions.   We have recorded the discussion as a podcast, and you can listen to it here:

Below is  a full transcript of the discussion:

Sybrand : Hi, it’s Sybrand here from Parry Field Lawyers joining you again for another podcast on topical, legal topics – that’s using topical twice in one sentence, but that’s okay.  With me today I have got Kris Morrison.  He is an associate here at Parry Field and he has been helping a lot of people with earthquake questions and we think there may be a lot of earthquake questions coming up.

So, Kris, I have got someone that has got an earthquake problem.  Who do they go to for help?

Kris : Well, the short answer is they probably go to somebody who knows, practically speaking, how the system works.  There are not that many people in Christchurch who are really experts on dealing with earthquakes – it’s a new phenomena for us but there are people there who understand how the EQC process works, how insurers work and what their policies actually say.  And what you need to help you with your problem is somebody who can navigate the maze of different requirements and get you a quick and as positive as possible an outcome for your problem.

Sybrand : So what a lot of people will be doing – I saw in the paper recently that a lot of Australians use doctor on Google to ‘doctor themselves’, but I guess that is what people will be doing with the earthquake as well. And you would find a lot of anecdotal evidence out there.  How useful is that?  Is that a good idea or a bad idea?

Kris : Well, at the moment, what there is out there is a lot of anecdotal evidence and it is good that people are pooling their experiences.  There are some people who have set up blogs to try and just share their experiences with EQC and their insurers.  But I think there is going to be a process over the next six months or so of people finding out exactly how this process is going to work.  EQC and the insurers have their theories but this is a big scale problem and the dynamics of how they repair damage will change over the next six months to a year – maybe the next few years.

Sybrand : Okay.  Well, there are three types of problems people can run into.  The first one is buying and selling a property.  The second one is getting insurance. And then the third one is, for most of us who have EQC claims – and I have already had my claim paid out; we had mostly cosmetic damage and I was happy with the payout; it was a very smooth process – but I guess people can run into problems.

Let us talk first about buying and selling a property – those are people with more urgent needs.  One of the areas that you particularly specialise in is buying and selling of houses without earthquake problems.  What advice do you have for those looking to buy in Canterbury at the moment?

Kris : Well, the first thing would be that it is really important that you have clauses in your contract that are going to protect you and give you the opportunity to find out what damage has happened to the house you are looking at buying.  And equally so from a vendor’s perspective; it is really important that the clauses, the special conditions of the contract, do not over-commit you in terms of what you are promising to give to the purchaser.

Sybrand : Okay.  And those are the two main things. What about people who are looking to sell their property?

Kris : The first thing is probably – if you suspect that there is damage to the property, hopefully you have made an EQC claim (if there was damage in the original September earthquake it is too late to make a claim now) purchasers are going to want to know whether a claim has been made, what damage there is and what it is going to cost to fix it.  So they are going to want to see EQC reports, assessors’ reports and scope of works for your property.  And that is fine.  It is probably reasonable that they should want to see that information.  But what you want to make sure you don’t do is that you don’t promise to fix anything that EQC or the insurer has not agreed to fix.

Sybrand : Okay, because that could open you to some liabilities.

Kris : Yes, we have had some contracts come in where vendors were effectively saying that they were going to indemnify the purchaser for any damage that arose out of the earthquake, contracts like this being signed up before an EQC assessor had even seen the property and, of course, now that the assessors are getting around more properties, it seems as though in some cases they are declining to cover damage where they believe that it is caused by pre-existing problems.

With one of the contracts that came in a vendor was potentially agreeing to fix cracks in the foundations of their house whether or not those foundation cracks were caused by the earthquake – and that was potentially quite an expense that they would not be covered for by EQC if it was not caused by the earthquake.

Sybrand : Okay.  If you are buying a house and the vendor has already made an EQC claim, how do you get that transferred to you?

Kris : Our understanding is that EQC have indicated that they will acknowledge and honour Deeds of Assignment between the seller of the house and the purchaser of the house, so that one of the clauses that a purchaser would want to see in a purchase contract is if there has been an EQC claim made, the vendor needs to undertake to assign that claim and the benefits of the claim to the purchaser when requested by the purchaser.  And as long as that deed is signed up as part of the sale and purchase process, the purchaser should get the benefit of that claim.

Sybrand : So it is another document that you have to do on top of your sale and purchase agreement?

Kris : Yes it is.  Your lawyer will probably have a form of Deed of Assignment that can be used and these are coming up in most sales and purchases at the moment, so it is something that they are using for a good deal of different transactions.  So it is not something that will have to be re-written from scratch, but it is important that you have one.

Sybrand : The other thing that I am thinking of is – so you go and buy a house, the people did not put in a claim, what do you do?

Kris : Well, if they did not put in a claim and it was damaged in the earthquake and you sign an agreement to buy the property after the date of the earthquake, any damage that was caused in the earthquake you will not have cover for that in your insurance policy and you also won’t have the benefit of the vendor’s insurance policy.  So you will end up wearing the cost of that yourself.  The only thing you could do in that scenario is make sure that you get adequate expert advice from a builder and/or engineer before you go unconditional in buying the property and that they confirm that there is no damage – because if there is damage you will bear the cost of repairing it.

Sybrand : So it is just like, really, you are in the same position you were before – people usually get their builder’s reports, make sure the house is going to stand for the next few years, and it is exactly the same situation you are in?

Kris : Yes, that is right.  It is always a good idea to get a building report.  A house purchase is a big investment and, as you say, you want to make sure that the house is not going to fall down.

Sybrand : Great.  Look, I think that is all we have got time for.  We don’t want to make these too long.  What I propose we do is we come back and have another blog and maybe next week look at the issues about insurance and about EQC claims.

Great talking to you, Kris, thanks a lot.

Kris : Thanks very much, Sybrand.

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Breadcrumbs

• Buying a home
• Researching the property

Understanding the impact of natural hazards

When you’ve found the property you want to buy, it’s important to find out as much as possible about potential hazards before you make an offer.

Summary of important things to know

Before you buy, find out if any natural events are relevant to the property and how you may be able to reduce the risk of damage.

If you’re interested in a property in an area impacted by earthquakes, you should get it inspected by an appropriately qualified professional.

If the property has been the subject of an NHC claim (previously known as an EQC claim), check the NHC scope of work to see what was done and seek legal advice before you sign a sale and purchase agreement.

This information on natural hazards may not cover everything that is relevant to you or the property. You should always get advice from your own lawyer or conveyancer and other registered professionals.

Natural events

New Zealand is at risk of many types of natural events. Before you buy a property, find out if natural events could impact the property and how you may be able to reduce the risk of damage to buildings and land.

Hazards to consider include:

• earthquakes
• volcanic eruptions
• hydrothermal activity such as hydrothermal eruptions, ground subsidence and gas emissions.

The local council should have information on any hazards for the property you are considering. Some of this information may be available free of charge, or you could order a land information memorandum (LIM) report. Read more about LIMs here .

Visit the Natural Hazards Commision Toka Tū Ake (NHC) for more information on what to look out for. (external link)

Buying after an earthquake

Even small earthquakes can damage a home depending on its design, construction and the land it sits on. Pay particular attention to chimneys, foundations and retaining walls, noting their construction and quality. Land can also become less stable.

These features can make some homes susceptible to earthquake damage:

Houses on slopes with large open internal spaces.

Pole houses on slopes with limited foundation bracing.

Houses with more than one type of foundation, for example, concrete slab foundations as well as timber piles.

Houses with irregular design shapes or several split levels.

Double skin brickwork and unreinforced concrete block walls.

If you’re interested in a property in an area impacted by earthquakes, you should get it inspected by an appropriately qualified professional. We recommend using an independent property inspector or structural engineer who can assess and identify any issues.

A building inspector will assess the home, or particular features of the home, and prepare a report for you. Make sure you know what they will include in their inspection and ask for a sample report so you know what to expect. Check that they’ll consider how chimneys, foundations and retaining walls might perform or be affected by a natural event. 

Read more about property inspectors here .

If a property is in an area with known geotechnical problems, you may want to consider adding a Geotech report to your due diligence. Properties with steep slopes, known liquefaction issues, and those sitting on a cliff may be more prone to foundation and ground stability issues.

What to expect when the property has had an NHC claim

Ask the agent whether the home has been subject to an NHC claim. If it has, ask for more information about the claim including whether it has been resolved, and seek legal advice before you sign a sale and purchase agreement.

You can request previous claim information directly from NHC, however, we recommend you speak to the listing agent and vendor before contacting NHC as they may have obtained this information already. To request claim information directly from NHC, you can use NHC’s Official Information Act (OIA) request form which is used in accordance with the Privacy Act to obtain the history of a claim with NHC here (external link) (this can take up to 20 working days).

The type of information you can expect to receive:

• any natural disaster damage to the property (dwelling and land),
• any claims that have been made
• information about the assessed cost of replacing or reinstating damaged property
• what repair work has been carried out
• and settlement amounts.

You can then check to see whether that repair has been completed. Check local council files on the property to ensure any building or construction work has appropriate consents and ask your lawyer or conveyancer to review these too.

What does 'as is, where is' mean?

If you’re thinking of purchasing a home listed ‘as is, where is’, it may have:

• suffered substantial damage and has been written off by the insurers
• been approved for repair, but no repairs have been carried out, or
• not had insurance at the time of the natural event.

It’s a good idea to confirm that you can insure the house well before settlement because your lawyer and lender may require that you have evidence of insurance cover before the settlement date. Seek legal advice and clarification from the insurance provider before signing a sale and purchase agreement.

Transferring an existing claim

If a property with an NHC claim is being sold and the parties have agreed they want NHC to settle any outstanding claims with the buyer, the seller will need to complete a deed of assignment to advise NHC of the assignment of the claim to the new owner.

Find out about transferring an NHC (external link)  property claim.

Coastal hazards

Living by the sea is a dream for many Kiwis, but if you’re interested in a coastal or seaside cliff-top property, it’s important to understand the long-term risks and potential issues from rising sea levels and coastal erosion.

Government agencies have released information on the risks and impacts global warming and climate change will have on New Zealand coastal properties. The Ministry for the Environment states that rising sea levels will increase the risk of erosion, inundation and saltwater intrusion. And the Parliamentary Commissioner for the Environment has released a report which highlights the different effects global warming is having on our country.

If you’re interested in purchasing a coastal property, it’s a good idea to get it checked by an accredited property inspector who can identify defects, future or urgent maintenance issues and any problems resulting from a coastal location.

Below are some things to consider when looking to purchase a coastal property.

Rising sea levels

According to the environment report above, the sea level is likely to rise by between 50 centimetres and 1.0 metre by the end of the century. A report commissioned by the Deep South National Science Challenge (external link)   states that nearly 44,000 homes in New Zealand are less than 1.5 metres above the current average high tide mark.

If you’re looking for a property near the sea, it’s a good idea to ask what if any precautions have been made to the property to protect against the threat of rising water levels.

Flood zones and storm impacts

The frequency and severity of storms and cyclones bringing heavy rainfall, damaging winds, waves and storm surge to New Zealand has increased.

Coastal flooding typically occurs when a major storm, king tide, or tsunami causes the sea to surge inland. Flooding is usually caused by:

• heavy or excessive rainfall
• landslides — triggered by heavy rainfall or earthquakes
• rapid ice melt in the mountains
• a ruptured dam or levee
• high sea levels at river mouths.

The property title and LIM report may include a history of flooding as well as potential flooding hazards. Some councils may provide flood maps which show the area's risk of flooding.

If you’re considering living in a coastal area, find out about road access during storm conditions and consider the cost of vehicle maintenance if the road is often inundated by salt water.

Coastal erosion

Coastal erosion is a natural process which happens when wind, waves and water currents wear away the shoreline.

Properties located on low-lying sand or cliff tops are more at risk of erosion.

For more information on coastal erosion visit Te Ara (external link)  - The encyclopaedia of New Zealand.

Can you get insurance on the property?

If you’re looking at buying a coastal or clifftop property, you’ll need to find out if the property can be insured and at what cost.

As the risk of environmental damage increases along coastlines, insurance companies are reassessing how they cover this type of damage. Be aware that the cost of premiums may increase, exclusions may be added, or insurance cover may be withdrawn for some properties as the risk changes.

The Natural Hazards Commision Toka Tū Ake (NHC) doesn’t cover damage to land from coastal erosion (although it does cover storm and flood damage to land) and it doesn’t cover damage to residential structures or contents from storms, floods or coastal erosion.

Seek legal advice and clarification from an insurance provider before signing a sale and purchase agreement.

Maintenance and upkeep of coastal property

Property maintenance costs may be higher for coastal properties because salt water can damage building materials and exposed electrical components. There may also be additional upkeep, for example, cleaning salt from windows and removing debris.

Local council information

If you’re searching for a home in an area that has been affected by natural events you may need to collect additional information specific to the area. Councils will provide you with more detailed information about the natural events that can occur in the area.

Some councils provide geological hazard maps which allow you to search the area's flooding, faults, liquefaction, and geothermal risks. 

In Canterbury, you can look up a property’s land zone, technical category, regional information and data on the Canterbury Maps (external link) website. The Christchurch City Council also provides information about the technical categories and land zone on their website My Land Zone (external link) .

You can also find natural hazard property information on local council's interactive maps that provide information for property owners:

• Bay of Plenty (external link)
• Greater Wellington (external link)
• Hawke's Bay (external link)
• Northland (external link)
• Otago (external link)
• Whangarei (external link)

This is not a complete list of all councils interactive maps across New Zealand. You should contact your local council for more information.

Some councils located in coastal areas may also provide information about the area’s coastal erosion, landslips, rainfall amounts, and general coastal hazards including the effects of climate change.

Property Checker tool

Property Checker is a tool that helps buyers to identify potential issues with a property.

Simply answer a series of questions about a property you’re interested in. A report is produced which you can email to yourself and others. The report highlights some areas we recommend you research further before making an offer.

Learning about problem building materials

Understanding meth

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About natural hazards cover

Find out how to make a natural hazards cover claim, what's covered, and how much you're covered for.

Storm, flood, and landslide damage

After severe weather events we can contribute to the cost of cleaning up your land as a part of your settlement.

Learn about making a new claim, the claims process, and what to do when buying or selling a home with previous claims, including asking us for claim information

Our partnership with insurers

We work with most private insurers to simplify the process for making a claim for natural hazard damage.

Making urgent repairs

If your home has been damaged you may need to carry out urgent repairs to make your home safe.

Section notices

If certain section notices appear on a property title this can affect natural hazards cover and the outcome of any claims.

Canterbury earthquakes

We’re working hard to resolve outstanding Canterbury claims so no one continues to live in earthquake damaged homes.

Projects on the go

Data and modelling

Major data and loss modelling projects

Risk reduction and resilience

How we work to reduce risk and build resilience

Creating an Aotearoa New Zealand that is better informed about our natural hazards and more prepared for their impacts.

Making your home safer for natural hazards

Home buyers

Features to look for in a property

Building and renovating

Make your investment last

Apartments and shared property

What to think about and how to prepare

Ways to make your rental home safer

Natural hazards where you live

Know what hazards could affect the area you live in

Ways to protect your investment

Useful information to help you prepare

We exist to reduce the impact on people and property when natural hazard events occur.

New Zealand has a history of natural hazard events that has shaped our organisation’s history, and our name.

Get to know our Minister, Board of Commissioners, and Executive Leadership team.

How we work

At NHC Toka Tū Ake we have rules, policies, and ways of working that guide what we do.

Buying or selling a home with previous claims

When buying or selling a home that has been affected by a natural disaster, there are some extra steps that you should consider. Learn how to make informed decisions, request claim information, transfer the benefit of a claim, and complete a Deed of Assignment.

Make informed decisions when buying a home

If you’re considering buying a home that has been affected by a natural disaster it’s important to take steps to find out about the condition of the home you’re going to purchase and to identify risks and issues.

Talk to your lawyer, bank, and insurer

Seek advice from a lawyer or conveyancer to make sure you get all the information you need to make an informed decision. They will be able to help you identify and understand any risks. You should also discuss your plans to purchase the property with your bank and your insurer.

What to ask the real estate agent or seller

You can request documents from the agent or seller about the property such as the:

• record of title
• LIM report (Land information memorandum)
• property file from the Council.

Ask for any information about insurance or claims for natural disaster damage to the property. These can be given to the licenced building practitioner who is undertaking your pre-purchase inspection.

This could include information such as:

• any reports they have obtained
• receipts and consenting documents for any repairs that have been done.

Asking the seller or their agent the following questions can help you understand the history of natural hazard damage to the property:

• Is there an existing EQCover or NHCover claim on the property?
• Did the previous homeowner use their settlement funds to complete the agreed repairs?
• Are there any quality issues with repairs, or any missed damage still needing to be repaired?
• Is there any pre-existing damage to the property that is not related to a natural disaster?

Check the Natural Hazard Portal claims map

The Natural Hazard Portal claims map shows all settled EQCover and NHCover claims on properties in New Zealand from 1977 onwards. This information is freely available. The map will show you whether a claim has been settled, and what type of claim it was.

Get a pre-purchase inspection

Hire a licensed building practitioner to do a pre-purchase property inspection. A pre-purchase inspection is broad in scope and often begins with a builder's report. A building inspection can reveal potential issues or risks, and suggest what additional investigation might be needed, such as structural or geotechnical engineering reports.

An inspection might also include reports from engineers, surveyors, electricians, plumbers and other specialists. These reports can help explain the general condition of the property and identify any other potential issues.

Pre-purchase inspection reports can also help identify potential issues such as:

• Additions or alterations to the original consented buildings, which can be compared with the Council file and LIM report to check for any unconsented/permitted works.
• A lack of building maintenance that may lead to future issues and costly repairs.
• Work that may be necessary to bring a home up to the standard required to obtain finance or insurance for the property, for example, re-wiring or re-plumbing.
• Any safety concerns, for example, unsafe works or hazardous materials.
• Historical issues, for example, settlement and subsidence, construction issues, and defects such as weathertightness.

Home buyers should ask an accredited property inspector to produce a pre-purchase building inspection, and not rely on any pre-purchase report provided by the seller.

NHC assessments (formerly called an EQC assessment)

An NHC assessment (formerly called an EQC assessment) is not a substitute for a pre-purchase inspection and shouldn’t be relied on when doing due diligence on a property.

The purpose of an this assessment is to record the damage to an insured residential building, following a natural hazard event. This assessment is then used to create a scope of works, which sets out the strategy for repairing the damage, and the costs of those repairs.

If a scope of works was used to settle an natural hazards cover claim it can be helpful to cross-check it with a building inspection check sheet.

Section notices on the record of title

You should ask for legal advice if there are any section notices on the property’s record of title. There are two main section notices that homeowners or homebuyers should be aware of.

Section 72 

A section 72 notice on a property’s record of title may result in us fully or partly declining your claim. This notice can be placed on a property that is known to be affected by or at risk of a natural hazard. It is intended to make anyone with an interest in the property (such as potential buyers, banks, lenders and insurers) aware of the risk, as well as specifying what that hazard is.

If a claim is made for damage caused by the same type of hazard (or hazards) that is specified on the notice, Natural Hazards Commission Toka Tū Ake have the right to fully or partly decline that claim.

These notices can also be called section 36(2) if applied under the Building Act 1991, or section 641a if applied under the Local Government Act 1974.

If a property has any one of these notices on the title you should:

• Check the LIM report or talk to the local council to find out about the nature of the specified hazard(s) and what this might mean for you as a homeowner.
• Consider the risk of damage to the property in the future, as well as how the notification may impact on your insurance cover (including EQCover or NHCover).
• Talk to your insurer.

Section 28 or 51

A section 28 or 51 notice appears on property’s record of title in specific situations when NHC Toka Tū Ake has limited or cancelled natural hazards cover after cash settling a claim. This usually happens when there is significant damage to a property, and the homeowner has not taken steps towards making repairs, within a reasonable timeframe.

Read more about section notices and how they affect natural hazards cover. 

Request claim information

It’s important to know whether a home you’re buying or selling has had previous natural disaster damage, and whether this has been properly repaired. Anyone can request claim information on a property from us.

Requests for claim information on a property are considered an official information request and can take up to 20 working days. You can make a request for claim information using our online form.

Learn more about requesting information including how long it might take, and the types of information we can provide on our Request information page. 

Sellers or their agents can request claim information

Potential buyers will want to see any documents you can provide relating to any previous natural hazard cover claims, including the damage that was assessed and the status of any repairs.

Request these documents from us before putting your home on the market so they are available for prospective buyers. Your lawyer or real estate agent can also make this request for this information on your behalf.

Buyers can request claim information

If you are considering buying a home, it’s very important to ask the seller or the real estate agent if it has had any previous natural disaster damage. You can ask for copies of the documents that relate to the damage that was assessed and the status of the repairs. This is an important part of your due diligence when purchasing a home in an area that has been impacted by natural hazards.

If the seller is unable to provide the correct documents, you can make a request for claim information from us. Your lawyer or real estate agent can also make this request for information on your behalf.

Assignment of claims

When buying or selling a property that has an EQCover or NHCover claim, the claim can be transferred to the new homeowner. Once a claim is transferred, the new homeowner will have the same rights and benefits as the previous owner. The rights and benefits of the claim refers to any remaining settlement for natural disaster damage to the buildings and land that are covered by us.

This process is called an assignment of claim, and is commonly done using a document called Deed of Assignment. Other situations such as change in a relationship, or the homeowner passing away may also result in a requirement to transfer the rights of a claim.

Exactly what is assigned to the new homeowner will depend on what is outlined in the Deed of Assignment and any relevant provisions in the private insurance policy.

When a property is sold without claims being assigned to the new owner, any rights and benefits of that claim remain with the previous owner of the property. If a property is sold multiple times without assigning the claim to the new owner, the transfer of claims must start from the original owner, pass through each subsequent owner, until it is transferred to the current homeowner.

Properties with settled claims

When a property has a settled EQCover or NHCover claim, the rights and benefits of that claim should be transferred to the new homeowner.

Homebuyers should find out whether repairs associated with a settled claim have been completed. Any funds already settled to a previous homeowner will remain with the previous owner, unless they are transferred to the new owner as a part of the sale and purchase contract.

If any previous homeowner failed to use their settlement funds to complete the repairs, the new homeowner won’t be entitled to any additional settlement from EQC for that damage.

A homeowner might reopen a settled claim on a property if:

• additional natural hazard damage that was missed in the original claim is discovered, 
• repairs managed by NHC Toka Tū Ake did not meet statutory replacement standards (only for Canterbury claims that had managed repair).

To re-open a previously settled claim following a property sale, the new homeowner will need to provide expert reports relevant to the claimed damage that they received after they purchased the property.

Properties with unsettled claims

When buying or selling a property with an unsettled EQCover or NHCover claim, the rights and benefits of the claim should be transferred to the new homeowner.

It is important to note that just because a claim has been lodged, there is no guarantee that we will accept the claim. Sometimes issues with the claim aren’t identified until after the claim is lodged. Because of this, we strongly recommend you seek legal advice when purchasing a property with an unsettled EQCover or NHCover claim.

As with all claims, there is a maximum amount that we can pay. The cost of fixing the natural disaster damage might exceed the limits of our natural hazards insurance cover.

The seller should contact their insurer to find out what, if any, insurance entitlement the new homeowner might receive. If the private insurance claim can also be assigned to the new homeowners, they may not have the same entitlement as the original owner, or any entitlement from the private insurer at all.

The buyer should confirm there is no missed damage – and where there is, address this with the seller (using their private insurance policy coverage if relevant) before the sale. If repairs have not been completed, the buyer may be unable to get private house insurance, or NHCover for future natural disasters.

The excess is paid by the homeowner

All natural hazard insurance claims are subject to excess. This is taken out of the settlement amount that is paid to the homeowner for their claim. Any agreement in the Deed of Assignment on who will pay any excess will not change who NHC Toka Tū Ake invoices.

How to assign a claim

Both the seller and the buyer should seek advice from a lawyer about assigning claims, and talk to their insurer. Insurance companies might have different requirements for what documents are required.

The documents usually used to assign a claim are either a:

• clause in the sale and purchase agreement
• document called a Deed of Assignment (DOA).

Information required for a Deed of Assignment (DOA)

The most common document used to assign an EQCover or NHCover claim to the new homeowner is a Deed of Assignment (DOA).

A DOA should include the:

• address of the property being sold
• date of the DOA
• date that the DOA takes effect
• full names of all the current owners(s) and new owner(s)
• contact details of the purchaser
• signatures of all assignors and assignees which must be witnessed
• claim numbers.

There is often more than one claim associated with a property. If all claims are being assigned, please list them all. If only certain claims are being transferred, then please only list those.

When a party is a company, the Deed of Assignment must be signed in accordance with the relevant legal requirements.

Optional clauses

It can be useful to include a clause in your Deed of Assignment requiring the seller to assist in the completion of a claim. We encourage you to discuss this with your lawyer.

Information on settled EQCover or NHCover claims is not included when assigning a claim to the new owner. If the buyer wants to receive information on settled claims when they purchase the property, the seller can agree to this information being shared. A clause can be added to the DOA stating this.

Variation in names

If the name of the original claimant and the name on the insurance policy are different, the reason for this must be recorded on the DOA. For example, if the original claimants owned the property under a trust and insured the property in the name of the trust, the Deed of Assignment should record this fact to avoid confusion.

Common terms used in a DOA

Vendor – the person(s) who owns and is selling the property. Purchaser – the person(s) who is buying the property.

Assignor – The person who is transferring their rights to the claim. Usually this is just the property owner(s), but in some situations there are other people with an insurable interest in the claim who need to give their approval of the transfer. Assignee – The person who is receiving the rights of the claim.

Original claimant – the person who lodged the claim.

Where to send DOA documentation

To transfer a claim, a copy of the DOA should be sent to:

• your insurer
• the Natural Hazards Commission Toka Tū Ake by email at [email protected] or by post to NHCover Claims, PO Box 311, Wellington 6140.

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EQC deed of assingment, whos at fault and what can be done?

Hi PFNZ, not sure if this is the right place or not but here goes..

I bought a house in Christchurch mid 2020. In the sales and purchase agreement there was a clause that said my solicitor is to draw up an EQC deed of assingment signed by both parties and it be sent to EQC. This happened and in November 2020 my solicitor emailed and said there was an issue assinging the claim to me.

The solicitor then sent me an email with a document they somehow came accross from when the vendors purchased the property in 2018 saying there is no assingment of EQC claim or insurance claim meaning the house should have been sold "As is" (solicitors wording)

The solicitor said I could try and claim for misrepresentation and go for losses, but hard to quantify losses as there may not actually be any untill i sell, and its gonna cost me alot of money and I may not even get a result.

From what I have worked out the owners cash settled with EQC and then did a very poor job of renovating/repainting - a standard youd definitely not accept from an EQC repair company.

I did ring my insurance company (carried over policy from previous owner) and explained in detail to them and have confirmed via email the house is still fully insured, so its not as is in the typical sense.

However, now If i go to sell the house I would have to sell it "as is" which could significantly effect the saleability or price, and it also asks the question would I have bought the property in the first place/offered as much had I known.

This definitely should have been disclosed to me as at least the vendor and vendors solicitor knew and should have put it in the S&P, and the REA shouldnt have had the clause about deed of assingment.

At the time I couldnt afford to follow the issue as Id put everything into buying my first home. Then life got in the way and it completely slipped my mind, but now we are playing with the idea of moving which would mean selling this property, and having to sell it "as is"

So whos at fault? The vendor, REA, vendors solicitor or my solicitor? Or all 4?

Do I have a claim for misrepresentation? Against who? And how do you quantify loss/reperations/damages, if any?

Have I left it too late to claim?

Anything else I should be considering?

Appreciate any advice around the issue or where to go, if anywhere, or if anyones been in a similar situation and how its played out. I know I've missed details in an effort to keep it from becoming more of a novel so ask away if needed

Assignment and deed of assignment

What is assignment?

Like moveable and immoveable property, claims can also be sold. The transfer of a personal claim is called assignment. A creditor can transfer a personal claim to a third party. This third party will then supersede the original creditor. The creditor who sells the claim is called the assignor, the acquirer of the claim is called the assignee. The debtor is no party to this transfer, but the assignment has consequences for him: he will have to pay his debt to the new creditor.

Deed of assignment

There are some formal requirements for assignment. A distinction can be made between assignments with and without a notice to the debtor. Both forms of assignment have to be effected in writing, by deed of assignment to be more specific. The deed may be drafted between the creditor and the third party (private instrument) or in the presence of a civil-law notary (authentic instrument). The claim that is to be transferred must be sufficiently specified.

Notification of assignment and assignment without notice to the debtor

In case of an assignment with notification, the assignment will have to be notified to the debtor so he will know that he will have to pay to another party, as the debtor is not a party to the transfer. An assignment without notification does not require a notice to the debtor, but the deed of assignment will have to registered with the Tax Authorities. The debtor can be discharged from all his obligations by paying to the original creditor until he is notified of the assignment.

Assignment in practice

Collection agencies often buy up claims of businesses for the purpose of collecting these themselves. This is called factoring. Assignments also often play a part in insurance matters. If an insured party has suffered damage that may be recovered from a third party, the insurer may take over the claim for compensation from the insured party. The insurer then pays out the amount of the claim to the insured party and thus obtains a claim against the third party.

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