EQC Over the Cap Payments
The risk in buying homes in Canterbury has been a topic of hot discussion ever since the 2010/2011 earthquakes. The potential for undiscovered earthquake damage leading to expensive repair bills to get the home to an insurable standard continues to pose significant risk to prospective purchasers. Purchasers now need to complete more comprehensive due diligence to address this risk.
On 15 August 2019 the Government announced a policy that enables owners of on-sold over-cap properties in Canterbury to apply for an ex gratia Government payment to have their homes repaired.
If you’ve bought a home in Canterbury and discovered that it is damaged over the EQC cap ($100,000.00 plus GST), you may be eligible for an ex gratia payment to cover the cost of repair.
To receive the payment under the support package you must meet all of the following criteria:
- You must be the current owner of the property.
- Your application must have been made on or before 14 August 2020.
- You must have purchased the property within the specified time period, that is, you must have:
- made your offer to purchase the property after the natural disaster damage arising from the Canterbury Earthquake Sequence occurred to the property; and
- made your offer to purchase the property on or before 15 August 2019.
- If your offer was subject to a building condition, you must have satisfied or waived that building condition on or before 15 August 2019.
- The original owner(s) of the property must have lodged at least one claim with EQC.
- Before you made your offer to purchase the property the claim(s) lodged by the original owner(s) to which an ex gratia payment relates must have already been assessed by EQC and determined to be under cap.
If you have any questions relating to the support package and its application to you or if you are looking at buying a new home, please contact us to talk about your options.