Boost in monetary cap under reforms to EQC Act
Finance Minister Steven Joyce and the Minister Responsible for the Earthquake Commission Gerry Brownlee have announced plans to simplify and improve the EQC scheme for New Zealanders.
“Everyone with a private insurance policy, that includes fire insurance for their residential building, will continue to receive EQC cover,” Mr Joyce says.
Mr Brownlee says the reforms will have no impact on the handling and outcome of existing EQC claims.
“The reforms we are announcing will simplify the relationship between the EQC scheme and private insurance and help provide faster and smoother resolution of claims following a major event.”
The reforms are:
- Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
- Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it.
- Standardising the claims excess on EQC building cover at $1,000. This currently ranges from $200 to $1,150 depending on the size of the claim.
- EQC no longer providing any residential household contents insurance.
- Requiring EQC claimants to lodge claims with their private insurer who would pass the claim on to EQC (if the property is insured).
“Requiring EQC claimants to lodge claims with their private insurer will help EQC and private insurers work better together in future,” Mr Brownlee says.
“Following feedback from the Discussion Document issued in 2015, changes were made in response to submitter concerns regarding the treatment of land damage affecting residential buildings, the previously proposed $2,000 excess and the idea of combining building and land damage cap amount.”
Further work now needs to be done on the details of a scheme that will incorporate the features just announced.
The Government hopes to release a draft of an EQC reform bill later this year or early next year, with the changes anticipated to be implemented in 2020.
Last updated on the 16th September 2019