It’s been a busy week for the CanCERN staff as we set things off rocking and rolling in the residential recovery space.
Here’s some of what we focused on to be MAD this week.
Over 65s
We pulled together insurers, EQC, CDHB, CERA, and a few community people to delve back into a space we’ve been talking about for a while: Getting over 65s through the repair/rebuild process better. We asked questions like: What motivates us to look more intently at this group? What concerns do we have? What is currently happening to get this group settled and well? Do we have enough good information to be able to pinpoint what’s working and where we could do better? This was a good discussion and we’ve already been able to highlight some of the stumbling blocks for progressing over 65s. The good thing about identifying the stumbling blocks is that it makes it much easier to figure out the solutions, and there’s no shortage of willpower to make solutions happen. So where to from here? We begin collating data so we can figure out where more resource is needed, or where existing resource needs to be better directed.
Quality of repairs
We had the opportunity to speak to some Wellington Ministry of Business, Innovation and Employment (MBIE) officials about what we see on the ground regarding the quality of repairs. We took approximately 0.002 seconds to decide that this was an opportunity not be missed and scouted around for knowledgeable people in the community to support the discussion. Knowledgeable people were found and we set about sharing key concerns, some of which are as follows:
- There are ample examples of repair work that is lacking and the reasons why are diverse – expertise and knowledge, assessment practices, interpretation of the MBIE Guidelines, repair methodology, and workmanship.
- The legacy issues need to be clearly identified and addressed.
- Assumptions have been made that the MBIE Guidelines will be used to indicate methodologies only in conjunction with overall expertise of a dwelling’s structure, its materials, on-site information, etc. This assumption has been at times incorrect and has enabled repairs to be done that don’t take the ‘whole picture’ into account.
- We believe the issues are potentially widespread and therefore need priority focus.
You would be amazed at just how much information you can put into a short meeting when the right people are there and listening is the focus. We appreciate the opportunity to add our information into the mix and will keep you updated if and when this line of conversation gains momentum.
In the Know Hub
The In the Know Hub is definitely gaining momentum with much of the funding secured, a venue in our sights, and agencies gearing up to provide information, education and expertise. A lot of focus this week has gone into logistics (thanks CERA) and figuring out how this Hub can be sure to Make A Difference. The big question is how do we make sure there is a good loop system working so that the information residents bring into the Hub (questions, concerns, stumbling blocks, solutions, etc) informs those working in the residential recovery space as well? If we can nail that we will be MAD in a big way.
Have a great weekend everyone and don’t forget about the World Wetlands Day coach tour on Sunday!
Increased Flooding Vulnerability – what happens now?
http://www.laneneave.co.nz/documents/Insurance_Flooding.pdf
If you’ve been told by EQC that your home is potentially flood vulnerable (IFV) make sure you read the article via the link above. Lane Neave Lawyers represented the Flockton Cluster Group during EQC’s declaratory judgement and have a fair bit to say about where things are heading with regard to further assessments, payouts and the like.
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Getting a fairer insurance deal
It’s good to see that non-disclosure is also being highlighted by others to the Insurance Council. A large focus of the CanCERN submission to the Fair Insurance Code review focused on this aspect.
Check out the original article here.
An updated version of the Fair Insurance Code is due to be unveiled next month, after a delay of more than six months which we were not terribly concerned about. We chose to interpret the delay as ICNZ taking the time necessary to ensure the Fair Insurance Code reflects the very many lessons learned from the Canterbury insurance saga.
Think about these scenarios – do we have to disclose them in case there is another quake?
- I’m no expert on building. I think repairs met Code.
- I have land settlement money which can’t be used to repair the land.
- I bought a property ‘as is where is’ and had it fixed myself.
- I’m in the flood zone.
- The neighbour above me hasn’t fixed their retaining wall.
- They said, ‘trust me’. Should I have?
- I bought the house after repairs. How am I supposed to know what happened to it? There is no documentation.
Here’s what CanCERN said to ICNZ in our submission:
Situations where a mistake or omission may have catastrophic future consequences need to be prescriptively detailed. This is currently done with regards to determining the value of a sum insured policy, but is seriously inadequate with regard to full disclosure. Returning to the concept of utmost good faith, the purchaser cannot be assumed, or required, to have perfect knowledge of what is material to insurers, therefore it is unreasonable to expect full disclosure of the assets, risks, materiality and duty without significant assistance. Nor can a policy holder be expected to have knowledge, let alone a clear understanding, of some of the legal aspects of their policies.
Insurers seem capable of producing detailed checklists for the assessment of physical risks (geotechnical, natural hazards, electrical, plumbing and building age and construction related risks). Why is it not possible to do the same for disclosure, and do away with the need for vague catchall phrases as currently contained in both policies and the Code?
Let’s hope that the changes remove the ambiguity around disclosure.
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Insurance payouts can’t be drip fed
http://www.laneneave.co.nz/documents/Insurance_Pay_Out.pdf
Lane Neave lawyers have put out some helpful articles recently, and here’s another one. It highlights a few important points that came out of a recent High Court case between a homeowner and the Medical Assurance Society. Follow the link above for the full article. Key points include:
- The timing of payments for repairs
- The meaning of ‘as new’.
- What assurance needs to be given about the effectiveness of proposed foundation repairs
- The importance of Building Standards in reinstatement design
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Read your policy: A friendly reminder
When was the last time you sat down and really read your insurance policy? While we’re all well aware that we should know our home insurance policies inside and out, it’s hardly the most engaging reading material on offer. Yet being able to understand the finer points of your policy wording can provide a lot of clarification about your entitlements, and may even give some guidance on how to proceed with issues you may be stuck on.
This week some of the CanCERN staff attended a workshop, hosted by Canterbury Insurance Assistance Service, on reading domestic insurance policies. It served as a valuable reminder about the importance of taking some time out to sit down with a highlighter and read every single line of your policy to make sure you understand it completely.
Policy Date
Make sure that the policy document you are reading is for the policy that was in place at the time of the event. Policies are changing all the time.
Definitions
In some policies, the wording in earlier parts of the document may not be quite the same as in the definitions section. These definitions may actually provide a policy condition that is not detailed within the earlier policy wording.
Payment for additional fees (e.g. architects, engineers, surveyors, building consultants, legal, council fees)
Some policies state that the insurer will cover the cost of such fees only if they have given prior consent, while other policies do not specify that the insurer has to give permission first, but rather that the costs incurred must be ‘reasonable’. The latter gives you a foot in the door to debate whether it’s reasonable for the insurer to pay or not, whereas the first policy mentioned requires you to get their permission.
Stress Payment
Some policies provide a one-off payment for stress caused. However, if you don’t ask for it, they may not pay it.
Additional costs due to building code compliance
There have been some instances where customers have been told to pay additional costs due to upgrades made in their repair/rebuild as a result of having to meet the building. Policies generally cover any additional costs to rebuild the damaged part, if these additional costs are incurred as a result of changes in government or local body by-laws. Customers should not have to pay anything extra if complying with building codes requires more expense than the original house’s standards.
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UPDATE: Insurance forum with ICNZ
Just an update on the post below, which we published last week…
Tim Grafton will no longer be attending the forum, however, Samson Samasoni from the Insurance Council (ICNZ) as well as a panel of insurers will be there. Tim Grafton didn’t pull out as such, but was never confirmed to attend in the first place, so our apologies for that bit of misinformation!
The Wainoni Avonside Community Services Trust has invited the Insurance Council to host an insurance forum in late February as part of their weekly ‘Wednesday’s Lectures’.
The evening is aimed at people living the east although everyone is welcome.
One of the main topics to be covered will be future insurability.
We’ll have more info in the coming weeks, so keep an eye out in the newsletter and SAVE THE DATE.
When? Wednesday, February 25th
Time? 11.45am – 12.45pm
Where? Wainoni Methodist Church, 878 Avonside Drive
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Gap Filler mix up
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EVENT: Keep learning from the experts
Here’s a guest post from Claimants4Claimants about an upcoming event that is well worth checking out. The feedback we got from residents about the last event like this was that it was very helpful.
>> Get your free ticket here <<
KEEP LEARNING FROM THE EXPERTS
On the 23rd February 2015 a group of professional people will come together to reflect on the last four years, to share lessons learned, highlight potential issues going into 2015 and to discuss possible solutions for our community.
Dr Duncan Webb of Lane Neave, along with Peter Woods of Anthony Harper are the two keynote speakers, supported by Zoran Rakovic, Adrian Cowie, Stewart Harrison, Bevan Craig, Ali Jones, Dean Lester, Cam Preston and more.
Dr Webb will take your through a summary of recent cases, their outcomes and what they mean for homeowners in general. Amongst other subjects Dr Webb will also touch on considerations around insurance moving forward and the complex issues with cross lease, retaining walls and flooding.
Mr Woods will drill down on the EQC struggle of being considered under-cap, when the property should be over-cap, as well as the general frustration many face dealing with EQC. He will look at what this may mean for us moving forward.
The Panel
Stewart Harrison (Registered Quantity Surveyor) will touch on sum insured policies, Zoran Rakovic, in his capacity as a Chartered Professional Engineer, will share his observations over recent months, along with Adrian Cowie Registered Professional Surveyor and Bevan Craig, Foundation Practitioner. All three who are very concerned about repair standards and in particular with foundations.
Cam Preston (Analyst) and Ali Jones (CCC Councillor), as claimants and individuals with public profiles will share their observations and learnings along with Dean Lester an Insurance Advocate.
There will be time for questions and answers with the expert panel members.
A Note On Logistics
Lane Neave, in association with Anthony Harper are supporting this event, however, we are asking for a gold coin donation, at the door, in support of the Transitional Cathedral.
You do not have to book and can turn up on the night, however, registering does help us with planning. Share this event with your friends, family and work colleges. It is highly relevant for all homeowners.
We ask that you arrive be seated for a 6:30pm kick off.
Please note: it is likely there will be a media presence. Media is supportive and can help you be heard.
Kind Regards,
Melanie Tobeck-Bourke
>> Get your free ticket here <<
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Friday Funny – caption this
This video made us laugh and we couldn’t resist posting it. We even came up with a few potential captions! Share yours in the comments below…
“No wonder the rebuild is taking so long.”
“If only EQC was this meticulous during its assessments.”
“Health and safety speeds up the recovery”
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