The Earthquake Commission ("EQC") is coming to
the end of its Canterbury Home Repair Programme ("CHRP").
It is now looking to recover the excess payable for work managed by
From April, EQC will begin posting invoices for excess(es) on
completed CHRP repairs as part of the final steps of EQC's
Under the Earthquake Commission Act, EQC pay for the repair or
replacement of the damage, less applicable excesses for building,
land and contents claims.1 An excess is the amount a
homeowner is required to contribute towards the claims for a
natural disaster event; sometimes more than one excess applies, for
example where the damage has been caused by two or more different
Those homeowners who have already received a cash settlement
payment from EQC have already had the excess(es) deducted. Where
EQC opted to carry out the repairs under CHRP, EQC prioritised
fixing the home over collecting the excess before the works began.
For those homeowners who received cash settlements for their land
and/or contents claims, an excess may still be payable in respect
of the building repair works. Any CHRP customers who don't owe
any excess, will receive a letter from EQC advising them of their
The amount of the excess payable is calculated under a specific
formula2. Usually, the excess for a single standalone
dwelling is 1% of the total repair costs, subject to a minimum
excess of $200. The actual excess payable will depend on the total
costs of the repairs, including variations. EQC advise that excess
invoices will be generally in the range of between $200 and
EQC's invoicing process will begin in April 2015, with the
majority expected to be issued before the end of the year.
Customers who will be receiving an invoice, will be advised in
advance. They will have 3 months to pay the full amount of the
invoice, or the undisputed portion. If customers have difficulty
over making payment because of their personal circumstances, then
EQC can discuss special arrangements.3
For those homeowners who have sold their home after the repairs
were completed, then the owner at the time of the repair is
required to pay the excess, because they have had the benefit of
the repair. If there is a specific agreement between the vendor and
purchaser, or Deed of Assignment of the EQC claims, that makes the
purchaser liable for the payment of excess, then the new owner will
When buying and selling property that has had some repair work
completed by EQC it is important that the parties have a clear
understanding over who will pay the excess when demanded by
1Clause 1, Schedule 3 of the Act 2Regulation 4, Earthquake Commission Regulations
1993 3Check EQC website :
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