EQC: Settling claims may take months

Photo / Herald on Sunday

Two weeks after the Canterbury earthquake nearly 3000 homes cannot be lived in and about the same number are not weatherproof.

The Earthquake Commission said yesterday it had received 62,015 claims as a result of the September 4 earthquake.

But it warned it would be some time before claims were settled - or people even heard back from an assessor.

"It will certainly be weeks before some claimants hear from us and many months before all claims are settled," said EQC chief executive Ian Simpson.

Claims were being worked through on a priority basis.

"Certainly if there are habitability, safety and/or weatherproofing issues we have yet to deal with, we want to hear from people urgently."

Of the damaged homes, 2737 were so badly damaged they couldn't be lived in and 3053 were not weatherproof.

Three field offices were up and running and further offices would be opened as staff became available. From today, about 300 staff would be in Christchurch with 210 involved with the actual assessment of damage to property. Another 100 staff were expected soon.

Around 2000 properties had been assessed and some minor claims had been settled already.

Kaiapoi, Bexley, Burwood and Dallington were the first priority but assessors had now moved to Avonside and Lyttelton. Work in Selwyn and Halswell will begin today.

Mr Simpson said engineers had also inspected more than 3000 homes in areas where liquefaction occurred. Data collected from those areas could be with authorities as early as today - but it will be weeks until residents will know if they can rebuild there.

Liquefaction happens when soil particles are rearranged and soil mass compacts and decreases in volume, causing water to be ejected to the ground surface.

Scientists and engineers have been studying areas most damaged by liquefaction - Avonside, Bexley, Brooklands, Dallington, Halswell and Kaiapoi - with the first results due in early this week. Those areas were among the most damaged during the 7.1 magnitude earthquake.

Christchurch Mayor Bob Parker told the Herald all the data wasn't back yet but "rebuilding looks a possibility".

He said there was still a number of issues to consider including protecting people's equity and possible resale of homes in the future.

"Strong, clear decisions that protect the social and housing fabric into the future" of the affected areas was needed and those big decisions could not be rushed.

"I can't put a specific timeframe on it."

New powers given to local councils, to speed up resource consents for rebuilding, would be critical to the rebuilding phase.

Under the old rules, even with every building inspector in the country it would still have taken a couple of years to get every consent approved.

"Clearly we need that process to help people rebuild their lives," he said.

Meanwhile, workers from the Unite union picketed outside businesses they say ill-treated staff after the earthquake.

Union organiser Matt Jones said Garden City Bowl, First Security and Reading Cinemas had acted "appallingly".

He alleged staff worked under duress, were refused leave and denied payment during site closures - forcing them to use annual leave to cover the shortfall.

Reading national operations manager Mark Kendrick said he could not comment, and he had forwarded Unite Union's statement to solicitors.

"The statement that has been issued is factually incorrect and also defamatory towards our company - it's far from the truth."

Brian Young, chief executive of ISS New Zealand, owner of First Security, said the union was spreading things that weren't true.

"We actually work closely with our staff. No one has had wages docked. We brought staff from all around the country so people can have time off."

Almost completed home falls into insurance no man's land

A Christchurch couple are frustrated they cannot get insurance on their undamaged new home because insurance companies are not issuing new policies since the September 4 earthquake.

Megan Pow and Andrew Murphy's house near Rolleston is due to be finished this week.

Ms Pow said the four-bedroom home came through the earthquake totally undamaged.

"There's not a crack in it, nothing."

The house is under the builder's works insurance until the certificate of compliance is issued and the house is handed over.

But the Hong-Kong based couple have not been able to get insurance for the house and contents for when they take possession.

"We have even been denied cover that had exemption or stand-down time for earthquake cover," she said.

An insurance broker asked four insurance companies if they would issue a policy - but none would.

"We have been told to obtain a structural engineer's report and a Geotech report confirming there is no risk from liquefaction to the land and to then wait until the insurance gods decide to start issuing new policies," Ms Pow wrote in an email.

She said all the engineers were very busy and they had not been able to secure one.

"The impression we have got from these people and brokers is that this is a delay tactic from the insurance companies to avoid new policies. Hardly helpful or responsible."

Ms Pow said their builder was going to delay the final payment for a month, which she hoped would be enough time to arrange cover.

Her husband, Andrew Murphy, is back in New Zealand trying to sort the "stressful" situation out.

Mr Murphy said there appeared to be a knee-jerk from insurance companies, especially as no time frame was being given for when new policies would be issued.

By late yesterday it looked as if they would get some cover with Vero "appearing to soften their stance" and offer cover up to $100,000.

"But that wouldn't go anywhere near covering it," Mr Murphy said.

National MP for Selwyn Amy Adams said she was concerned people were facing delays and disruption when they did not have to.

Insurance Council of New Zealand spokesman Terry Jordan -

acknowledged owners of brand-new homes were in a difficult situation.

He said companies would not want to take on a policy and then risk cracks appearing in a house as a consequence of the ongoing aftershocks.

Two weeks on

* 2737 homes are unliveable

* 3053 homes aren't weatherproof

* 51 buildings in the Christchurch CBD have been declared unsafe

* 300 EQC staff in Christchurch with more expected to soon

* 2000 homes assessed so far

* 62,015 claims with EQC

- additional reporting: NZPA