Insurance Cover for say Landslip
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| 1 | This has been a Q I have been mulling over. A property has a steep slope behind it, it is noted in the LIM that is potentially unstable, but previously dated by 10-15 years engineering reports state that is stable and unlikely to slip. You purchase said property. 2 years down the track, the owners of the higher property decide to remove all the bush and undergrowth that is probably binding it altogether. Subsequent heavy rain and the land slips and damages yr building beyond repair. Would the insurance company run for cover and decline the claim on the basis of a documented pre existing risk, would the owners above be liable for effectively causing the slip, or does it end up a bun fight in court. Just wondering on opinions / experience. It has not happened, by the way. kenw1 - 2021-05-18 18:34:00 |
| 2 | kenw1 wrote: seaqueen - 2021-05-18 18:49:00 |
| 3 | We were looking at a property where this actually could happen, and pondered how the insurance co would react. The truck missed me, and Val Doonican lives for ever. kenw1 - 2021-05-18 19:23:00 |
| 4 | Woah, Val Doonican and Seaqueen are both alive. Wonders will never cease. cinderellagowns - 2021-05-18 19:53:00 |
| 5 | When you applied for said insurance, how did you answer the following question: "Has the property had any previous damage caused by, or has the council identified it as being at risk from any natural hazard, such as flooding, inundation, landslip, erosion or subsidence? " sparkychap - 2021-05-18 20:06:00 |
| 6 | cinderellagowns wrote: One of those three statements is wrong, sorry. sparkychap - 2021-05-18 20:21:00 |
| 7 | sparkychap wrote:
Woah???? smallwoods - 2021-05-18 20:33:00 |
| 8 | kenw1 wrote:
I saw someone say on here that it is the bottom property (ie the one which enjoys the ‘benefit’ of the land staying up that is responsible for the retaining??? (To be clear I don’t know the answer) huca1 - 2021-05-19 02:10:00 |
| 9 | OK serious answer. 1: this is a natural disaster as defined by the EQC Act so EQC takes the first position of liability. They insure for up to the first $ 150K of the property and remediation of the land up to the land value pro-rataed on the area around the house with a buffer of 8m. 2: so EQC may need to remediate the land damage first before the property can be rebuild (say if its now MORE unstable or the falled debris needs clearing and perhaps retaining. If that costs more than the land value (based on the 8m buffer) then you might end up having to pay for that out of your own pocket. 3: then the damage to the house will be assessed. It's possible that failure to declare the LIM Report could provide a reason for your insurer to decline, but that disclosure doesn't affect the EQC portion. So you'd likely get the first $ 150K EQC Cover. 4: the remainder will be up to the Insurer. As above, if you failed to declare the LIM, that *might* give them an out depending on the situation. But no one can predict that in advance. There are some more layers of complexity here I'll come back to later. sparkychap - 2021-05-19 07:01:00 |
| 10 | smallwoods wrote: Val's batteries ran out in 2015. sparkychap - 2021-05-19 07:02:00 |
| 11 | Thanks sparkychap, that is the scenario we had sort of thought out. 150k of cover wouldn't even get the job started, a further issue discovered yesterday is a 220mm main sewer line in the rising land behind the house, so in the even of any land movement that would inevitably rupture. On the subject of singing. I guess the song... These boots are made for walking.. applies here Edited by kenw1 at 7:48 am, Wed 19 May kenw1 - 2021-05-19 07:45:00 |
| 12 | sparkychap wrote:
That's a shame. My mum had an album of his, him looking all kindly and wholesome in a pure wool sweater. He looked like such a nice man. What about Roger Whittaker then? Edited: Just googled, Roger is still alive. I can get on with my day now. Edited by seaqueen at 8:27 am, Wed 19 May seaqueen - 2021-05-19 08:25:00 |
| 13 | Correction to my post #3. EQC Cover for the land includes the land under the house up to the 8m buffer and then the land under the driveway / access way. So in this case, if there were a major landslip and works had to be performed to secure the bank / hill for the future, that burden would fall on the home owner. The complexity then comes if that makes the house unrepairable as it would still be unsafe so the insurer couldn't rebuild even if they wanted to. In that case they *might* offer to help with that remediation, or more likely they'd look to pay you out indemnity value on the house, or offer to rebuild on another site (which you'd have to buy). sparkychap - 2021-05-19 08:31:00 |
| 14 | seaqueen wrote: Someone's got to make the chocolate. sparkychap - 2021-05-19 08:32:00 |
| 15 | And if anyone ever describes me as "kindly and wholesome" please shoot me.... sparkychap - 2021-05-19 08:34:00 |
| 16 | sparkychap wrote: cinderellagowns - 2021-05-19 09:48:00 |
| 17 | sparkychap wrote: Thanks for the answer you gave there sparkychap i found it interesting and informative. theo35 - 2021-05-19 10:08:00 |
| 18 | sparkychap wrote: apollo11 - 2021-05-19 10:17:00 |
| 19 | cinderellagowns wrote: apollo11 - 2021-05-19 10:19:00 |
| 20 | cinderellagowns wrote: She's always rabbiting on.... sparkychap - 2021-05-19 11:23:00 |
| 21 | apollo11 wrote: You're too kind, apollo. sparkychap - 2021-05-19 11:34:00 |
| 22 | theo35 wrote: cheers Theo. sparkychap - 2021-05-19 11:42:00 |
| 23 | sparkychap wrote:
And wholesome!!!!!!!!!! smallwoods - 2021-05-19 14:10:00 |
| 24 | A Wanganui couple came up against this scenario. Council red stickered the property, a lengthy sage has been endurd by property owners. This new item written 5 years on and was never resolved to their satisfaction. lyma1 - 2021-05-19 15:29:00 |
| 25 | Further item: lyma1 - 2021-05-19 15:32:00 |
| 26 | lyma1 wrote:
Just found this.... Run forest run kenw1 - 2021-05-19 16:38:00 |
| 27 | seaqueen wrote: bryalea - 2021-05-19 17:22:00 |
| 28 | bryalea wrote:
That's a wonderful story! Thank you for sharing :-) seaqueen - 2021-05-19 18:19:00 |
| 29 | If the landslip was a sudden event, EQC would be the first place to approach. They'd cover the land, and any damage to the home up to their limit. Outside of that, the insurer would get involved, and pay for any damage to retaining walls or the home. They will not remediate your land. However, if you purchased a home in a land instability area, and failed to disclose this to your insurer, they would have grounds to decline your claim. If the land subsided gradually, the insurer would decline the claim, gradual subsidence is excluded from the policy If the house was completely undamaged but the council decided to red sticker, or issue a section 124 due to safety, the insurer does not need to pay out. it is not their job to offer recompense for the actions of the council, and the policy would not respond unless there was actual damage to pay out on. each case however, is assessed on it's merits. phoenix22 - 2021-05-20 17:03:00 |
| 30 | ^ Great stuff. Thanks theo35 - 2021-05-20 18:33:00 |
