Canterbury homeowners fear cost of missed earthquake damage

Some homeowners who found damages have reopened claims with the EQC

Canterbury homeowners fear cost of missed earthquake damage

Insurance News

By Roxanne Libatique

Homeowners in Canterbury are worried that missed earthquake damage to concrete slabs in their homes might become an issue in the long term and therefore result in another big bill, RNZ reports.

The concerns follow EQC’s statement at Checkpoint that the cost of mis-scoped damage or defective repairs after the Canterbury earthquakes could cost up to $1 billion – with $450 million for botched repairs and $300 million for an ex-gratia payment to about 1,000 over-cap onsold homeowners.

Some who bought properties in the region after the earthquakes claimed that they had only discovered damages to their concrete slab foundations now.

Tracey Glass, a homeowner in the region, said she got a building report prior to moving into her property that stated there was nothing wrong with the slab aside from minor cracking in the internal garage. However, she was surprised at the property’s true condition when she renovated in June.

“We were contemplating maybe trying to sell this coming spring [and] decided to freshen up the ensuite,” Glass told RNZ.

“The floor layer came in and pulled up the existing flooring, and at this time the cracks in the foundations were discovered.”

She said the cracks spread over the floor like a spider’s web, with some wide and deep. Part of the slab under the shower had also collapsed and there were cracks down the hallway in a bedroom wardrobe.

Glass reopened the claim with the Earthquake Commission (EQC), with the slab being properly assessed in the meantime.

She added that the house is still liveable but she’s concerned about what could happen in the long term in regards to the house’s ability to withstand future earthquakes as well as its resale value.

According to Checkpoint, EQC wouldn’t supply the number of properties they’re aware of that had newly discovered slab damage as it wasn’t easily searchable.

Mike Richards, carpet layer in Christchurch, commented that those who have found cracks in their slab foundations that look like earthquake damage should immediately get in touch with the earthquake insurer.

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