Earthquake damage on rural properties – some useful things to know

Tavendale + Partners offers our support to everyone living in North Canterbury and beyond.  Below are answers to some commonly asked questions that could be useful to you as you work your way through the aftermath of last week’s earthquakes.  If you have any other questions which are not covered here, then please email us on earthquakes@tp.co.nz. One of our team will get back to you. 

Is our home covered for earthquake damage?

If you have bought insurance for your home, then you have earthquake insurance cover for your home and land. If you do not have home or contents insurance with an insurance company, you are NOT covered by EQC for earthquake related damage.

Is our business covered for earthquake damage?

If you have business insurance, or a farm insurance policy, then you will have cover under the specifics of that policy. Your business will not have EQC cover.

Exactly what cover does EQC provide?

EQC only covers personal assets, NOT business assets.  This diagram from EQC explains the detail:

For each earthquake event, EQC provides:

  • Home: up to $100,000 of cover. If the damage is more than $100,000, then your private insurance company will manage your claim.
  • Contents:  EQC provides $20,000 cover. If the damage is more than $20,000, then your private insurance company will manage your claim.
  • Land:  EQC provides the only insurance cover you have – if you have private insurance for your house.  The land is only insured where it is:
     
    • under your house;
    • within 8m, right around the house
    • your main way of access (such as a driveway) for 60m from the house
    • underneath key retaining walls or bridges or culverts within that 60m. 

If you do not have private home insurance your land is not covered by EQC.

Are the North Canterbury earthquakes of last week regarded as one or more than one event?

At the moment, the initial earthquake and all of the aftershocks count as a single event for EQC claims.  The insurance companies will advise if a second event is triggered.

What about fences or pools or other improvements near our house?

EQC does not cover these but your private insurer might.  It will depend on your specific policy so clarify with your insurer as soon as possible.

What about damage to our business and assets?

Damage will be covered only if you have purchased business insurance.

Business insurance falls into two main types of cover:

  • Physical damage:  referred to as “material damage”. This would normally cover your farm buildings and equipment. It might also cover livestock if you bought this cover.  To find out exactly what is covered, you need to contact your broker or insurer. 
     
  • Financial loss:  this covers financial loss as a direct result of physical damage to your property, affecting your ability to do business as usual. This is known as “business interruption insurance”. Your policy will have a formula for calculating the loss.  You will need to supply financial information later on.

Is our farm land insured with anyone?

No.  Other than the land cover provided by EQC for the land under and near a house, there is no land insurance in New Zealand.

Your fences and other farm infrastructure assets are likely to be covered by your business insurance policy.  Your broker or insurer can confirm.

What if we have several houses on our farm?

If they are all insured, then all houses are covered by EQC up to $100,000.

If a building is mixed purpose (eg a woolshed and staff quarters) then contact your broker or insurer. It might have EQC cover as a “dwelling”. 

The same $100,000 EQC cover applies to each house and the same contents cover of $20,000 applies to each house.

Is an empty section covered?

No.  If a section does not have a dwelling on it, then there is no land cover at all.

How can I find out more information about EQC?

For more detailed information about EQC cover, go to their website at http://www.eqc.govt.nz/ and download the Householders’ Guide which is on the homepage.

Do we have to lodge a claim with EQC and our private insurer?

Yes.  Make a claim with both.  They will talk to each other in the claim process but you need to let both organisations know you have suffered damage.  If you have a broker, talk to them and they will help you through this process.  Otherwise we suggest contacting EQC first, then  you can give your private insurer your EQC claim number.

Here is the link to the EQC page to make a claim:  http://www.eqc.govt.nz/claims/make-claim

The deadline for claims from the 14 November earthquake is 14 February 2017.

Your private insurer will have information on their website on how to make a claim.  The main websites for rural insurers are:

What should we do about paperwork and recording what has happened?

If it is safe for you to go into your home or office and get insurance records or accounts, then this would be a good idea.  We especially recommend taking photographs and even videos of your house and contents and emailing those photos somewhere safe.

If you have significant land damage near a house then we suggest you put some posts in the ground 8m from your home in all directions and take photos of this too.

Can we get on with repairing things?

If it is safe, and you need to make temporary repairs to get back into your home or keep your business running, then yes!  Do it.  But keep photos and write down what you are doing and why.  Then email it all through to your broker or insurer.

How long will it take for EQC and our insurer to deal with our claim?

Realistically, this will probably take months or longer.

The focus right now is on safety and getting access and supplies to those in need.  It will be some time before EQC and the insurers can look at damage and assess loss, then pay out on claims.

Can I rent another home to live in if ours is unsafe or uninhabitable?

Yes. You may have insurance to cover the cost of renting another house if need be.  But it will be for a fixed time and fixed amount.  Confirm these details with your insurer and be sure that you are clear as to your exact entitlement before you make plans.

Take your time, gather all the information and make a decision carefully.

What about paying my mortgage and my business loan?

We recommend speaking with your bank and accountant as soon as possible. 

T+P are here to help our clients.

Navigating the insurance process can be complex, as you may well know. We strongly recommend keeping notes about when you make a claim and all other dealings with EQC and your insurer.  It might just be handy later – even to refresh your own memory.

If there is anything we can do to help, at any stage, please call us on 03 374 9999.   If you have any other general questions relating to the earthquakes, or information that you think would be useful to others at this time, please email us on earthquakes@tp.co.nz

Tavendale and Partners + Cooney Silva Evatt

Two of Canterbury’s pre-eminent law firms today announced their merger.  Tavendale and Partners and Ashburton-based Cooney Silva Evatt will join forces from 1 October.

 Prompted by their shared strategic focus, this merger will undoubtedly raise the bar. The consolidated practice envisages adding further value for clients through its in-depth understanding of key sectors that drive the region’s economy.

 Tavendale and Partners has a longstanding reputation for its legal practice across the primary industries. The Tavendale name in particular is well known in agricultural circles throughout Canterbury, while Ashburton-based Director Andrew Leete leads an astute commercial practice.

 Cooney Silva Evatt is one of mid-Canterbury’s oldest law firms and arguably one of New Zealand’s leading provincial practices.  Also with a particular strength in the agribusiness and commercial sectors, the firm is known for exemplary advice, with Laurence Cooney remembered as one of Canterbury’s most respected legal practitioners. More recently Tim Silva and Tom Evatt have guided the firm through a period of significant growth.

 “The shared values, philosophy, and industry focus of the two firms provides the perfect platform for the merger. The combined expertise this partnership will bring to the mid-Canterbury region will be of strategic importance to our clients” says Mark Tavendale, Director of Tavendale and Partners.

 “Our evaluation of the benefits of joining forces has highlighted our respective and complementary capabilities and strengths” adds Tim Silva, Director of Cooney Silva Evatt.

 “A period of significant growth has prompted us to carefully consider the best way to continue delivery of exceptional client service in the strong traditions of our firm, but also reflecting that the environment we operate in is becoming increasingly sophisticated and specialised. Accordingly, we sought to partner with a firm with the range and depth of experience needed to deliver all of the core services that our clients need and deserve, while allowing us to build on our substantial mid-Canterbury agribusiness and commercial practice” said Silva.

 The merged firms will trade under the Tavendale and Partners brand, providing existing and additional services with fortified means and flair. 

For further information contact:

Mark Tavendale

Director

Tavendale and Partners

(03) 374 9999

021 221 0724

 

Tim Silva

Director

Cooney Silva Evatt

03 308 7412

021 505 137

Key issues discussed at industry event

Leading specialist law firm, Tavendale and Partners, created a dynamic discussion platform for its agricultural-based clients by hosting guest speaker Hon Nathan Guy, Minister for Primary Industries.

 Canterbury-based Tavendale and Partners has a depth of specialist legal expertise in agribusiness, commercial, and resource management law, so they were pleased to secure the Minister to address their guests at a forum on a number of topical issues.

 “Many of our clients and industry partners are involved or affected by the agribusiness sector, so to hear directly from our Minister about current issues was a rare and welcome opportunity,’’ said Mark Tavendale, Director.

 “We were also lucky enough to have a robust question and answer session with the Minister following his speech. This gave our guests the opportunity to get direct answers to the issues that are relevant to them, and to hear about the issues that their peers are dealing with.”

 Not surprisingly, a key topic of interest in the Minister’s speech was irrigation. The Minister offered an in-depth explanation of the Government’s investment in irrigation to support key projects getting off the ground.

 Minister Guy discussed water and river storage, and the environmental benefits that would have for the likes of Lake Ellesmere, which is anticipated to have 15-20% more groundwater flowing into it as less groundwater will be required.

 He also spoke about New Zealand’s efforts to reduce its environmental footprint and the Government’s investment in modern technology such as variable rate irrigation.

 During his address, the Minister covered the primary growth partnership and the work that is being done in research and development, including the Government’s partnership with the primary sector.

 In his generous overview, Minister Guy also discussed trade and market access, Maori agribusiness, and biosecurity – a topic that the Minister indicated was very high on his priority list.

 The question and answer session proved to be well-informed, wide-ranging and extremely beneficial for the audience and Director, Andrew Leete, was pleased that the firm was able to provide this opportunity for their guests to connect with one of New Zealand’s key policy influencers.

 “A great variety of questions were put forward to the Minister. Topics discussed included overseas investment in New Zealand, promotion of primary industries, the role of the National Animal Welfare Advisory Committee, and aligning regional councils,” said Mr Leete.

 Tavendale and Partners has already received great feedback from guests about the event and they hope to run similar sessions in the future.

Leading specialist law firm returns to the CBD

Canterbury law firm, Tavendale and Partners has signalled a return to the CBD with the announcement that it is the anchor tenant in a premium commercial development on the corner of Durham and Chester Streets. Comprising two three-storey buildings joined at the top floor by an air bridge, the development will be known as Tavendale and Partners House.

“Continuing to grow the commercial success of our clients has been our key consideration in choosing where our new Christchurch office should be,” says Director, Mark Tavendale.

“After reviewing all of the various options, both in terms of location and building, the decision was simple. This is a central location close to all the commercial banks and the soon-to-be revitalised commercial hub of the city and the development itself allows us to better accommodate the particular needs of our clients.”

“Many of our clients are involved in the agribusiness and commercial sectors.  They often don’t have an office in the city so we were adamant from the outset that we needed somewhere where our clients could  meet  with their various  business associates and advisers or simply deal with pressing matters if they arise”, adds Tavendale.

Boasting a Koru Club style business centre, Tavendale and Partners’ clients will have access to hot desks and meeting rooms, Wi-Fi and printers; not to mention a decent cup of coffee.

“Having spent the past three years in temporary space spread over two separate buildings, we have also been really conscious of the need to provide a great environment for our staff so we have ensured that there is lots of natural light and fresh air in the offices.”

The top floor opens onto balconies looking west over Cranmer Square and Hagley Park. There is also plentiful ground floor parking for clients and staff.

Property investor Richard Peebles of Peebles Group believes that having an anchor tenant involved early on in the design stages of a development is the difference between good space and exceptional space reflective of the needs of those who will eventually breathe life into the structure.

“It’s great to see a leading specialist law firm such as Tavendale and Partners choose to work with me on this site. It is a fantastic location for a law firm whose clients need to be at the heart of things. I look forward to seeing them shift into the office early in the New Year and to their clients enjoying such a great location.”

This is the fifteenth commercial building Peebles has developed since the earthquake.

Tavendale and Partners is scheduled to be in their new offices by March 2015.

Specialists in Resource Management Law Appointed

Alanya Limmer and David Caldwell, two of the country’s leading practitioners in resource management law, have recently been appointed to the Tavendale and Partners team.

David's and Alanya’s experience in resource management is both extensive and expansive, having represented private individuals through to some of the country’s largest commercial entities.  They have assisted clients in achieving success both in and out of Court – from non-notified consenting of large-scale developments to Supreme Court declarations.

Between them, David and Alanya have provided resource management and local government advice to seven different local authorities, both rural and urban. David is also a specialist in employment law and an experienced civil litigator with over 20 years Court room experience. 

Their combined skills further strengthen the depth of support available to our clients. Both will assume directorships on the internal Board.

Post Graduate Agri-tech Scholarship Announced

Research plays a critical role to this country’s understanding of the issues and opportunities facing the rural sector.  Tavendale and Partners are delighted to support both an industry and academic program that contributes to expanding the body of knowledge that contributes to the continued growth of New Zealand’s most important domestic and international industry.

To this end, we are pleased to announce a $6,500 annual scholarship for a post graduate student undertaking studies at Lincoln University with a specialisation in the invention and application of smart technology to Agriculture-related industries.