How to talk to your insurance
company with regard to floor levels,
and what questions you need to ask
them
Simple answer; They are interested in
reducing their liability through the least cost
to them, this does not involve raising floor
levels unless they are legally required to do
so.
Step 1
• Identify the calculated average ground level for
YOUR property from the CCC website
http://www.ccc.govt.nz/homeliving/buildingplan
ning/floorlevels/index.aspx
• Compare this with the calculated height for
flooding levels to identify if your property is at
risk of flooding.
• The calculated height for a 1 in 50 year flood in Southshore is
approx 11.41m above Christchurch City Datum and 11.46 for a
1 in 200 year event.
• North of Bridge St the 1 in 50 year flood height is estimated
lower between 10.7 and 11m respectively.
Sources for following information
• CCC Planner Patrick Schofield, Nathan
O’Connell
• Insurance – Rene Walker, IAG. John
McSweeney, Southern Response. David Ash,
Tower. John Bechel?, Lumley.
• Malcolm Macmillan, Department of Building
and Housing.
• Hugo Kristinsson, TC3 Residents group, SBRA.
What stage of the process are you at?
Assessment/
Apportionment
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Completed by EQC or
Insurers depending on if
over cap.
Geotech investigation
required on TC3 if
foundations damaged.
Under Cap can mean over
$100k damage but split
between claims.
If you believe you have
significant foundation
damage, undercap could
mean that EQC has
UNDER estimated the
damage.
An independent structural
report may identify
additional damage which
may push you over cap.
Building Work
Negotiation
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What is the motivation of
your insurer or project
managers?
Advice from CCC to
privately hire engineer
and or QS.
Potential of $100K’s vs
cost of lawyer at $1k’s
Have a support person at
meetings if not a legal
representation or a
builder/engineer
Advice from CCC
planning dept – check
that insurance will be
continued if raised to 150 or 1-200 year event
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If Project Managed you
will have signed to
permit them to act as
your agent. (owners
rights)
Insist upon building
consent where necessary
Invite insurance to assess
EQC work to ensure
eligibility for future
insurance
Do not sign off work
without absolute
satisfaction that floors
are level.
Who is managing your claim?
EQC
Private Insurer
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You will negotiate solution with Fletchers
Your claim is under cap or in over $100k
and has been apportioned between
several events.
Consider an Engineers report to ensure
that the assessment is correct that your
foundations are not structurally damaged
Get the insurance company to undersign
the repairs and confirm they will insure in
the future is one of the better strategies.
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You will negotiate with appointed Project
Managers
Comment from insurers; if your property
repeatedly floods they will refuse flood
liability, raise excess or completely refuse
insurance
Have a higher repair/replacement
standard than EQC
Advice from Insurers for homeowners in
FMA; Go with Insurance Managed Repairs,
check building consent requirements and
consider the risks of opting out/cash
settlement.
What Land Zone is your property on?
TC2
TC3
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This land is estimated as being more
resilient to future earthquakes and does
not require specific earthquake
strengthened foundations.
You are still at risk of flooding (check your
ground height)
You can use standard timber-piled
foundations for houses, with lightweight
cladding and roofing and suspended
timber floors or enhanced concrete
foundations.
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If you believe that the damage to your
foundations have been UNDER VALUED
you may be eligible for RED CROSS
support to commission an engineers
report on your land.
Each TC3 site needs to have its own
geotechnical investigation. Engineers will
use this information to design specific
foundations for your home.
In this area deep piles are not practical.
Early indications are that lightweight
house, wooden floor on piles sitting on
lightweight Firth Slab is possible solution.
What sort of damage do you have?
Minor
Major
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• Cracking in ring foundation
>5mm
• Lateral stretch > 20mm
• Pile tilt > 15mm per 1metre
height
• Sunk >50mm and Slope > 1 in
200 between any two points
>2m apart
• BUT measure from council for
consent req is percentage
damage opposite.
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Repairing Minor damage does not require
building consent and therefore does not
trigger a legal requirement to raise floors
Cracks in concrete can be sealed with
resin, Piles can be straightened.
Floors can be jacked and packed to a
maximum of 100mm
Definitions of damage can be found in the
Dept of Building and Housing guide at
http://www.dbh.govt.nz/UserFiles/File/Pu
blications/Building/Guidance-information
20% damage to Piles
49% damage to slabs
Minor repairs will not result in a Hazard
Assessment undertaken on property.
What type of foundation do you have?
Timber Frame and
Piles
Timber Frame on
Concrete Slab
Brick/Block on
Concrete Slab
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Minor repair - House
can be lifted/jacked
and piles straightened,
ring foundation jacked
and packed up to
100mm.
If major repair on
foundations new FFL
could be upto 1m
higher than current.
Raising ground level
around property
=1.8m width is
necessary to avoid
Hazard notice. Same
for all foundation
options
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Minor repair - House can
be lifted/jacked.
Concrete slab repaired,
cracks sealed.
It maybe suggested to
you that damage to your
foundations was preexisting.
Concrete slab could be
releveled but will not be
raised.
Major repair would
involve the demolition of
slab, removal and new
foundation to 50 year
FFL.
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House cannot be
lifted, if major repair
to foundations will
result in complete
house rebuild at new
FFL.
Minor repair will stay
at existing level.
Existing Use Rights
Existing Use Rights Applied
• FFL must be raised to 1 in
50 year FFL
• Upto 25m2 can be added to
footprint of building.
• Building can be moved or
re-aligned on the section.
Not Applied
• A rebuild will require
resource consent and will
therefore be required to be
raised to full CCC FFL –
11.8m
What is the solution suggested for
your home?
Repair
Rebuild
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Possible that repairs will be made without
raising the level of the property.
Could be a new raised foundation with
existing house lifted and replaced.
Damage indicated in the DBH guidelines does
not necessarily trigger the need for consent.
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http://www.dbh.govt.nz/UserFiles/File/Publications
/Building/Guidance-information
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Owners decision or the owners agents to
apply for building consent.
Council set the amount of damage necessary
to require consent – > 20% damage to piles
or >49% damage to slab.
If consented - 1.8m around house must be
raised through piles or land remediation to
avoid hazard notice
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New house will be raised.
A rebuild will require building
consent in the least even if the
Existing Use Rights are utilised.
If through raising the house new noncompliance is created, resource
consent will be required and the
higher FFL will be necessary.
A hazard assessment will be
completed on property.
1.8m around house must be raised to
avoid hazard notice see opposite.
Advice from MBIE
(formerly Dept. Building and Housing)
Summary
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Check your ground level
Check the amount of damage to foundations
Insist upon building consent
Familiarise yourself with Hazard Risk and the
additional design necessary to avoid Hazard
notice on Property.
• Consider a second opinion if;
1. Foundations are deemed repairable
2. You are told the repairs do not require building
consent