What is EQC and how does it work?
- Mar 4, 2024
- 2 min read
Updated: Mar 13, 2024
It can get pretty confusing dealing with EQC and your insurer and trying to work out who does what. I've been helping people run the claims against EQC and insurance companies since 2014, so here's a short explainer on some of the basics:
EQC insures your land and your house.
Your insurance company only insures your house.
To properly understand how this all works the first thing to do is to separate the information about your insurance claims into two different headings: “Land Damage” and “Building Damage”.
Land Damage
EQC insures damage to your residential land. There are some quirks to it, but essentially residential land is the land that sits under your house and the land within eight metres of your house. EQC does insure other land but I'm just trying to keep this really simple in this article.
EQC settles claims for land damage by paying money. The amount of money that the EQC will pay is either:
The value of the land affected or
The cost to repair the damaged land.
Whichever is cheaper.
Building Damage
EQC pays for the first chunk of the repairs if your home is damaged in a natural disaster. The amount that EQC must pay depends on when your insurance policy was last renewed. Don't get too bogged down on that issue. Basically, EQC must pay either $172,500 or $350,000 to fix your house. Those amounts are what is known as the “EQC cap” for a building claim. The EQC cap is the most that EQC will pay to fix your house. If it costs more than the EQC cap to fix your house, then your insurance company pays the amount over the EQC cap.
The most your insurer will pay to fix your house is the sum insured. The sum insured is noted on your insurance policy schedule and the document that your insurer sent you with the invoices to pay your insurance premiums.
Summary
Although it can be a bit complicated, remember to separate your claims into “Land Damage” and “Building Damage” and to think about the four questions:
What is the damage?
How do you fix it?
How much will it cost?
Who pays?
Give us a call 021 225 7316 or an email andrew@dempseyferguson.co.nz or complete the form at www.dempseyferguson.co.nz if you need a hand with your insurance claim.
EQC explained finally. As a PhD student who works part-time at Last-Minute Assignments, I'd seen the acronym but never understood it. I was so lost that I'd think, Just do my engineering assignment so I can focus on this. Your post is a clear breakdown. Thank you for that. Purpose, process, benefit. Grateful for the clarity. Keep demystifying. Seriously, my knowledge just grew. Here's to understanding the system. Thanks for the lesson. Cheers.
I looked into this article and it explains EQC in a simple way, showing how it helps cover damage to homes and land when natural disasters happen in New Zealand. It also makes it clear that insurance is split between EQC and private insurers, so both play a role in protecting property. While studying topics like this during a busy semester, I used do my assignment so I could keep up with deadlines and still understand real-world systems like insurance. It reminds me how important it is to understand how protection systems work before you actually need them.
The post explains EQC (Earthquake Commission) and how it helps cover damage to homes caused by natural disasters like earthquakes in New Zealand. It clearly outlines what is included in the cover, how claims work, and when private insurance steps in for additional protection. I remember learning about disaster insurance basics in a class discussion and realizing how important these systems are for recovery after emergencies. I had used assignment help for engineering students during that period while managing a heavy study workload, which helped me stay organized. It reminds me that understanding protection systems in both insurance and life planning is really important.