Buying or selling a home with previous claims :: Natural Hazards Commission Toka Tū Ake

When house-hunting, alongside investigating previous claims you should:

Understand the natural hazard risk profile of the property and identify any potential issues.
Make sure you've done all the necessary checks before you make an offer.

Search for previous claims on the Natural Hazards Portal

The Natural Hazard Portal claims map shows all settled EQCover and NHCover claims on properties in New Zealand from 1977 onwards. This information is freely available.

You can search the property address on the claims map(external link) and it will show you whether a claim has been settled, and what type of claim it was.

If a property shows a settled claim this is not always a cause for concern. It could mean:

the property was damaged by a natural hazard and repairs were made to restore it
the building was demolished and rebuilt to appropriate standards, making it stronger and more resilient to future natural hazards
work was done to lessen the impact of future natural hazard, such as building a retaining wall to hold back a potential landslide.

Properties without a claims record could still have natural hazard damage. The damage may not have been identified, or it could have been fixed at the owner’s expense, without submitting an insurance claim.

Request claim information

It’s important to know whether a home you’re buying or selling has had previous natural disaster damage, and whether this has been properly repaired. Anyone can request claim information on a property from us.

Requests for claim information on a property are considered an official information request and can take up to 20 working days. You can make a request for claim information using our online form.

Learn more about requesting information including how long it might take, and the types of information we can provide on our Request information page.

Sellers or their agents can request claim information

Potential buyers will want to see any documents you can provide relating to any previous natural hazard cover claims, including the damage that was assessed and the status of any repairs.

Request these documents from us before putting your home on the market so they are available for prospective buyers. Your lawyer or real estate agent can also make this request for this information on your behalf.

Buyers can request claim information

If you are considering buying a home, it’s very important to ask the seller or the real estate agent if it has had any previous natural disaster damage. You can ask for copies of the documents that relate to the damage that was assessed and the status of the repairs. This is an important part of your due diligence when purchasing a home in an area that has been impacted by natural hazards.

If the seller is unable to provide the correct documents, you can make a request for claim information from us. Your lawyer or real estate agent can also make this request for information on your behalf.

Assignment of claims

When buying or selling a property that has an EQCover or NHCover claim, the claim can be transferred to the new homeowner. Once a claim is transferred, the new homeowner will have the same rights and benefits as the previous owner. The rights and benefits of the claim refers to any remaining settlement for natural disaster damage to the buildings and land that are covered by us.

This process is called an assignment of claim, and is commonly done using a document called Deed of Assignment. Other situations such as change in a relationship, or the homeowner passing away may also result in a requirement to transfer the rights of a claim.

Exactly what is assigned to the new homeowner will depend on what is outlined in the Deed of Assignment and any relevant provisions in the private insurance policy.

When a property is sold without claims being assigned to the new owner, any rights and benefits of that claim remain with the previous owner of the property. If a property is sold multiple times without assigning the claim to the new owner, the transfer of claims must start from the original owner, pass through each subsequent owner, until it is transferred to the current homeowner.

Properties with settled claims

When a property has a settled EQCover or NHCover claim, the rights and benefits of that claim should be transferred to the new homeowner.

Homebuyers should find out whether repairs associated with a settled claim have been completed. Any funds already settled to a previous homeowner will remain with the previous owner, unless they are transferred to the new owner as a part of the sale and purchase contract.

If any previous homeowner failed to use their settlement funds to complete the repairs, the new homeowner won’t be entitled to any additional settlement from EQC for that damage.

A homeowner might reopen a settled claim on a property if:

additional natural hazard damage that was missed in the original claim is discovered,
repairs managed by NHC Toka Tū Ake did not meet statutory replacement standards (only for Canterbury claims that had managed repair).

To re-open a previously settled claim following a property sale, the new homeowner will need to provide expert reports relevant to the claimed damage that they received after they purchased the property.

Properties with unsettled claims

When buying or selling a property with an unsettled EQCover or NHCover claim, the rights and benefits of the claim should be transferred to the new homeowner.

It is important to note that just because a claim has been lodged, there is no guarantee that we will accept the claim. Sometimes issues with the claim aren’t identified until after the claim is lodged. Because of this, we strongly recommend you seek legal advice when purchasing a property with an unsettled EQCover or NHCover claim.

As with all claims, there is a maximum amount that we can pay. The cost of fixing the natural disaster damage might exceed the limits of our natural hazards insurance cover.

The seller should contact their insurer to find out what, if any, insurance entitlement the new homeowner might receive. If the private insurance claim can also be assigned to the new homeowners, they may not have the same entitlement as the original owner, or any entitlement from the private insurer at all.

The buyer should confirm there is no missed damage – and where there is, address this with the seller (using their private insurance policy coverage if relevant) before the sale. If repairs have not been completed, the buyer may be unable to get private house insurance, or NHCover for future natural disasters.

The excess is paid by the homeowner

All natural hazard insurance claims are subject to excess. This is taken out of the settlement amount that is paid to the homeowner for their claim. Any agreement in the Deed of Assignment on who will pay any excess will not change who NHC Toka Tū Ake invoices.

How to assign a claim

Both the seller and the buyer should seek advice from a lawyer about assigning claims, and talk to their insurer. Insurance companies might have different requirements for what documents are required.

The documents usually used to assign a claim are either a:

clause in the sale and purchase agreement
document called a Deed of Assignment (DOA).

Information required for a Deed of Assignment (DOA)

The most common document used to assign an EQCover or NHCover claim to the new homeowner is a Deed of Assignment (DOA).

A DOA should include the:

address of the property being sold
date of the DOA
date that the DOA takes effect
full names of all the current owners(s) and new owner(s)
contact details of the purchaser
signatures of all assignors and assignees which must be witnessed
claim numbers.

There is often more than one claim associated with a property. If all claims are being assigned, please list them all. If only certain claims are being transferred, then please only list those.

When a party is a company, the Deed of Assignment must be signed in accordance with the relevant legal requirements.

Optional clauses

It can be useful to include a clause in your Deed of Assignment requiring the seller to assist in the completion of a claim. We encourage you to discuss this with your lawyer.

Information on settled EQCover or NHCover claims is not included when assigning a claim to the new owner. If the buyer wants to receive information on settled claims when they purchase the property, the seller can agree to this information being shared. A clause can be added to the DOA stating this.

Variation in names

If the name of the original claimant and the name on the insurance policy are different, the reason for this must be recorded on the DOA. For example, if the original claimants owned the property under a trust and insured the property in the name of the trust, the Deed of Assignment should record this fact to avoid confusion.

Common terms used in a DOA

Vendor – the person(s) who owns and is selling the property.
Purchaser – the person(s) who is buying the property.

Assignor – The person who is transferring their rights to the claim. Usually this is just the property owner(s), but in some situations there are other people with an insurable interest in the claim who need to give their approval of the transfer.
Assignee – The person who is receiving the rights of the claim.

Original claimant – the person who lodged the claim.

Where to send DOA documentation

To transfer a claim, a copy of the DOA should be sent to:

your insurer
the Natural Hazards Commission Toka Tū Ake by email at info@naturalhazards.govt.nz or by post to NHCover Claims, PO Box 311, Wellington 6140.