Christchurch quake advice for owners of red-stickered homes recovering from floods

Adam Heazlewood, a top Bayleys agent in Christchurch, remembers the aftermath of the earthquakes as people dealt with green or red-stickered buildings (the sticker system was not quite the same as Auckland’s).

It was a bizarre time and sticker colour would sometimes change back and forth with the aftershocks.

He sympathised with North Islanders affected by the recent flooding, saying it’s common to feel unsettled.

In the housing market in Christchurch, an immediate problem was people trying to understand whether properties could be sold with the damage they had.

It took a while to define a pathway but Heazlewood says they were generally able to if the claim was assigned to the next owner who would work with the same insurance company or with the EQC.

“I could imagine that's what a lot of people (in Auckland) are going through right now and it wouldn't surprise me if something similar happened where if there's water damage to certain properties but people do have a need to move or relocate or whatever, perhaps - if it's possible and legal - those claims get passed over with the sale as well and the new owner would manage that.”

Auckland is a different city facing a different event so the system could work differently, and people would need to consult their lawyer, he says, and also agents may be finding their way.

“I can imagine all the real estate companies will be obtaining legal advice etcetera so they know they're looking after their clients and the purchaser, just so that everything is transparent and clean cut.”

Heazlewood says since the earthquakes agents have encouraged buyers to get their insurance approved before they purchase.

“I know in Auckland it's been a case of you can buy and worry about your insurance prior to settlement but I can see that will change now as well. I imagine people will want that surety beforehand.”

His advice to owners and sellers is to lodge an insurance claim, even if damage has been minor, adding some people in Christchurch were caught out.

“It’s a big thing that was learnt by the earthquakes. Some people were under the impression their house had no damage and they didn't lodge an earthquake claim but then years later when they've gone to sell and a building inspection took place or an engineer went through they found out they did but then it was too late to lodge a claim.

“The main piece of advice I have for people as if they've had any degree of water damage to lodge an insurance claim so at least they are covered.”

By Catherine Masters, OneRoof.co.nz