The impact of the Canterbury earthquakes continues to be felt, with the Earthquake Commission (EQC) starting to settle claims for land that is more vulnerable to flood following changes to the region’s topography.

About 9600 homeowners may be eligible for flood vulnerability settlements, and the state-owned insurer began sending out settlement packs last week.

The EQC says insurance for this type of damage is a world first.

The Insurance Council of New Zealand says increased flood vulnerability has not led to higher insurance premiums.

“We understand from members that to date there has been no significant increase in premiums for houses in the flood management area, although in some cases increased excesses may now apply,” a spokesman told insuranceNEWS.com.au.

Christchurch City Council has started a flood mitigation program that will take some years to complete.

The EQC says it prefers to settle claims by paying the cost of repairing land. If repairs are not feasible, it will offer a settlement amount based on the reduction in value of the property.

EQC Head of Canterbury Land Settlement Keith Land says the commission aims to settle all claims this year.

He says it has used extensive flood modelling, aerial ground scanning and thousands of site assessments to confirm each property’s increased flood vulnerability status.