New Zealand property buyers who discovered their Canterbury homes needed additional unexpected earthquake-related repairs above a Toka Tu Ake EQC statutory cover cap have been given until September to formally opt in to a class action. 

Grant Shand Barristers and Solicitors says many people purchased on-sold homes after relying on earthquake damage settlement information. The class action seeks to compensate those who then discovered further repairs were needed that took the cost above the statutory cap, and where private cover for the entire loss was unavailable. 

The Government introduced a $NZ300 million ($278 million) Crown On-Sold program, administered by Toka Tu Ake EQC, for shortfalls, but homeowners have to do their own repairs and be reimbursed where they meet certain criteria, and it also requires a covenant on the land title, the legal firm says. 

“We don’t believe that homeowners should have to go through the stress and inconvenience to rectify what are EQC’s failings,” counsel for the representative plaintiff Grant Shand said. “Also, these homeowners should not be restricted by the Government On-Sold program that is administered by EQC; they should be able to receive a cash payment if that is their preference.” 

The class action, Mathias v The Earthquake Commission has been filed in the High Court. It was approved last year but with the opt-in process still to be determined. Potential participants have until 5pm on September 22 to opt in. 

Toka Tu Ake EQC Chief Readiness and Recovery Officer Kate Tod says if customers have concerns about unrepaired earthquake damage, it's recommended they contact the organisation directly to see if their concerns can be resolved now, outside of the class action. 

"Customers in the Crown's on-sold scheme, which provides for payment of the full cost of repairs, can continue progressing through that scheme," she told insuranceNEWS.com.au. "Toka Tu Ake EQC may also meet over-cap repair costs for customers outside the Crown's on-sold scheme in some circumstances."