New Zealand’s Earthquake Commission (EQC) hopes to begin telling homeowners whether their properties have suffered from increased liquefaction vulnerability (ILV) before the end of this month.

The 2010/11 Canterbury earthquakes affected large areas of residential land, making some properties more vulnerable to liquefaction damage from future events.

It is the first time this type of land damage has been recognised as an insured loss.

“Customers will first find out whether their property qualifies for a settlement for ILV land damage, because the qualification assessments for all potential properties are close to being finished,” EQC Head of Canterbury Land Settlement Keith Land said.

“We expect this stage will be completed by early [next year]. Once a settlement decision has been made for properties that qualify, customers will then receive a full settlement pack, with detailed information on the amount of payment and what it is based on.”

The EQC will not repair ILV damage but will settle by cash.

The settlement will be based on repair cost and/or reduction in market value.

The most difficult group of settlements will be properties that suffered both ILV and increased flooding vulnerability.

“We recognise that our customers have been waiting for a long time for ILV settlements to begin,” Mr Land said.

“Developing our settlement approach... is complex work and has taken time.

“We want to make sure we get it right and that homeowners have confidence all properties have been assessed consistently and fairly.”