Updated 21 October 2013
Published 18 January 2013
If your house is assessed as being beyond economic repair and
you have replacement insurance cover, we will fully compensate you
for the loss of the house - by making a cash settlement payment or
rebuilding the house as provided by your specific policy.
Our obligation to you is to compensate you for the loss of your
house. Our obligation to our reinsurers (and the government)
is to offset our claim costs where we are able to and this is
traditionally done through salvage. As part of our settlement we
may exercise our right to remove anything of value before
completing demolition, effectively reducing many houses to a very
basic shell. In some cases we may also look to relocate
the entire house from the existing site.
This means two things when you sign a settlement agreement with
us for the replacement of your house:
- You cannot remove items or elements from the house without our
express consent - as we will assess whether we wish to salvage
before demolition. Any such action by you will effect
settlement of your claim.
- We will actively seek to recover the items or value for
anything removed from the house without our written
If you want to retain your house, please discuss this with us
before you enter into any agreement with a third party. We actively
seek to protect our salvage rights and require confirmation of the
habitability and structural integrity of any house that is not
demolished and intended for continued occupation.
It is not possible for an owner to retain a house in the red
zone, regardless of whether the owner has accepted offer one or
offer two from the Crown. Multiple owned properties (such as cross
lease or similar) and customers who have settled their claims with
Southern Response will not be considered for the Owner Retained
If you are considering making a request to Southern Response to
retain the house, there are a number of steps to be
completed. We can discuss these in more detail with you if
you want to consider this option.
- We need to be clear there is agreement between EQC and Southern
Response, and between you and Southern Response regarding the
claim and settlement
- We require an Arrow report and a structural engineer's report
on the property, with all recommended works completed
- An estimate of salvage value is required, which we
You will need to meet the cost of each of these reports, the
estimates to arrive at the salvage value and also pay the agreed
There are other things for you to consider, relating to your
temporary accommodation eligibility, future EQC cover and
settlements, house insurance and repayment of any costs we have
incurred to date to respond to your request. We will also
require future indemnification from you for any future action
regarding the property.
Please contact your Southern Response pod at the earliest
possibility if you are considering seeking to retain the house, so
we can talk through the requirements with you.