The Insurance Council recently released figures that show 85% of home claims for the July flooding in Westport are fully settled, or near completion, and that half of these claims were cash settlements.
We have published this article before but it is an important issue worth repeating:
If you have had repairs done to your home you must ensure that any red or yellow sticker classifications are removed from your property record, or risk significant issues in the future.
This is relevant whether your insurance company manages your repairs, or you manage your own repairs with your cash settlement.
If you are returning to your home after repairs you need to check that any red or yellow sticker classifications are changed to white on your property files. It is an easy process and there is no cost. The licensed builder, electrician, or plumber carrying out the repairs, or your insurer, should complete it for you – however as the homeowner the onus is on you to check that this is done.
See this page on the Buller District Council website detailing the process.
What happens if you do not remove red or yellow stickers from your property record?
Removing red and yellow classifications from your property record shows the Council, insurers and banks that your repair work has been carried out to an acceptable standard.
Darren Wright, from the Residential Advisory Service (RAS), the Government Agency supporting residents through the insurance process, says if either of these classifications remain on the property record it could create significant insurance problems in the future.
“If you want to sell your property, or if your insurer requires a full property valuation for a fixed-sum insurance policy, it is important to have a property record that is clear of any red or yellow classifications. Insurers are not likely to cover properties that have repairs that have not been signed off.
“A property record that has outstanding red or yellow classifications could hold up the sale of your property while you try and find old documentation, or scramble to have work done. It could also mean that you are limited to only cash buyers, as banks may only lend on insurable properties.
“So, removing a red or yellow classification now could save you a lot of time effort, and stress in the future.”
Remember All work must be signed off by a Licensed Building Practitioner and the record of works submitted to Council on completion to remove a red or yellow sticker on the property house.
All electrical work must be signed off by a registered electrician and a Code of Compliance supplied along with the Licensed Building Practitioner record of works submitted to Council.
If you are unsure about the process please either call in to see one of our Navigators at the Flood Recovery Hub (0800 867 348), or call the Council for advice.
Whatever you do don’t ignore it – get it sorted!
Don’t sign off repair work you are not happy with!
As a homeowner you need to be confident that the repairs to your home are up to the standard required. Removing Red or Yellow stickers from you LIM is important, but you should not sign-off work you feel is substandard or incomplete.
If you are unsure, or are feeling pressured to sign of work that you are unsure about get a second opinion from a trusted building professional, or contact our Navigators at our community Hub.