This is an important item because it contains an "opt-out" for EQC or Fletchers where they think there are issues unrelated to earthquake damage. These issues can arise from pre-existing damage (water damage in a "leaky home", wear and tear) and pre-existing construction defects (e.g. not up to code).
When will EQC make its final decision on how to settle my claim?
If your claim appears to be suitable for managed repair by Fletcher EQR, EQC will refer your claim to Fletcher EQR. If not, your claim will be cash settled.
But a referral to Fletcher EQR is not a final decision by EQC to repair your property. Further information may come to light during the Fletcher EQR process resulting in EQC deciding to cash settle part or all of your claim (for example pre-existing construction defects or ’leaky home’ issues) that are not insured under the Earthquake Commission Act 1993 (EQC Act).
EQC will only make a final decision to reinstate any part of a property with damage or issues not covered under the EQC Act when it commences or continues to repair the relevant part of the property with full knowledge of the particular damage or issues not insured under the EQC Act..