Earthquake Rates Relief - CCC double dipping? Part 2
In the Backround section of their rates relief page the Council justifies a partial remission of rates in this way:
Depending on who your insurer is there may be a problem coming up. For example, if you have a contents policy with AMI there is a section headed Temporary Accommodation where Clause 1, part b. says
It is possible/likely insurance companies will classify the rate component of rents to be "normal household expenses" and deduct it from the compensation paid. The fact that the Council has already dipped its hand into your pocket may not sway the insurer.
To summarise it would appear that the Council wants 60% of the rates to be paid, figuring the insurer will provide full alternative accommodation. The insurer may not pay the rates component of accommodation costs because these are classified as normal household expenses.
I have asked the Council whether they have checked with all insurers to see if the accommodation support they provide includes a component for rates. I am also exchanging e-mails with AMI over this.
Will keep you posted and, again, if I've missed something fundamental here, please let me know.
Christchurch City Council does not normally waive or remit rates payable on properties damaged during a rating year, such as by fire. This practice is based on the fact that rates are legally payable and that insurance cover provides alternative accommodation for the owners/occupiers of that property.
The silent assumption in this statement is that insurance cover for alternative accommodation will not be subject to any reduction for the rating component.
Depending on who your insurer is there may be a problem coming up. For example, if you have a contents policy with AMI there is a section headed Temporary Accommodation where Clause 1, part b. says
"We will deduct your normal household expenses from the amount we pay you."
What are these normal household expenses?
To summarise it would appear that the Council wants 60% of the rates to be paid, figuring the insurer will provide full alternative accommodation. The insurer may not pay the rates component of accommodation costs because these are classified as normal household expenses.
I have asked the Council whether they have checked with all insurers to see if the accommodation support they provide includes a component for rates. I am also exchanging e-mails with AMI over this.
Will keep you posted and, again, if I've missed something fundamental here, please let me know.
