Rural property and natural disasters...

January 25 2017

Rural property and natural disasters...

The Kaikoura earthquake late last year is a timely reminder to check you’re prepared for a natural disaster. As another region with fault lines, it pays to be ready, but there’s much more to earthquake preparedness than storing water, food and batteries. Here are some points to consider in the wake of the Kaikoura shake.

1. Review your insurance on a regular basis

Natural disasters are catalysts for insurance companies to make swift changes to terms and conditions, or even your ability to be insured. Some insurance companies have placed embargoes on new insurance policies from Canterbury to the Bay of Plenty. This will effect people looking to buy property within these areas, so talk to us if you’re considering a purchase. Make sure you read your insurance documents, especially when you renew your policy.

2. Banking drawdown of lending facilities

Some banks have introduced additional requirements for borrowers as a pre-requisite for drawdown of funds in various specified areas around New Zealand. This can include a requirement for a pre-purchase inspection and/or full structural report.

3. Settlement

If you have already signed a conditional or unconditional agreement for the sale or purchase of property in areas affected by the earthquakes, please get in touch with us as soon as possible to discuss the possible implications for your settlement.

4. Employment obligations in times of natural disasters

Many business have been and will continue to be affected by the recent earthquakes. This causes complications for both employers and employees. It’s important to remember that the notion of good faith underpins all employment relations. Remember many employers and employees will be under significant stress and pressure.

Take time to check the terms of your employment agreement for provisions relating to extraordinary events. If there are any areas of concern, or if you need clarification, contact our legal champions straight away.

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