Westpac Home, Contents and Vehicle Insurance Frequently asked questions:

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1 Westpac Home, Contents and Vehicle Insurance Frequently asked questions: I have already made a claim for damage; if my property suffers additional damage from another aftershock do I need to claim again? Yes, if you have new earthquake damage you must lodge a new claim with the Earthquake Commission (EQC). You can call them on 0800 DAMAGE ( ). Please also contact Westpac Insurance as soon as possible. Temporary Accommodation What assistance is provided under the Temporary Accommodation Benefit? The Westpac Home Policy cover for temporary accommodation provides the following cover: Temporary accommodation benefit Moving contents to a secure storage facility and for storage costs while you are in temporary accommodation and return them to your home Boarding your domestic cats and dogs normally kept at your home We will pay the temporary accommodation benefit for up to twelve months from the date of the loss, up to a maximum $20,000. Can I use my temporary accommodation allowance outside of Canterbury? The temporary accommodation benefit is calculated on the accommodation costs in the Canterbury region. Where you wish to relocate outside of the Canterbury region we will be happy to consider your request however you need to be aware that the benefit calculation will be based on as if you had remained in the Canterbury region. Please call us on to discuss your needs. Will you pay for airfares for my family to relocate? The policy does not cover relocation costs. However, we may consider some reimbursement where the travel is used to take up accommodation offers that will result in a total cost which is similar or less than what would have been incurred by staying in Christchurch. Please call us on to discuss your needs. Any costs incurred will form part of the temporary accommodation benefit. My home has been rendered uninhabitable; will you pay for me to hire a caravan? We will cover any reasonable costs for alternative accommodation. Please call us on to discuss your needs. When does my temporary accommodation benefit cease? The benefit ceases on the earliest occurrence of any of the following: The expiry of 12 months from the date of loss; or Your claim under this benefit reaching the $20,000 limit; or The property becomes habitable once again; or We make a cash payment to you for the damage to your property. The policy provides temporary accommodation cover for a maximum of 12 months from the date of loss. However, we may consider extending this period on a case-by-case basis where you have remained in your damaged house to minimise temporary accommodation costs. Please phone us on to discuss how this may apply in your case. The property I rent is uninhabitable and I have no damage to my contents. I am unable to pay a bond for a new rental property, will you assist? We will pay for reasonable costs for alternative temporary accommodation. Any refundable bond from the alternative temporary accommodation would need to be repaid to us at the end of the rental period.

2 What happens if the repairs or rebuild isn t finished by the time my temporary accommodation cover limit is reached? The amount of temporary accommodation cover provided by your policy is limited to 12 months or $20,000. It is therefore possible that this amount may not be sufficient to cover the total cost of temporary accommodation incurred prior to you being able to move back into your property. Any amount incurred in excess of the cover limit will have to be paid by you. Wherever possible we will give priority to the repairs/rebuilding of damaged properties where the temporary accommodation cover limit may be reached. Can I cash settle my temporary accommodation allowance? Whilst your policy doesn t allow this, it may be considered on a case-by-case basis. Please contact us to discuss. I am staying with relatives; can I claim temporary accommodation allowance to pay for my share of expenses? We may consider requests for a contribution to the additional costs of utilities, such as electricity. Please call us on to discuss. Will you provide insurance cover for my contents if I move them from my damaged property to a secure location? Provided the house/storage facility is of a standard that is normally acceptable to us (secure and weather proof), we will continue to provide cover. You are required to inform so we can ascertain if the storage facility meets our requirements. Your policy also provides cover for temporary storage and transit to and from storage so please call us on to discuss. Retaining Walls Is my retaining wall covered? Your insurance policy with us does not cover retaining walls. However, there is limited cover provided by the EQC. General items My tenants have vacated my rental property due to the home being uninhabitable. Will you cover my loss of rent? Yes, but only if your policy is endorsed showing the property as being tenanted. We will require a copy of the tenancy agreement to assess your claim, please contact us on to discuss. How will you decide if my property can be repaired or if it needs demolishing and rebuilding? We will complete a thorough assessment of the insured damaged property. This assessment will be undertaken by our expert team comprising of a builder, an assessor and quantity surveyor/ valuer. We will then be in a position to determine the cost to rectify the earthquake damage to the insured buildings. If it is determined that the cost of repairs is approximately the same as the rebuild price then it is likely that your property will be considered uneconomic to repair. If this is the case then the assessor, together with the builder, will explain how this was determined and the implications. What if I don t agree with the decision to rebuild or repair? The decision to rebuild or repair will not be made without being fully discussed with you. If you do not agree with our assessment then you will be able to bring in your own specialists to review this. Who is responsible for fixing my land? Your policy provides no cover for damage to land. The EQC however, does provide cover for land, with certain limitations. You will need to contact the EQC to discuss any issues you may have with damage

3 to your land. Where it involves minor repairs to land to enable repairs or rebuilding then we will work with the EQC to help facilitate this. There is cover under your insurance policy for paths, fences, in-ground swimming pools and driveways (see conditions in the policy) that have been damaged. Outside of this, any compensation for loss of your land or compensation for remedial work to the land will need to be discussed with the EQC. What happens if I don t want to build or repair my home until I m sure that the aftershocks are over? Will this complicate my claim? We will not start work until we are satisfied that it is safe to do so. Who will pay the cost of landscaping for my property? Your policy provides cover for landscaping to a maximum limit of $2,000. How does cover apply for patios? Your policy defines what is covered and includes patios. EQC cover would apply in the same way the dwelling is insured. Are my curtains, carpets and the like insured under my house or contents policies? Curtains, drapes and carpets that are not glued in place are part of your contents insurance cover. What if the curtains don t match with the design of the new property? If your house is being rebuilt then in most cases the curtains and drapes will be included in the specification of work and will therefore be included in the assessment of your contents insurance claim. If we insure your house but not the contents then this will be discussed with you so you can discuss this aspect with your contents insurer. What should I do with the payment from EQC for my House? This payment will need to be applied to the overall cost of repairs or to the rebuilding of your house. Therefore, at the time repairs or rebuilding commences you will need to pay this to us plus the excess EQC deducted. For example, if you received $115,000 less the 1% excess then the full $115,000 would be payable. In some cases where damage to the property has occurred in both quakes there may be a second payment due to you from the EQC for a further $115,000 less the 1% excess. The amount payable by the EQC is not covered under your insurance policy. This is so you are not insured by two parties at one time for the same loss (EQC and ourselves). What happens to the payment from EQC for my Contents? The EQC payment for contents damage is for reinstatement of your contents. Any payment by us for your contents will take into account the amount (including the excess) of the EQC payment. As with your house, the amount payable by EQC is not covered under your insurance policy. This is so you are not insured by two parties at one time for the same loss (EQC and ourselves). I have already had an excess deducted by EQC, will you also be applying the excess under this policy from my claim? The excess under your policy will be deducted from your claim. This is in addition to the excess applicable from EQC. Will I have to pay for non-earthquake wear and tear damaged areas of my house when it is being repaired? If during the assessment of your property, it is established that some damage is the result of nonearthquake related events (such as water damage) then this will not be included in the assessment. If remedial work is required and this improves the property in areas where damage or wear and tear had occurred then it is probable that you will need to make a contribution to the cost of repair.

4 Who is responsible for the security of unoccupied properties? What if further damage occurs such as vandalism, theft or arson? The owner/occupier is responsible for the security of the property. If the home or contents are damaged by a separate event (such as vandalism or theft) then these will be regarded as a different claim and will be assessed accordingly. It is important to maintain security over the property even if it is not habitable. The policy has a clause where cover suspends if the property is unoccupied for more than 60 consecutive days and you have not notified us of this. As the policy holder, you will need to advise us that the property has been vacated in order that your cover can continue. Can I have access to the Assessor s or Engineer s, or EQC reports? In most cases these reports will be available, but not in every case. Sometimes reports are provided to us on a confidential basis on the understanding that they are not for release to anyone else. If you would like to see a report then you should ask us for this or discuss it with the assessor. In some instances you may need to ask us formally by sending a written request. You do have the right under the Privacy Act 1993 to request access to your Personal Information. Generally there will be little to no Personal Information contained in the reports. However, if you make such a request we will consider it in accordance with the Privacy Act provisions. Rebuilding When will repairs or rebuilding commence and how will this be coordinated and by whom? With so many properties damaged it is important that work to repair/rebuild is started as soon as possible. Properties with more significant damage will be the first priority provided the condition of the land enables work to commence. How do you know if the land is safe to rebuild on? Geotech engineers appointed by the EQC are completing assessments of properties. Properties will then be put into various classifications which will provide us with the information needed to help determine if land is able to be reused, and if further stabilisation is needed. Will the new property be insurable and, if so, what conditions will apply in regarding to any future earthquakes? We will be happy to insure you and no special conditions will be applied in regard to earthquake. What will happen if repairs are made and aftershocks cause further damage? These will be regarded as new claims and assessed accordingly. Can repairs or rebuilding commence on a property where it is clearly over the EQC limit of $115,000 but has not yet been seen by the EQC assessor? In most cases repairs or rebuilding is not able to commence until the EQC has inspected the property. However the EQC have visited most seriously damaged properties and we can endeavour to have EQC teams visit if this is delaying the start of remedial work. What happens if I do not want to rebuild and instead want a cash payment? Your policy provides three options, namely to have the house rebuilt on the current site, on another site or to have a cash payment. If a cash payment is preferred, then the cover under the policy reverts to Present Day Value cover. This means we will pay the depreciated value less the value of the land and less the amount EQC has paid. In addition, we will pay or reimburse you for the cost of demolition and removal of debris. Please note that we are obliged to make cash payments to your mortgage lender (if applicable). If the house needs rebuilding then do I get a say in the plans and construction quality?

5 Your insurance policy covers you for the costs associated with rebuilding your home and outbuildings. The design of the rebuilt property will be based on the existing dwelling. However, we are willing to look at changes to this design providing the cost is no more than it would have been for the reinstatement of the same size and style of property that previously existed. If you would like to make changes then please let the assessor or our claims staff know of the changes as soon as possible. What say do I have in the design of the new property? You will be able to have input into the design of the new property. If you wish to make changes then this can be done providing it costs no more than the original design of the property. If you wish to make the changes which would incur additional costs, then we would be willing to consider this on the condition you meet all extra charges and costs. If I wanted to upgrade the quality of the home, am I able to do so and if so then how do I arrange this? You will have the opportunity to look at the plans for the rebuild and make changes to these. If this means that the cost of the rebuild exceeds what it would have cost for a similar construction to your existing property then you will be required to contribute the cost for the additional amount. Do I have to use the builder that you have selected for the repairs or rebuild or can I choose my own builder? We have appointed Horncastle Homes and Benchmark Homes as our preferred contractors as they have the capacity and experience to assist with the large number of properties we insure that have been damaged in this earthquake. Under the terms of the policy the option to reinstate the building(s) is ours. We can do this by rebuilding or by payment of the cash equivalent. The choice of the repairer or builder is also ours. However, we may be willing to consider alternatives provided it does not add further cost. Do I have to reuse the materials and existing appliances on my existing house in the rebuild? It may be cost effective to reuse undamaged materials and/or appliances from the existing home. We will explore and discuss these options with you. Do I have to rebuild on the same site and what happens if I want to build at another location? If you have an alternative site and would prefer to rebuild on that site then there is an option for this. However, the overall cost of the rebuild must not exceed what it would have cost to rebuild at the original site. Any additional costs for building an alternative site would have to be paid by you. When rebuilding, can I down-size and have a smaller property as well as some cash compensation? We would be willing to consider a change of this nature. However, any payment of a cash sum to compensate for a small rebuild would be on the basis of the cash payment in the terms of the policy. This would mean it would be calculated on the market value of the property less the amount spent on the rebuild. If I want a Geotech report on my property before rebuilding commences, who will arrange this? We will obtain relevant reports on stability of land if required prior to rebuild. We will largely be relying on the EQC Geotech engineers for these but may, if the circumstances warrant it, obtain our own report(s). Any additional reports that you wish would be at your own cost. If my house is to be rebuilt who pays for paths, driveways and fences? Paths, gates, fences and driveways (constructed of concrete, paving or brick) are covered under your house policy and will form part of your claim. Who pays for demolition and removal and is there a requirement to secure the vacant land under health and safety regulations? Demolition and removal of debris is covered by your policy.

6 When work is being carried out on a construction site it must be secured and only authorised people are allowed on the site. The foreman of the site will co-ordinate visits and will ensure that the site meets all Health and Safety requirements. Can plants from the garden be salvaged before demolition? This may be possible. Please discuss this with your assessor. Who is going to maintain lawns and gardens during construction? It is difficult to be precise about this, as every situation will be different. Please discuss this with your assessor. If we have to move out of our home for repairs, will you meet the cost of additional accommodation costs? Yes, subject to the limit in your policy you have cover for this. Please discuss this with your assessor. Can I salvage items from the property if they are not going to be re-used? You will need to discuss and have the agreement of your assessor before any items are taken from the property. Can I supply materials and do some of the work to save money? Due to the complexity of the situation and the number of individual contracts, this will probably not be feasible. Will there be a guarantee on my new home? If the property is built by one of our preferred contractors, Horncastle Homes or Benchmark Homes, then It will have a Master Builder guarantee. Please ask for further details from the builder.