Repile and insurance - requirements?

[smokedfish]

Hi all, new to this and looking at purchasing an old (1930s) house in Wellington. It's had a partial repile (concrete piles) but this hasn't been consented/permitted by the council. The council says that anything pre building-act changes (1991-1993) is considered an 'existing situation' and they're not worried about it unless there is safety/hygiene concerns.

The repile has been inspected by a builder/piler and seems generally ok (some minor work required to fully secure things)....but, what I'm mainly concerned about is insurance - i.e. if the house was damaged in an earthquake, would an insurer refuse to pay out on the grounds that the repile hasn't been signed off by the council (even though the council aren't bothered...)?

I've seen a few houses like this (repiled but no council consent/sign off) ---are people just unaware of insurance implications or taking a risk, or is there a way around it?

Any advice appreciated!

Cheers

[One]

Talk to the insurance company. See what they say. If it's positive, get it in writing.

[TheLiberalLeft]

My kids had a pet boa in the UK. I'm pretty sure you can get reptile insurance for them.

How is the average Joe supposed to know they have piling issues? If insurance were to renege on payouts over something you had no knowledge of, then that's one for the ombudsman in my opinion.

[One]

The issue here seems to be that the repile was done (when?) but not signed off. I doubt it'd be a problem, but safest is to ask the insurance company.

[kapitibeanman]

If you want to really cover your backside, you could
just email them some photos & your builder's report, & ask them to confirm
all is covered, even if the council have no record. Keep a copy of your
correspondence with your policy.
I'd expect they would be more interested in the standard of work than the
council paperwork. There must be heaps of older places with work done
that didn't need permits, but today would.

[kapitibeanman]

How is the average Joe supposed to know they have piling issues?

Piles hurt.

[essence]

When you put your offer in on the house, you can make it subject to a Builders Report. Whether the vendor will accept an offer with that in it, is a different matter.

If you're happy with the Builder's report, after purchase you can go to Council and ask for a Code of Acceptance.

With regards to insurance, use the Builder's report photos to show that it safe/secure. This will assist getting insurance. Send copies of the photos to the insurance company for them to file. If there is a need to make a claim, they won't be able to argue that they didn't know, or that the house was too old, or that the sky was green, or whatever reason to deny a claim!!

There are many, many older houses that have comprehensive insurance cover, which would no longer meet the current building regulations,

[Maccachic]

How is the average Joe supposed to know they have piling issues? If insurance were to renege on payouts over something you had no knowledge of, then that's one for the ombudsman in my opinion.

From EQC - "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)."

If they can do it so can the insurance companies.

[beakernz]

We bought a 1930's brick villa in Dunedin recently. The brick is not structural, house is wood framed. It sits on concrete piles and base. Initially we had some fears. Insurance was saying only way to get full replacement coverage was to: re-wire, re-plumb, re-gib, re-pile, re-roof !! Might as well build a new house! But our builders report was solid. Insurance broker gave us indemnity cover for now and once we re-wire and re-plumb they say we can move up to full replacement cover. Re-wire is done and we're close to getting the plumbing sorted.

[Meehole]

Spoke to a repiling company in Akld the other day and they had a query from someone quite high up in a bank who was either purchasing or had purchased an old villa. Story is that now not only does the wiring have to meet a certain standard so do the piles/foundations to satisfy the bank and the insurance company.
A sign of the times it seems. Some builders reports are not worth a fanny full of snow freeze, you are better off to get a report done by a reputable repiler, one that has LBP accreditation as repiling work now comes under the category that requires their license number to be lodged along with the consent.
Speaking to an insurance assessor, if they find unconsented work during an inspection is usually warning bells that other unconsented work has been done on a house. You don't want to go there. Get a cost to repile the place and deduct it from what you think is a fair price for the house.

[Maccachic]

Or get a Building Survey in to do the report: http://www.buildingsurveyors.co.nz/panel/membersnear Building defects are their bread and butter.

[Meehole]

Or get a Building Survey in to do the report: http://www.buildingsurveyors.co.nz/panel/membersnear Building defects are their bread and butter.

Yes and you will pay $$ for a report whereby if you get a qualified tradesperson in that specialises in repiling they will usually give you a free quote to undertake the job.
If you had to have a hip replacement would you seek advice off your GP? Same thing.

[smokedfish]

Thanks for all the useful responses. So after calling around several insurers and brokers, it seems as though I can get indemnity only cover and then replacement once the re-pile is done. Some insurers won't cover it at all though, and others won't cover it for anything earthquake related, nor the actual re-pile job if anything goes wrong....

Have also had a piler in there and he can't give a conclusive answer about the likely cost of a re-pile job or the quality of the existing piles, because of access issues (which is probably why the full re-pile wasn't done in the first place). Maybe I am too risk-averse for this....!

Thanks again for the advice!