We've developed a handy glossary of commonly used terms in our residential red zone settlement offer packs.
Build rate
The average cost per square metre to build a house. This rate includes all necessary internal and external finishes to comply with the Building Code, all services and standard appliances and site works.
Base rate/base build
This is the cost to rebuild a home on a like-for-like basis, using current methods and materials. It does not include GST, internal and external finishes, services, and any extra value items such as heat pumps, rimu panelling etc.
Demo rate/demolition rate
The average cost per square metre to demolish a house. This rate varies depending on the materials and size of house to be demolished.
EQC payments
The amount EQC pays to a customer for contents or house and land damage. This is capped for each event at $100,000+GST ($115,000) for house and land damage and $20,000+GST ($23,000) for contents damage. EQC will deduct the applicable excess from any amount it pays you.
Excess
This is the amount of the loss that you must pay. The excess amount is shown in your policy schedule
Floor area
The floor area is the outside measurement of the house, including all levels, garaging and developed basement.
Rebuild cost
The cost to rebuild a house to its original size and specifications, using current methods and materials. This includes building the house to meet current building codes and standards.
Salvage
Owners can negotiate with their insurance company to keep or buy back (salvage) specific items from their houses, such as heritage windows or fittings.
Shared parties
Where there are two or more people or groups responsible for the cost of a shared asset such as a fence or driveway.
Slab/concrete slab
Usually made of reinforced concrete, many buildings have a concrete slab as their foundation and floor. It supports the weight of the building instead of using foundation piles or stumps.
Square metre (m2, sqm)
An area that measures 1000mm x 1000mm. This is the standard measurement for measuring the size of buildings and calculating costs for building.