What is the legal position if landslips and floods cause damage to a property?

Landslips

An owner of land is entitled to the natural support of his land by his adjoining neighbour’s land.  If an adjoining owner excavates his land, and this causes the neighbour’s land to slip, the excavating neighbour is liable for any damage caused to his neighbour’s property.

But if an excavating owner subsequently sells his land, then the new owner is not liable for any later damage caused by the original excavation.

The position is different where the slip is caused by an artificial accumulation of soil on your land, for example a sloping area is built up to make a level lawn.  If that fill slips onto a neighbour’s property, then you will be liable to the neighbour for any resulting damage.  And this liability does pass to subsequent purchasers of the slipping land.

An owner of land is not legally liable for any damage caused by a naturally occurring landslip.

In general though, any damage to a residential property caused by a landslip will be covered by the Earthquake Commission up to the limits set out below.

Floods

An owner of land on higher ground is permitted to allow surface water naturally on the high ground to flow onto lower land, and therefore will not be liable for floodwater flowing onto his neighbour’s land.

But the owner of the higher land can be liable for damage caused to the lower land, if the water flow was caused by any structure on the higher land, or by the higher owner altering the natural flow.  For example, a higher owner would be liable if he makes a pond that overflows or bursts, or redirects a natural watercourse.

Flood damage to a residential property is covered by the Earthquake Commission.

Earthquake Commission

All residential property owners who buy fire insurance are automatically covered by the Earthquake Commission for damage caused by landslips and floods.

However, the maximum amount payable is up to $100,000 plus GST, plus up to a further $20,000 plus GST, for damage to personal effects.

It is also important to be aware that claims must be made within within 30 days of damage occurring.

Further detailed information concerning insurance coverage can be obtained from the Earthquake Commission’s website at www.eqc.govt.nz.