The Insurance Aftermath of an Earthquake

First there were several people who had inadequate insurance in Christchurch. I have no idea what the situation is in Japan, but I understand that some of the worst hit were apparently poor communities illustrated by the ease with which the  tsunami washed away the houses.

I think the first thing goes back to my previous blogs on preparation lessons, the aftermath and getting your household ready. The Earthquake Commission is there to help after a natural disaster which isn’t covered by normal household insurance. But the scope was huge. They had over 440,000 claims and even in dealing with those, their liability is up to a maximum of $100,000 for dwellings and $20,000 for personal property. Try building a house for $100,000 or replacing even your basic possessions including appliances, furniture, clothing etc for $20,000. Some people will pretty much walk away with nothing.

Now insurance itself is a risk game and they take our premiums on the expectation that for a large number of people they will never have to pay out. Now I haven’t seen the financials for EQC, but I suspect that most of the money has gone into running the organisation over  the years, especially given that after the event John Key says that the government may have to treble the levy in our taxes for future incidents. Does this mean that we are now going to start to pay for what happened, borrowing from the future because the funds weren’t there? Are wee robbing Peter to pay Paul?

We always knew a major disaster looming. Of course we thought it was most likely to happen in Wellington. It hasn’t, which of course doesn’t mean it won’t because Christchurch and Wellington are on different fault lines. But I would have thought with years and years of taxes and no major incidents, EQC would have been flush with funds.

Anyway, back to the present. If you don’t have adequate insurance to cover everything, think again and do what you can, even if money is tight, things could get a whole lot worse. I hate insurance. I was once asked to do a whole lot of psych tests by an insurance company who thought I would be a star life sales person. The idea of selling life policies to my friends was anathema but I loved tests, so I spent a whole day doing the tests and they came back apparently saying I would be hugely successful. I declined despite the offer of a big package. Today I wonder if I should have taken the money, because I better appreciate the importance of insurance. It’s a gamble by both parties, both hoping we will never be in a position to need the cover.

I have life, income protection, health, car, house and contents policies and it eats up a lot of money. So far the insurance companies have enjoyed a lot of meals from my table, but if something major did happen, I feel secure that if my company closed for 6 months because its buildings ceased to exist, if I was injured or ill long term, or if my house washed away in a tsunami, I could rebuild. As the Dean of Christchurch Cathedral said, its the people that matter, the church can be rebuilt.

One concern I had with the aftermath was seeing people throw away their household appliances, carpets, furniture etc and wondering how they would be able to prove what they had lost. The share scale meant that many people had to do that, but it does show the value of having a list of your possessions and also photos. I once had a software app that did that, but never fully used it. Another thing to my be prepared list methinks.

 

Household devastation after the earthquake

So I recommend you grab a digital camera or video camera at least, so that you can go through each room and record your possessions and the state of your property, so that you will have proof in the unlikely event that you could need it. Then store the information somewhere safe. I used to keep my songs in safe deposit on video, with the bank, some people thought I was stupid, but again its just insurance.

Enough for now. I hope I’ve given you some more food for thought. Here’s some fond memories of mine of Christchurch a couple of years ago, with a song I am still writing.

 

Advertisement

The ANZAC Currency is approved

Yesterday evening agreement was reached between the NZ Prime Minster, John Key and the Australian Prime Minister Kevin Rudd, to create a common currency. In a joint statement they said that this had been on the table for many years and successive governments had decided to see how the Euro fared as a shared currency. Given this success they have announced that within one year of today, there will be a new shared currency between Australia and New Zealand called the ANZAC Dollar, or ZAC for short.

There will be a commemorative ZAC Dollar silver coin minted next month as a collectors item. Given the relationship between Australia and New Zealand, whose soldiers fought side by side in 2 World Wars, the commemorative coin will be minted on two sides. One side will feature Sir Charles Upham, possibly the most decorated Kiwi, with a Victoria Cross & Bar, Greek Medal of Honor and African Star. The other side features Australian War Hero, Alfred Shout, who earned many citations including the Victoria Cross, Memorial Scroll and Kings Message.

The existing currencies of each country will be phased out over a 2 year period and from 25 April 2010, the date of the ANZAC Day commemmoration, either currency will be accepted in both countries until the new currency is released.

“This will herald a new era of a close relationship that has existed for over 200 years”, said John Key  from his Beehive Office in Wellington, where he quipped that he had of course not been around at that time. He went on to sayb that in these difficult economic times, a joint currency would have a stabilising effect on the local economy.

What happens when the water rises in Auckland

After writing my blog on New Orleans yesterday, I reflected on our own position. I live on Auckland’s North Shore and when I drive the motorway to the Auckland Harbour Bridge and there is a king tide, the water almost laps onto the verge of the motorway. If the sea rises a metre, the water would frequently run accross the motorway itself. If that rise becomes permanent, Auckland, we have a problem.

Auckland is a problem to me because I live there, but the same applies to areas such as the main entrance into Wellington where a whole stretch of road runs along a coast which frequently has heavy seas. Only recently State Highway One was closed because of waves crashing on the shore near Paekakariki in one of the storms which have now become commonplace in New Zealand.

New Zealand is an island nation, surrounded by sea. Much of it is well above sea level, but many areas are not that high at all. In fact, with our passion for the sea, a large percentage of our population lives close to the sea.

We watch with interest as the Pacific Island nations start to consider the possibility of having to leave their ancestral homes. We have even started planning to take on refugees from the Islands when some of them are forced to evacuate, most likely forever, but I see very little evidence of preparations for the seemingly inevitable, when the sea encroaches on our roads and homes. How is it that we seem to have so little forsight? What are the government, Transit and the councils doing to make sure that we are able to continue life as usual when the ice shelfs drop and the polar ice is gone?

While this blog is starting to get a good following, I would love to get more readers and encouraging me to keep writing. If you feel that my blog is interesting I would be very grateful if you would vote for me in the category of best blog at the NetGuide Web Awards. Note that the form starts each site with www whereas my blog doesn’t and is of course https://luigicappel.wordpress.com.

Thanks so much for your support:)

GPS Tracking of Elderly People Update and Orcon Update

First of all I’d like to give you a quick update on the personal tracking unit I’ve been testing. It’s going really well. Please note I do not work for the company who is developing it, although if they go to market they will be using our mapping data, which I have been testing it with.

So I have tried it out in various parts of the country and it can track me wherever I go. If you had the logon and password to my account you could see where I have been on a map. You can play back my travels around Auckland, Wellington and Christchurch. When I was in my car you could see emergancy button

how fast I was driving and my exact route.

If I hit the red emergency button a text message gets sent to a phone (in this case mine). I had it sent to my wife when I first set it up because then she cpould see what I was up to and I thought that would be interesting. Stupid really because I couldn’t see if it was working and she was geting really worried because on some days she would get lots of messages saying that I had an emergency.

Basically the message gives my name and says I had an emergency. If I was inside at the time I sent the emergancy it gives the last known street address, which is usually the correct address because it has a movement sensor and will take a fix every time the device moves which obviously was set off last time I got out of the car. It uses the GeoSmart Reverse GeoCoder to retrieve the nearest street address to the co-ordinates where it was taken. The reason it gives the last address, is because with current satellite technology it can’t get a fix inside the house unless I am in an optimal position. This will of course improve when the Gallileo

It operates as a phone so a call centre can call me if they think there is a problem. It also can function as a phone with a number of preset buttons, which is great for elderly people who only have a few people they need to ring and find mobiles confusing.

A footnote on Orcon, I got a call today saying that they are onto it this time. They said the engineers that have been visiting don’t have sophisticated enough test gear to test a phone line for interference that wouldn’t affect phones and event ordinary ADSL. So hopefully I will see an engineer, at least this time they phoned me:)