Diminution of Value Methodology for Increased Flooding Vulnerability paper

This paper describes the methodology developed by the professional valuation advisors to the Earthquake Commission (EQC) in conjunction with legal and engineering advice to determine what, if any, reduction or diminution of value (DoV) of insured residential land has resulted from what is defined as Increased Flooding Vulnerability (IFV) land damage to that land, a form of natural disaster damage under the Earthquake Commission Act 1993, in circumstances where the residential building that was on the land prior to the Canterbury earthquake sequence has been or will be removed from the land, and a new house has been or will be rebuilt, due to the extent of the earthquake damage.

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