Govt makes offer for uninsured ChCh property
Thu, 13 Sep 2012 11:41a.m.
Uninsured property owners in Christchurch will be able to sell up to the Government - but they'll only get paid half the value of their land.
Earthquake Recovery Minister Gerry Brownlee on Thursday announced the Government's offers to owners of uninsured houses and vacant land, and owners of insured commercial or industrial land within the flat land residential red zone.
The owners of 50 uninsured properties that were occupied when the February 2011 quake hit were not eligible for the Government's previous offers, but will now be offered 50 percent of the rateable value of their land.
"If owners decide to take this offer, the land and any buildings on it will become property of the Crown from the settlement date," Mr Brownlee said.
"What the owner chooses to do with any buildings on the land up until that day is entirely up to them."
The same offer will be made for 65 uninsured parcels of vacant land within the residential red zone.
There are also 22 insured commercial and industrial buildings in the area, but the land they sit on is not covered by Earthquake Commission insurance as it is not residential.
Mr Brownlee says the land's ongoing value is significantly reduced by the earthquake damage.
"In order to aid recovery and support the objectives of the residential red zone process, it has been decided to also make an offer to the owners of these properties."
They will receive a similar offer to owners of insured residential properties - either half the most recent rating valuation for the land, or that amount plus the most recent rating valuation for any improvements.
Six insured homes on leasehold land in Waimakariri will receive standard residential offers from the government, but lessees have to enter agreements with Waimakariri District Council to buy the freehold interest in the land.
The Government has made offers for 6479 insured residential properties on flat land in greater Christchurch, 15 insured residential properties under construction and five insured properties owned by not-for-profit organisations.
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14/09/2012 9:43:58 a.m.
no insurance, you take all the risks. the Tax payer should not be paying one cent out to thses that choose not to have insurance.
13/09/2012 6:25:18 p.m.
So you buy you section to build your home, then earthquakes happen, suddenly your land is in the red zone, you can't build on it and you are only offered half its value as it was uninsured. If there were such a thing as 'section' insurance the fair enough but there isn't. A section needs a completed house to get insurance. How is this fair, it is just causing financial ruin for people through no fault of their own.
13/09/2012 4:44:20 p.m.
.... one could make so many arguments either way about this move that i figure it's probably best to just call it neutral and ignore it.
13/09/2012 3:47:43 p.m.
Sandra that is incorrect. Land IS insurable in New Zealand. Land under and around your home. You insure it by paying your EQC levy though your ordinary insurance. Owning vacant land is a risk and those who took that risk don't have to accept the Govt offer if they don't want to.
13/09/2012 2:47:27 p.m.
Very generous of the Govt considering they are not under an obligation to offer anything to uninsured private land owners.
13/09/2012 2:31:18 p.m.
just get some money off the tribes wrote:
just tell the Cristchurch people to make a land claim against the Tribes as they have all the money and own the wind the water, etc so it must be their fault
13/09/2012 1:37:08 p.m.
Sandra, its totally unfair (to use your words) to expect people who have insurance and do all the right things to bail out those who don't. It all comes down to responsibility. Insurance is something all vehicle and property owners should have. Freeloading and then bleating when things go wrong is not being responsible. They are lucky they are getting anything at all. And should be graateful.
13/09/2012 1:27:39 p.m.
I think that is so totally unfair to offer only half the value of the land for those who did not have insurance. Insurance is for buildings only and not land. Those who don't have insurance get nothing from EQC and have lost the buildings on their land - that is fair enough - no insurance no payout - but you don't and can't to my knowledge insure land. Those people who didn't have insurance have also lost the choice to rebuild on their land. The same applies to owners of vacant land - they have lost the choice to build and they couldn't have insured even if they wanted to as there was nothing to insure - seems to me even more unfair in those cases
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