Red zone empty property owners' insurance dilema
Campbell Live is live from an empty section in Burwood, Christchurch with about 200 guests.
When the earthquakes hit, the Government came out with a compensation offer for people who didn’t want to deal with their insurers – 100 percent of rateable value in 2007 – an effort by the Government to create a one-size-fits-all template.
But the people joining Campbell Live didn’t own properties, they owned empty sections – some of them owned properties as well, but most of them just owned empty sections they were planning to build on.
They didn’t get offered 100 percent of their 2007 rateable value, they got offered 50 percent. Had just one day of work taken place on their empty section, they would have got 100 percent.
Campbell Live talked to the residents about what getting 50 percent meant to them. Many of them are still mortgaged on the empty sections – they are in red zones, they can’t sell them, they can’t go back to them. In short, they are stuffed.
Watch the video for the full report.