Insurance and red zone

kellypchch, Jun 27, 1:55am
Is there any point to having insurance now the Govt is paying out to people who were uninsured?

jonners2013, Jun 27, 2:15am
the only suggested offer for uninsured people is for 80% of the 2007 rating valuation of the land, not 80% of the total value of the property.

robyn35, Jun 27, 3:24am
of course there is, 80% of your land value while better than nothing is still leaving you with a big shortfall, uninsured dont get anything for their house at all but i dont think a lot of people realise that, they see the government offer and get huffy thinking that those without insurance are getting the same as those with it when its not the case at all

mm12345, Jun 27, 4:10am
Is there any point owning land at all, when a dishonest government can make a decision rendering that land worthless, then offer to buy it a half what it would have been worth in a feigned act of generosity - while cynically misusing the term "moral hazard" - when they've demonstrated an appalling lack of morality as confirmed by a high court ruling?

david_270, Jun 27, 4:33am
This city seems to be full of uninformed people.
The government has reclassified the land, but rather than taking it under the Public Works Act, they brought in the CERA Act and "red-zoned" it, to placate the insurers and re-insurers.
The proposed 80% payment is FOR THE LAND, not the uninsured building that is on it. How many times does this have to be explained?
And for the 100% offer for the land - you can't insure bare land, so there never was a choice to insure or not.

Personally I think they should all get 120% for all the crap that Herr Brownlee has put them through. A very vindictive man.

tmc1, Jun 27, 4:38am
oh hahahaha, i guess that depends on whether you think the government will buy your property if it burns to the ground, or gets damaged in any way at all. Why don't you just get rid of your insurance if your so sure that of it and see what happens. Like the lawyer said on national radio this morning, its a 1 in 10000 year occurrence so i guess the uninformed will think its worth taking the risk

david_270, Jun 27, 5:34am
I rest my case.

oskybosky, Jun 27, 10:18am
Did you ever consider why all three courts in our country determined the 50% offers to be unlawful? Unfortunately for the government they did not do their homework on this, and in an attempt to appease the insurers and re-insurers with their red zone plan, they wanted to make a small group of uninsured people be publicly seen to suffer. The cold hard reality is that the entire red zoning process was unlawful, the Supreme Court recognised this in their verdict but chose not to rule on it. They did however rule the offers as unlawful and when it came down to it, insurance status was not a valid distinguishing factor in a governments decision to zone land. The government have tried to have their cake (help with earthquake recovery) and eat it to (at minimal cost to the taxpayer AND with minimal upset to insurers). And now the Quake Outcasts will return to court once more, as is their right, if the government didn't play the game by the rules.

william1980, Jun 27, 10:49am
Firstly, think about the most unlikely event to happen that would lead to the Govt needing to pay out uninsured people. That's this situation.
Then, think about all the more likely things that could wreck your house (fire, water damage, tree crushing it, out of control bus driving through the lounge wall). That's why you insure your house.

kirkette, Jun 27, 7:57pm
I also thought they were paying out for the houses, if it's for the land they should be paying them 100% or more as you cannot insure land and I thought that was what EQC is there for. Heaven help us if a big one hits Auckland or Wellington.

lambrat, Mar 26, 1:17pm
and the penny drops!
eta. you and most of the rest of the country. all thinking its an insurance free-for-all for the worst hit areas down here, lol
eqc was an incompetent joke to start with, and i'm not sure much has changed since the first couple of years when they just lurched & bumbled along.

know your insurance policy, what it means, and the real value of your home. . make sure you're not under-insured.
if i'd accepted eqc's word, i'd be repairing a 170sqm home on a quarter acre, thats within 1km of a redzone, with $31,000 bahaha

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