Cyclone recovery: About 700 properties likely too risky to rebuild - Ministers

Cyclone recovery: About 700 properties likely too risky to rebuild - Ministers

The government and councils will offer a buyout option to property owners whose land is too risky to rebuild on, and co-fund protection works for those who need it. Cyclone Recovery Minister Grant Robertson and Associate Finance Minister Michael Wood announced the move on Thursday afternoon, saying they expected details to be worked through with councils and finalized this month.

The question is whether those people affected will be happy with the government cash offer, and the affected numbers will only increase in time as more than 20,000 properties have been identified to be as either a red or yellow sticker. The red will not be able to get insurance and the yellow ones possibly for limited risks which will change the landscape of insurability.

Councils across the country knowingly have provided consents for builds in flood prone areas, and areas right on river banks and coastal areas. Some of those properties would be able to be removed to higher ground, at a cost. While others will be a total loss.

Insurance companies have been trying to discuss the issue with government and councils but as yet there has been no breakthrough.

To discuss your current insurances call us on:

Off: 09 360 5555

Mob: 0273 000666

E mail: info@suninsurance.nz

Link to see the whole story here.