Government to pay $12m to uninsured Christchurch red zone homeowners

The Government has announced a $12m payout to the former owners of uninsured properties in the Christchurch red zones.  

Minister for Greater Christchurch Regeneration Megan Woods said: "The plight of people who were uninsured at the time of the quakes has been one of the difficult legacies of the earthquakes.

"The previous Government's offer of nothing for uninsured homes left many people significantly out of pocket."

Ms Woods said over the next few weeks the Government will pay the former owners of 103 properties the pre-earthquake rateable value for their homes.

"As many of the people involved have tested their claims in court, we've been given clear rulings that an area-wide approach to red zoning suggested that an area-wide response was required to support recovery  one that did not differentiate on the basis of insurance status," Ms Woods said.

The total costs of the payments is expected to be around $12 million.

Ms Woods said the Government had carefully considered the Court of Appeal's 2017 judgment in the Quake Outcasts litigation in making its decision.

"It took some time to make this decision because we wanted to make sure it was the right one. We had to consider fairness and consistency, the precedent this decision may set, and the need to be fiscally responsible," Ms Woods said.

The Minister said the Crown is willing to purchase red zone properties for any owners who are interested in selling, regardless of insurance status, at 100 percent of the 2007/08 rateable value.

"This Government is committed to helping greater Christchurch recover from the earthquakes. We are making good by paying an amount for these red zone properties which will assist people in moving forwards with their lives," she said.

The Human Rights Commission has welcomed the Government's offer to buy properties in the residential red zones.

Acting Chief Human Rights Commissioner Paula Tesoriero said it's "an important step in enabling people who still live on or own red zone land to consider their options".

"It is now important that people eligible for the new offer get all the information they need to make an informed decision. This includes knowing their options should they not accept the offer."

Newshub.