Earthquake Land Checks

Christchurch Earthquake’s – Land Checks

Which Zone are you in?

The Prime Minister, Rt Hon John Key, announced at 1.30pm today the decision by the Crown to assist those in areas where significant land damage exists.

Canterbury has been split into four areas:

Red Zone – 5,000 homeowners

Two options exist by the Crown:

Option 1:

The Crown will purchase the property at a full and final payment, based upon the current Rating Valuation (RV) less any insurance payments already made.

Option 2:

The Crown will purchase the land only based upon the RV whilst the property owners will continue to work with their insurance providers regarding the building component of the property. This may be a better option for those on a replacement policy with the insurance provider.

Those in the Red Zone will have nine months to consider if they wish to accept option 1 or option 2. It is advisable that you consult your insurers, bankers and accountant in making your decision.

In terms of the RV, Christchurch's most recent is 2007. Christchurch City does not use Quotable Value, the government agency who completes valuations. This was tendered out to a New South Wales company and was to be completed by the end of 2010, which did not happen. Subsequently the Christchurch City Council RV is based upon 2007 figures. This in itself may cause some contention amoung homeowners.

To review your RV, refer to http://ratesinfo.ccc.govt.nz/

In the great majority of cases, if you are looking to maximise your payout, option 2 may be the better option.

Orange Zone – 10,000 homeowners

Moderate - sever damage.

Decision to be yet made.

Land classified as orange means Engineers need to undertake further investigation. Some of the damage in these areas is as a direct result of the magnitude 5.6 and 6.3 earthquakes which struck on 13 June, and has not yet been adequately assessed to provide residents with certainty;

Orange zones will progressively be classified following the outcomes of further investigations.

Green Zone – majority of Christchurch

Land classified as green means that homes are suitable for repair and rebuild. Property owners should talk directly with their insurer or EQC about repairs. Land in this Zone is not severely damaged, however there may be some isolated exceptions where geotechnical assessments will be required due to major land damage;

White Zone

If your property is classified as white, a full land assessment has yet to be obtained after June 13 earthquakes. In the Port Hills, an extensive geotechnical investigation is underway. Land issues such as rockfalls are of a different nature than to those on the plains. No timeframes have been set for these areas.

Funding for the above propositions will be sourced from the Canterbury Earthquake Fund.

To determine what zone you are in, refer to www.landcheck.org.nz