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Wednesday, November 2, 2011

Green-blue TC3 land and the potential for insurance problems

Back on the 9th of September there was a blog entry about insurance companies and how they might decide that not all properties in the green zone can be repaired because of damage to the land underneath (here and as reported by insuranceNEWS.com here).

Gerry Brownlee's media release from last Friday (here) states:
"The information released today will allow homeowners with damaged properties in the residential green zone to get on with the process of repairing or rebuilding their homes with greater confidence," he said.
Greater confidence is a start, but certainty is needed. Has the government discussed the status of TC3 land with insurance companies? Do they accept that land classified as TC3 is safe to rebuild on? What reservations do they have?

Once more we come back to the four points raised in the earlier blog:
  • Will the "damaged land, repairable house" scenario arise in the Green Zone as well?
  • Will insurance companies take upon themselves the power to unilaterally declare little "Red Zones", perhaps as small as a single section, if they feel their financial exposure is at an uncomfortable level?
  • Will insurers, in effect, be the only group with a re-zoning opportunity available to them?
  • If this is permitted by the government then what integrity attaches to the initial geotechnical decisions?
Might be a topic for the community meetings CERA are apparently going to announce next week?
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