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Earthquake cover

Sir,—Recent discussions with an official involved in the rehousing of some 1500 victims of the recent Bay of Plenty earthquake reveal an apparent disquieting feature relating to the replacement of their homes. The Earthquake and War Damage Commission will only pay out up to the indemnity value of the house, not the replacement value. My insurance company confirms the foregoing but recommends taking out a cover which will bridge the gap between indemnity and replacement. This premium is set at 19c a square metre. This disaster has placed many people on low or fixed income in the invidious position of having to take out additional or new mortgages of up to s4o,Oftt, Many are unable to service sufch a loan. Surely, if

all this is common knowledge, why is that so few people are aware of it? A recent news report indicated that the commission, having shed responsibility for flood damage following the Southland floods, now wishes to do the same concerning earthquakes. — Yours, etc., W. J. BAGULEY. April 1, 1987.

[This letter was referred to the Earthquake and War Damage Commission, but no reply has been received.]

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19870424.2.99.9

Bibliographic details

Press, 24 April 1987, Page 16

Word Count
190

Earthquake cover Press, 24 April 1987, Page 16

Earthquake cover Press, 24 April 1987, Page 16