CERA Recovery Plan Released

CERA released its Recovery Plan on 30 July 2015 following the Supreme Court's judgment in Quake Outcasts . The plan details the Crown offers to be made for vacant, insured commercial and uninsured properties in the Residential Red Zone.

The new offers are as follows:

• For vacant properties (bare land with no buildings), 100% of the 2007/08 rateable land value.

• For insured commercial properties, 100% of 2007/08 rateable land value and 100% of the 2007/08 rateable improvements value for insured improvements (such as buildings).  If commercial property owners elect to receive 100% of the 2007/08 rateable value of improvements, they may not retain the benefit of their private insurance claim for the improvements.

• For uninsured properties, 100% of the 2007/08 rateable land value.  No payment will be made under the offer for uninsured improvements (such as buildings).  However, property owners will have the option of relocating, salvaging or selling any buildings or, alternatively, they may elect for the Crown to remove any buildings with the Crown meeting the cost. 

The plan will be a welcomed amendment to the initial offers for many affected property owners.  However, property owners of uninsured, improved properties have expressed disappointment at the lack of any compensation for uninsured improvements on their land.  The early indications in the media are that property owners in this category are considering obtaining further directions from the Court, but at this stage no formal applications have been made.

The information in this article is general in nature.  If you are concerned as to whether or not the Recovery Plan has any applicability to your specific circumstances, please contact Saunders Robinson Brown for further advice.

Residential Red Zone Offer Recovery Plan

Quake Outcasts Judgment