How the Christchurch payout options work
How the government's scheme could play out for a typical property.
The two options offered by the government to 5100 Christchurch property owners facing compulsory acqusition may provide higher payouts for some.
For example, homeowners can accept the full rating value payout or a partial payout plus any insurance payout.
If a couple owns an irreparable property comprising $180,000 for land and $170,000 for improvements (house etc) their rating value payout would be $350,000.
But if they choose the second option, the government will pay the land value and if they have an insurance policy with full replacement cover of say, $200,000, they would receive $380,000.
In another example, a homeowner may own a property with land value of $130,000 and improvements of $150,000 making the total government payout $280,000.
But if the homeowner takes the government land component payout of $130,000 and receives a $145,000 house replacement payout from insurers, they will receive a total payout of $275,000.
The payout package is estimated to cost the government between $485 million to about $635 million.
Chris Hutching
Thu, 23 Jun 2011
Thu, 23 Jun 2011
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How the Christchurch payout options work
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