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Councils to consider Cyclone Gabrielle buy-out policy change

cyc gab

A change to the Cyclone Gabrielle Category 3 Buy-out Policy to fix an anomaly will be considered by Hastings District Council and Napier City Council.

The application of the policy as it is written allows owners of fully insured properties to retain a portion of their insurance policies intended to cover the cost of demolishing their flood affected dwelling.

In the current policy the councils are responsible for the cost of demolishing residential dwellings they have purchased as continuing to live in them presents an intolerable risk to life (categorised as Category 3 by Hawke’s Bay Regional Council).

Hastings District Council Strategy and Development Group Manager, Craig Cameron says that, in some instances, the current policy could see councils funding demolition that the property owner have been paid out for from their insurers and where the full insurance payout is higher than the independent market valuation of the property.

“We are seeking to strike the right balance between being fair and reasonable to both impacted property owners and ratepayers. We want impacted property owners to have the ability to move on with their lives and establish themselves in safer areas. We also need to be fair to ratepayers who are helping to fund this important work.”

Councillors will also be asked to consider including uninsured property owners for a contribution to ensure fairness across the insurance positions of property owners.

30 January 2024

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