A WAY FORWARD
Initially when we got the 'green zone' label on the land under our trashed house, I believed my insurance company would get things going - do what they can - after all the Lincoln pub has almost been rebuilt and many other residential projects as well. Clearly, rebuilding can happen and obviously (as proven by the earthquakes we have had) modern building methods withstand lateral forces well.
We are now being told that insurance companies are not insuring new projects as they (and the re-insurers) perceive "too much risk with the ongoing aftershocks".
For me, and a whole bunch of other green zone residents three to five years plus for a rebuild will be too long. Loss of rent payments and accommodation allowances will run out well before then, leaving us high and dry.
Wait for a rebuild and assume that it can happen in four years - that is if the labor is there to get it done.
Accept a market value payout (at current deflated figures) - I believe some insurance companies are offering this option and that it is part of a comprehensive replacement policy - which I have.
Force insurance companies to:
pay the rebuild costs to the insured/ mortgagee - they will pay that cost later so it's no skin off their collective noses
purchase the land at current rates to sell later or leave the land with the insured for later resale
Given that scenario 1 is too problematic and that scenario 2 will leave you well short on your investment at current valuation rates I think that scenario 3 is the only one to opt for. We can use the rebuild money to pay off mortgages or invest while we rent until things settle down. Remember this option has no additional costs to the insurer if the insured retains the land for future resale and we can use our equity to get by while we wait for the dust/ mud to settle.
If this was adopted it will also save someone (probably not the insurance companies) a fortune in accomodation allowances etc. as people like us run out of support from our policies and become dependent on the state - God forbid!
Class action or test cases will be the way to make this happen as insurers would probably like that money to earn interest in their account rather than in yours,