Rest home promise
Summerset Retirement Villages, has assured residents at Aotea rest home they will be paid the total market value of their homes, should they be destroyed or condemned due to natural disaster.
The announcement came in the wake of the Canterbury earthquake, leaving residents of Kate Sheppard Retirement Village in Christchurch homeless and with no claim on the insurance for their former homes.
Summerset chief executive Norah Barlow said Summerset was concerned by the plight of the Kate Sheppard residents and immediately undertook a full review of its own policy.
‘‘We have taken leadership on this because we need to ensure a fair solution for residents in the event of a natural disaster. In the first instance, all affected Summerset residents will be provided with accommodation at our cost.
‘‘We will then do our best to rebuild as close to the original site as possible. If this isn’t possible we will pay residents the total market value of their homes at that time.’’
Ms Barlow said Kate Sheppard residents are only entitled to receive a payout equivalent to their original purchase price, minus a deferred management fee.
For long-standing residents this amount will be much less than the current cost of their home.
Alvina Napier, manager of Summerset Aotea, said the policy change meant residents no longer needed to worry about their security if a natural disaster struck.
‘‘Our whole community has been asking itself what we would do if we were in the position of Christchurch,‘‘ she said.
‘‘Kate Sheppard shows us that our residents are incredibly vulnerable.’’