Housing NZ reaches $ 320m quake deal

Housing New Zealand has reached a $ 320 million settlement with insurers led by Suncorp Group’s Vero unit over 5559 homes damaged in the Canterbury earthquakes — $ 110 million less than the state agency had originally claimed.

The settlement involves four insurers in New Zealand, 23 in Britain and Europe, Lloyds of London and insurance broker Aon and is the largest single insurance payout ever made in New Zealand, says Housing Minister Nick Smith.

The reduced payout reflected early repayment and a repair timeframe that was cut back to three years Our commitment is to return the level of social housing stock in Canterbury to the same as it was prior to 4 September [ 2010], but in a better state. from five years, reducing the escalation clause, Smith said.

The negotiations ‘‘ were complex and challenging’’.

He said Housing NZ had spent $ 16 million so far on 221 vacant damaged properties and $ 8.3 million on around 27,000 health, safety and asset protection jobs in the city.

‘‘ Our commitment is to return the level of social housing stock in Canterbury to the same as it was prior to 4 September [ 2010], but in a better state,’’ Smith said.

In keeping with current policy, more one- and t wo- bedroom units will be built and fewer three- bedroom homes. Housing NZ is also dispersing its properties rather than building concentrated housing estates.

The total cost of insurance claims for the Canterbury earthquakes was estimated at $ 30 billion, according to the Reserve Bank.