71106 (2024). Hon Dr Duncan Webb to the Associate Minister of Finance

71106 (2024). Hon Dr Duncan Webb to the Associate Minister of Finance: When the Natural Hazards Commission compensates by paying the value of the land does it asses this on the basis of the value of the land actually damaged that is insured land, or the value of the land rendered unusable by the damage (for example by the imminent risk of future damage such as a slip) that is insured land?

Hon David Seymour: I am advised the value of land is assessed based on the prior market value of the part of the insured residential land that is damaged, which includes physical loss or damage that: • occurs as a direct result of a natural hazard, • occurs as a direct result of measures taken under proper authority to mitigate the consequences of a natural hazard,or • is imminent damage (meaning further damage that is more likely than not to occur within 12 months of the original natural hazard event, as a direct result of it). I am advised also that if the area of the damaged part of the insured residential land is greater than the 'area cap' as defined in s 44(6) of the Natural Hazards Insurance Act 2023 (NHI Act), the land value is instead assessed based on the prior market value of a hypothetical area of land, as set out in s 44(2) of the NHI Act.