The nominal cost of rebuilding these assets could be larger as construction costs and prices for materials may well increase over the coming years, and as reconstruction incorporates quality improvements. Indeed, the Reserve Bank’s Insurance Oversight Team estimates that total property insurance claims (including buildings and other assets) stemming from the earthquakes could be considerably higher than these numbers.
In addition, some of the damage caused will not have been insured or will not be repaired. The response to these events The devastating impact of the Canterbury earthquake necessitated a large and coordinated response by central and local government, as well as private sector agencies.