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The true cost of the Gisborne earthquake is becoming clearer, with insurance claims expected to soar past $35 million and some business owners being told it could take two years for their premises to be repaired.
The Earthquake Commission initially put the cost of the 6.8 strength quake which shook the East Coast on December 20 at around $30 million.
However, yesterday the Insurance Council said the cost of claims was now $34.5 million, and said that figure was expected to rise still further.
Council chief executive Chris Ryan said the EQC's current estimate of household claims was $19.5 million. Alongside that, the latest estimate of claims for commercial insurance was $15 million.
"However, with structural engineers and insurance adjusters still on the ground in Gisborne, the costs of repairing a number of these commercial buildings looks likely to rise again," Mr Ryan said. "Some buildings in Gisborne could take up to two years to repair or replace, leaving the building owners and tenants with far longer time out of normal business than they had expected."
Some Gisborne business owners had discovered their firms were going to be out of action for longer than they expected, and also longer than their insurance cover allowed for.
The most costly quake in recent times was the 1987 Bay of Plenty earthquake, which cost $330 million.
Gisborne Chamber of Commerce president Anne Pardoe said she could understand some businesses might be years away from reopening because the extent of the damage caused by last month's earthquake was only now being understood.
"There has been quite substantial damage to property and it's becoming more and more apparent as the [building] inspectors go around," Ms Pardoe said. "To the naked eye it might look like it's nothing more than chimney hanging down and then you go and find that all the bricks inside have subsided as well. Some of these properties date back to the beginning of the century and if the plaster and mortar fails the bricks collapse."
The Gisborne District Council classified 23 buildings as unsafe in the days after the quake. Eleven buildings are still regarded as unsafe.
