An advocate for those affected by the Canterbury earthquakes says insurers are not playing fair in the payouts they are offering to Christchurch red zone homeowners.
The comment follows evidence from Tower Insurance at the High Court in Christchurch on Friday.
The company said it is not obliged to pay for the cost of expensive foundations for properties in the red zone because private insurance does not cover land damage.
Wider Earthquake Community Action Network chairman Reverend Mike Coleman said insurers are offering red zone homeowners dramatically reduced sums based on the cost of a repair, rather than the more substantial rebuilding costs which most are entitled to.
The Reverend Coleman said the only other option for those in the red zone is accepting the Government payout for their homes, which is usually less than they are worth.
