Christchurch City without Insurance

Christchurch City Council has been unable to buy any insurance because of the risks of more earthquakes. From today, if there is another big earthquake which causes damage to underground pipes, there will be no insurance to repair them. The city has the same problem with facilities like libraries, swimming pools, sports grounds and city council offices. If they are damaged again, there is no insurance to pay for the repairs.

Who will pay? Probably the city will have to increase rates to pay for these things. Already Christchurch City Council has added an extra 1.7% to rates for the next five years to help pay for the earthquake recovery. However, the Minister of Finance, Bill English said that the government would also help and that means the New Zealand tax payers.

Insurance problems might also affect home owners in Christchurch. It is likely that insurance premiums will become very expensive. It is even possible that insurance companies will not want to insure Christchurch houses any more.

Question
The whole of New Zealand is at risk of earthquakes. Is it fair to make Christchurch people pay higher premiums?