Davis, you (or Tower more correctly) are confusing two separate issues . You hold a policy with Tower for full replacement cost in the event of a catastrophe . Item 1.
Catastrophe occurs , house is munted liability falls on Tower to replace said insured house
THEN

Item 2. Government enacts RedZone and sats to Tower , you cannot rebuild on this site . As I see this , not your problem but Towers as they are obliged to complete their contractual liability and rebuild/replace your house Now evidently somewhere else . You may have to fork out for the land as that was not insured by Tower but that si a separate issue and one that is covered under Gerry Brownlees scheme I believe

Do NOT let these bastards wear your down!!!