"Pensioner's garden falls into river after torrential rain"

From The Metro:

Half of the garden fell 12metres (40ft) into the raging River Eden in Wetheral, Cumbria, including the shed and most of her patio. And she didn’t hear a thing. Mrs Howe, 72, who is a church verger, described what happened: ‘I was reaching to the kitchen sink for a knife and looked through the window – a big part of the garden had gone...As you can see, Mrs Howe's house is now teetering on the edge, and her insurance company is refusing to pay up (rightly or wrongly). Clearly, the value of the bricks and mortar has been destroyed, that's a net loss of wealth to humankind (whether she pays it or whether the insurance company finally caves in [sic] and pays), but what happens to the location value?

A plot directly overlooking a river usually has a much higher value than a plot further back (if we ignore the risk of the river bank collapsing again). The location value of her plot, seen vertically, is now zero, presumably, but assuming Mrs Howe's whole house is declared unsafe and demolished, what happens to the value of the plot behind it that previously had no 'riverside premium' but now does - hasn't the location value of that plot just jumped by the same amount as the location value of Mrs Howe's plot has fallen?