Council Receives Infrastructure Insurance Claim Report
A report to the Hurunui District Council has provided an update on the assessment of damage to council infrastructure post-earthquake and the resulting insurance claims.
The earthquake that hit the district on 14 November 2016, caused damage to the council’s above and below ground utility infrastructure assets. The extent of damage to above ground assets has now been fully determined and the report presented today contains details of 21 above ground assets that were found to be damaged in some form as a direct result of the earthquake event.
Infrastructure Services Manager David Edge says that fortunately, the council had made provision for such an event though insurances and natural event coverages and has largely mitigated the full financial burden of this damage being placed on ratepayers.
“These above-ground assets were insured at the 2015 asset valuation, using the best information available about the utility assets at that time. The estimated damage is $1.2M with an insured cover value of $840k. The council’s excess on the insured cover is therefore calculated to be $360k of overall repair costs.”
The report also contains an update on the on-going assessment of below-ground infrastructure, with remedial works on these assets to date amounting to $990k. Insured below-ground assets are 40% covered through the Local Authority Protection Programme and 60% by Department Prime Minister & Cabinet, with a $400k council excess against each separate event claim. The final below-ground infrastructure claim has a targeted date for final submission of January 2018.
Mayor Winton Dalley says that while we would all love infrastructure repairs to be completed faster, the council has done all it can to assess the damage to its infrastructure and this report is a significant step towards progressing the subsequent insurance claims.
“This was a significant event for our district which we are still recovering from and it is good to see that ratepayers will not bear the majority of the repair cost for key infrastructure, due to the prudent use of insurance. Our thoughts continue to be with those progressing their own residential insurance claims as we move forward post-earthquake as a district.”