Hurunui remains comprehensively covered
The Hurunui District Council has successfully renewed its insurance, ensuring comprehensive coverage for the 2011/2012 year.
Finance Manager, Jason Beck, says despite the fact Hurunui’s assets have been only minimally affected by the Canterbury earthquakes, continuing insurance cover had been a major issue for the Council.
However, through on-going negotiations, he says, it has been able to secure 100% cover for its above ground assets, inclusive of cover for earthquake damage. A panel of insurance companies will be providing this cover.
For its underground assets, the Council will continue to belong to the Local Authority Protection Programme (LAPP), which has secured reinsurance that will cover approximately 92% of the costs relating to repairing and replacement of underground infrastructure as a result of a natural disaster.
Jason Beck says this cover does come at a significant cost.
“After the September 4 earthquake, the Council had budgeted for a 20% increase in its insurance premiums, however, the final cost of a comprehensive range of insurance has resulted in the premiums more than doubling to approximately $370,000.
“Despite that, given the District’s proximity to recent events, not having comprehensive insurance cover was a risk the Council was not prepared to take.”
Yesterday, the Council determined to hold fast with a 3.59% overall increase to rates for the 2011/2012 year and fund the approximate $200,000 extra in insurance premiums through other revenue sources.
The cost of increased insurance premiums will, however, flow though into Council’s 2012 long term planning and can be expected to lead to higher rate rises than would otherwise be the case.
For further information:
Manager Financial Services
Hurunui District Council
P: 03 314 0029