The Rev Sarah Mitchell, of the 135-year-old Knox Church,
says the historic Dunedin church and others in New Zealand
are facing large increases in insurance premiums. Photo by
Peter McIntosh.
Historic Knox Church faces a future without insurance
after being hit with a 300% increase in premiums, and the
situation could be the same for other churches, its minister
warns.
Insurance rates for older churches were expected to increase
by up to 60% after the Christchurch earthquake, but the
council of the 135-year-old Dunedin church was not prepared
for its latest invoice.
Ten days ago it received a bill for $55,000, up from last
year's $18,000.
"I don't think there are many churches in New Zealand that
could absorb this hit," the Rev Sarah Mitchell said.
"We don't believe this is just an issue for Knox, but for
many churches and for the community."
The cash-strapped church was "only just" managing on its
current budget, recording a slight deficit over the last
financial year, but could not find enough to cover the
premium increase.
Last week the council decided it would not pay the bill, and
would effectively go without insurance rather than cut its
community commitments.
"We do not want to insure in this way, if this is the cost."
The council was now talking to insurance providers about its
options, but Dr Mitchell confirmed to the Otago Daily Times
that having no insurance was one possibility.
A church was "primarily the people, not a building", and she
said even if Knox Church was insured for its full replacement
value, it would never be rebuilt as it was.
Presbyterian insurance group secretary Douglas Langford, of
Wellington, confirmed the premiums included fire and
earthquake risk.
Other insurers had been considered, but the current one,
Ansvar, was comparably the most affordable, he said.
Churches were expressing concern at the increased costs of
insurance, and work would be done to ensure the premiums were
paid.
Some churches would examine other insurers, but his response
to that was, "Good luck to them".
All properties were insured and had been issued invoices.
Payments were expected before the end of September.
"Church property is property held in trust, donated by past
generations for the benefit of future generations and we have
a trust obligation to ensure this value is protected."
hamish.mcneilly@odt.co.nz
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