It has renewed its insurance cover for buildings, which include those in the Harbour-Tyne St historic precinct, with a minimal increase in premiums from about $10,000 a year to $12,000.
That has been achieved by reducing coverage for earthquakes, tsunamis, volcanic and geothermal damage, but does cover the major risk of fire.
To have had full cover would have cost more than $65,000, along with an excess of $100,000 or more, trust chairman Phil Hope said last week.
He said taking out the higher cover would have had an impact on tenants in the trust's buildings.
The very high excess would also have had an impact, with minor damage being paid for by the trust.
The trust had to assess the level of risk before determining what cover it could afford.
"Like a number of building owners, we found ourselves in the situation whereby our insurance providers have changed their policy on earthquakes.
"We looked at alternative options. However, the cost of new earthquake cover would exceed our existing premiums considerably," he said.
The Waitaki District Council, which has provided the trust with a $500,000 loan with security over the trust's Criterion Hotel and Loan and Mercantile buildings, was expected to accept the reduced insurance cover.
Corporate services manager Carolyn Carter said that, while the scope of cover had been reduced by the trust, it was stull sufficient for the loan.
"We recognise and understand the challenge facing the trust in the wake of the Canterbury earthquakes," she said, that the market for pre-1935 buildings had significantly changed and the challenge the trust faced.
The council at its meeting today will consider a recommendation it continue with the loan, recognising the new insurance cover was sufficient security.
