Insurance costs outlined

An extra $70,000 has been set aside by the Waitaki District Council to meet increased insurance costs arising from the Christchurch earthquakes.

That includes $50,000 to rebuild the Local Authority Protection Programme, which covers in-ground infrastructure such as water pipes and sewerage, and another $20,000 for the rest of its insurance, from buildings to civil defence emergency costs.

Details of the increased cost of insurance cover were outlined to the council last week when it was finalising its budget for next financial year.

Strategy group manager Richard Mabon said the Local Authority Protection Programme was started in 1993, a mutual fund with 43 councils, and in the first 10 years had no major claims.

The first major claim was in 1994, $2.4 million for floods in Manawatu, Mr Mabon said..

However, the Christchurch earthquakes would use up the reserves and reinsurance.


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