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.

 

Add a Comment

Our journalists are your neighbours

We are the South's eyes and ears in crucial council meetings, at court hearings, on the sidelines of sporting events and on the frontline of breaking news.

As our region faces uncharted waters in the wake of a global pandemic, Otago Daily Times continues to bring you local stories that matter.

We employ local journalists and photographers to tell your stories, as other outlets cut local coverage in favour of stories told out of Auckland, Wellington and Christchurch.

You can help us continue to bring you local news you can trust by becoming a supporter.

Become a Supporter