A discussion about Waitomo's rural halls will result in a review of the district council's policy towards insuring community assets.
(File image). Photo: 123RF
Deputy mayor Guy Whitaker sparked the discussion about the policy last week when he asked why the council was insuring the former Te Kūiti post office and the historical society building.
"That was quite an historic agreement [to] come through within the policy. I suppose it is part of the community wellbeing that as long as they are paying their bill, we are happy not to chase them," council business support manager Alister Duncan said.
"We are providing a community organisation with a saving in their costs."
The council's insurance is through Waikato Local Authority Shared Services (WLASS).
Independent chair Bruce Robertson said Waitomo District Council's insurance bill has increased by $44,497 in the past 12 months, bringing the total from $250,428 for 2019/20 to $294,925 for 2020/21.
"What we have heard is that premiums are likely to go up. It's a bit scary what I have heard of the premium rates," Robertson said.
Mayor John Robertson questioned the policy around the insurance of a sports building on a council domain.
"My understanding is this policy is saying we will insure halls. And then charge on to hall committees. It is restricted to halls and, as Guy says, the post office? It doesn't go out further than that does it?"
"It's on a case-by-case basis," Duncan said.
"Is it a policy we have got, or how do we determine that? I think we need to be very careful we are not in the business of insuring sports clubs, and away we go - barns, and so on."
Councillor Phil Brodie said it was in the council's best interest to ensure the rural halls were insured, as they would revert to the council if their committees ceased operating.
"You have got a huge amount of money volunteers are managing," he said.
The mayor's request was for a policy to be established.
He suggested staff return with a proposal early next year.
"I'm sure it would be a prominent issue for a number of our rural councils around the country," he said.
The excesses for the halls are $10,000, determined by the council's insurance policy through WLASS.
The cover, whether replacement, functional replacement or indemnity, is determined by the hall committee.
"If you have got [a huge hall] and you only use two thirds, functional replacement is for the two thirds," Duncan said.
The Mokau War Memorial Hall Committee elected indemnity value cover and the Benneydale Hall Society elected functional replacement rather than full replacement cover.
Indemnity value is the market value of the building just prior to damage but includes an indemnity inflationary provision and demolition costs.
The insurance market was hardening, the committee was told.
"The insurers have repeatedly made clear, they have no appetite to lower the excess level of council or any of the other councils in the collective," Duncan said.
"If they did agree to a lower excess, this would be done under a separate policy with additional premiums."
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