Dunedin's St Paul's Cathedral was valued at $15.5 million in 2001, but last year the valuation increased to $23.2 million.
Unable to pay the increased premiums, the Anglican Diocese has opted to continue to insure it for $5 million.
‘‘We can no longer afford to insure it at its full value.''
If the church was destroyed, it was unlikely it would be rebuilt in its current form, he said.
Dunedin's Presbyterian churches are in the same position. If First Church or Knox Church was destroyed, it was unlikely either would be replaced in its current form, Presbyterian Church assembly executive secretary Martin Baker said.
‘‘A church like First Church is irreplaceable. It would be up to the congregation to decide what they would do if the building was destroyed.''
The church had one national insurance policy, with each congregation determining the value of its own church.
‘‘A congregation often decides to insure a building for less than its market value for a price that suits their requirements.''
The Catholic Church was taking a pragmatic approach to insuring its buildings, Otago-Southland Roman Catholic Diocese manager Stuart Young said.
Not all buildings would be replaced at their current value, he said.
The increase in premiums was because the cost to replace a church had increased significantly over the past few years, Ansvar Insurance New Zealand manager David Leather said.
