The Otago Regional Council has not escaped the insurance fallout from events such as the Christchurch earthquake but has secured full insurance for the next year.
The council's insurances were reviewed annually and for the 2011-12 year an overall 36% increase in premiums had occurred, a report to today's council's finance and corporate services committee says.
As a result of the Canterbury earthquakes and other significant natural events insurance companies had been reviewing their risk exposure in New Zealand.
While some councils had faced difficulties gaining insurance, the regional council had not, with all categories of insurance held renewed, although there had been an increase in premiums and excesses, the report said.
Council corporate services director Wayne Scott said he was comfortable with the insurance council brokers had been able to secure, as it was the same cover as in past years.
"We don't have any underground assets."
The council would be reviewing the level of its emergency response fund given the Canterbury situation, he said.
It stood at about $3 million.
Insurers had required current valuations of the council's insured properties which had resulted in the sum insured under its material damage policy increasing from $24 million to $39 million.
This had translated into a doubling of the material damage (property and contents) premium to $62,776 from $29,979 in 2010-11.
The excesses for this premium were $50,000 for subsidence and landslip, 5% to 10% of the material damage site sum insured for earthquake, volcanic eruption and hydrothermal activity and other claims $2,500.
There had also been an increase in business interruption insurance from $685 to $1018 and, the civil defence premium had only increased about $600 to $11,521.
The council's public liability and professional indemnity limits had been maintained by RiskPool at $1 million.
