Infrastructure repair covered
Ratepayers in the Hurunui district will not be overburdened by the cost of infrastructure repairs thanks to adequate insurance provisions put in place by the council.
A report to the council this week provided an update on the assessment of damage caused by the November 14 earthquake and the resulting insurance claims. Infrastructure Services Manager David Edge said the extent of damage to above-ground assets had now been fully determined. The report contained details of 21 assets found to have been damaged to some extent in the earthquake.
It was fortunate the council had made provision for an event such as November’s quake through insurance and natural event cover, which had largely mitigated the full financial burden of the damage being placed on ratepayers, he said.
‘‘These above-ground assets were insured at the 2015 asset valuation, using the best information available about the utility assets at that time.’’
The estimated damage was $1.2 million with an insured cover value of $840,000. The council’s excess on the insured cover was calculated to be $360,000 of overall repair costs, Edge said. The report also contained an update on the ongoing assessment of belowground infrastructure, with remedial works on those assets totalling $990,000.
Forty per cent of insured below-ground assets were covered through the Local Authority Protection Programme, and the remaining 60 per cent by The Department of the Prime Minister and Cabinet (DPMC), with a $400,000 council excess against each separate event claim. The final below-ground infrastructure claim has a targeted date for final submission of January 2018.
Mayor Winton Dalley said the council had done all it could to assess the damage to its infrastructure. The report was an important step towards progressing the subsequent insurance claims.
‘‘This was a significant event for our district which we are still recovering from and it is good to see that ratepayers will not bear the majority of the repair cost for key infrastructure, due to the prudent use of insurance.
‘‘Our thoughts continue to be with those progressing their own residential insurance claims as we move forward post-earthquake as a district.’’