Wellington North’s insurance premium will rise about $10,000 due to revisions on property coverage.
Council received a presentation from local broker Jeff Coburn, of Coburn Insurance Brokers Ltd. and representatives from Jardine Lloyd Thompson Canada Inc. at its Feb. 10 meeting.
The $10,000 represents a six per cent hike in premiums over last year and increases the price from $186,640 to $197,127.
Jardine agent Meghan Callaghan said the township has also increased its blanket coverage on property from slightly more than $70 million to almost $77.5 million to reflect full replacement of township holdings including buildings and equipment.
The increase was due to discussions between Coburn and township CAO Mike Givens.
“We feel the change in the coverage reflects the reality,” Givens told council.
Councillor Andy Lennox raised the issue of whether the township should be paying for full replacement value as part of its premium.
“Do we need to insure full value?” Lennox asked.
Mayor Ray Tout said the additional coverage will cover full replacement of a building and equipment and include cleaning up debris, hauling and dumping fees.
Callaghan said insurers advised the municipality to increase liability coverage from $25 million to $50 million after court case saw a municipality forced to pay $30 million after it was found liable for costs associated with injuries sustained in a car crash. The cost for the additional coverage is estimated at about $4,800. Council will review the policy and consider adding coverage.
