University of Otago suffer a significant financial hit to assure its $ 2.3 billion worth of construction and Content funds next year.
Insurance premiums have risen 62% in response to the international market in the wake of earthquakes in Christchurch.
Figures released from the Otago Daily Times View the insurance covers damage to property and business interruption will increase by about $ 860,000 more than $ 2.1 million.
University's financial services director Grant McKenzie said the university had secured more than 50% of its insurance policy from the international market.
The University renewed its insurance policy for its buildings and contents 1 December at the same level as in the previous year, when the fees will cost about $ 1.3 million, he said.
The university is one of the lengthening list of Otago organizations to hit the rising economic costs of insurance premiums and improve the heritage buildings constructed before 1936.
Insurance premiums to cover the historical churches have grown dramatically, when the legacy of the courts at Balclutha, Oamaru and Dunedin are closed earthquake strengthening.
University of Otago has 13 category 1 heritage buildings registered in the New Zealand Historic Places Trust, and another six class 2 building.
Insured in respect of the University of heritage buildings is approximately 18% of its $ 2.3 billion building and the contents of a portfolio of property - equivalent to approximately $ 41.4 million - Mr. McKenzie said, is sent in response to the ODT.
Buildings built before 1936 to attract higher premiums from insurance companies, because New Zealand does not introduce any building standards prior to the Napier earthquake in 1931.
Mr. McKenzie said the terms of the University of the cover a "pre-1936" was determined as a percentage of buildings, building code compliance for each structure.
Financial Director of the University told the members of the Council meeting recently, had no doubts about reached the level of insurance cover sufficient to build any heritage buildings, if they are damaged by fire or earthquake.
University property services director Barry MacKay said about 80 campus buildings in Dunedin had been "the original assessment procedures", in accordance with the New Zealand Society for Earthquake Engineering Guidelines.
"Of all the buildings owned by the University of the Dunedin campus, only those which have been built prior to 1976 were considered" at risk "in the current NZSEE instructions," he said.
Add to protecting the Building Code provisions came to New Zealand then Mr. MacKay said.
Mr. McKenzie said the change in premiums meant the university would carry "higher deductibles," as part of its cover.
Different factors would determine the damaged heritage building has been restored, and this decision was likely to make managers and vice-chancellor of the university, he said.
"Whether the University to repair or replace the building would be determined by the amount of damage to the building, [the] cost of restoration and the importance of building the University," Mr McKenzie said.
Eight of the buildings on campus of the University of Dunedin is secondary to the ongoing "detailed" reviews the seismic response of the original results of the evaluation reports, Mr. MacKay said.
Article Source :- http://www.odt.co.nz/campus/university-otago/192595/big-cost-university-insure
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