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Insuring the Future

At a Forum meeting in May, Alan spoke of the options that have been made available to us through the Anglican Insurance Board to help bring down the overall premium we face on an annual basis. Due to changes in the global reinsurance market and the ever growing risk of a major disaster, particularly earthquake, in Hawkes Bay, the premiums have skyrocketed. For our parish churches and vicarages, the rate has gone from $18,000 budgeted in 2023 to $48,000 budgeted for 2024. That is over 250% increase in rate. As a parish, we are one of the lucky few that can carry this increase without a significant deficit, primarily because of the work and grants we have received due to a desire to employ a full-time Associate Pastor in 2024. But it is a very large portion of our operational budget, that will only ever increase in the current market.


As a result, the diocese has investigated the options for us. These primarily centre on the level of cover. There are three options - replacement cover, indemnity (the depreciated value) and replacement cover with no insurance for natural disasters. These each have nuances, included complexity in circumstances of partial loss vs full destruction. As a Vestry, we have chosen not to explore the cover that excludes natural disasters, as this seems a highly unwise gamble on the future of what we offer as a church.


At our most recent Vestry meeting, discussion centred on what facilities could be dropped in their cover. The overall assesment was that the whole parish and diocese requires the centre that is All Saints' in order to effectively undertake its mission in Napier and even the Hawkes Bay. As such, in the event of a disaster, it would need to be replaced. Alongside this, the vicarages are homes and rental income sources, and so full cover is preferable. This left us with the option to drop St George's, Crownthorpe and St Michaels Church and Hall in Puketapu to indemnity cover, alongside the possible drop of the newer portions of the All Saints' Complex. In the event of a disaster, this would leave us sufficient captial to rebuild what was needed to undertake Anglican mission and ministry in the parish.


The charts below offer an insight into two options we are considering.


Option One: Rural Churches and Halls to indemnity cover

Saving $5,334.55 pa compared to present cover.

Building

Cover Value

Cover Cost

All Saints' Church

$3,102,000

$10,778.89

All Saints' Hall

$1,729,00

$6,007.94

All Saints' Family Centre

$3,705,000

$12,807.47

All Saints' Contents

$300,000

$1,085.37

All Saint's Vicarage

$847,000

$2,934.94

St Michael's Church

$236,000

$1,175,86

St Michael's Hall

$187,000

$788.75

St Michael's Vicarage

$920,000

$3,139.12

St Georges Hall

$614,000

$2,518.12

St Peter's Hall

$105,000

$177.35

Total


$41,413.81

Option Two: Rural Church and All Saints' Family Centre at Indemnity Value

This saves $10,440.38 compared to present cover

Building

Cover Value

Cover Cost

All Saints' Church

$3,102,000

$10,778.89

All Saints' Hall

$849,000

$3,418.39

All Saints' Family Centre

$2,821,000

$10,291.19

All Saints' Contents

$300,000

$1,085.37

All Saint's Vicarage

$847,000

$2,934.94

St Michael's Church

$236,000

$1,175,86

St Michael's Hall

$187,000

$788.75

St Michael's Vicarage

$920,000

$3,139.12

St Georges Hall

$614,000

$2,518.12

St Peter's Hall

$105,000

$177.35

Total


$36,307.98

Both of these options will be discussed at the Vestry Meeting in June. Before that, however, a reflection on the options and how the Vestry has come to consider these will be offered at a Forum meeting on the 2nd Sunday in June. If you have comments or queries, please bring them to that Forum meeting, or contact Alan or the Wardens.



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