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Insurance extended for municipal property
B.C.’s municipalities and regional districts may get a break on insuring buildings and infrastructure.
The Municipal Insurance Association has decided to enter into the field of property coverage.
“We just won’t provide liability coverage,” said Ryan Nitchie, an Armstrong councillor and MIA director.
“Hopefully this will reduce the costs for communities and they can tailor policies based on what communities need.”
Among the possibilities will be insuring in-ground works, such as water and sewer lines, from damage by flooding and earthquakes.
“It will help taxpayers,” said Nitchie of the new initiative.
According to the MIA, the adoption of global regulatory changes is expected to restrict the capacity of Canadian insurers to provide the level of coverage required, especially during natural disasters.
“Some insurers have already declined to renew this type of coverage in B.C.,” states a special resolution, which was adopted by MIA members at its recent annual general meeting.
“Many local government risks, such as terrorism, cyber risk and civil disobedience, and property, such as subterranean linear infrastructure, simply are not covered at a reasonable cost, if such coverage is available at all.”
MIA says that through its financial strength and relationship with global reinsurers, it can address these issues.
“Its pooled business model has been shown to deliver stability, cost efficiency and unique coverages to its members.”
MIA is member owned and more than 150 municipalities and regional districts are members.