ST. PAUL – Community organizations under the County of St. Paul’s insurance policy, which is offered through the Rural Municipalities of Alberta (RMA), will be seeing increased insurance costs.
During the Nov. 26 County of St. Paul Public Works meeting, Corporate Services Director Phyllis Corbiere told council the property values of the 25 community organizations under the County’s policy have increased by four per cent due to increased building costs.
The insurance premiums the County is paying also increased by 7.5 per cent.
Organizations under the County’s insurance policy are called Additional Named Insured (ANI), and “most of our ANIs are in the wildfire area,” explained Corbiere. ANI properties located in wildfire areas will see a 10 per cent additional premium increase.
Coun. Darrell Younghans asked how many organizations are located in wildfire areas since 10 per cent is a significant amount.
“I’ve drafted a letter already [to the RMA] . . . because that [10 per cent increase] is huge,” acknowledged Corbiere. According to the RMA, all of the County’s ANIs are located in wildfire areas.
Younghans asked who sets the wildfire zones.
To which Coun. Kevin Wirsta, who sits at the RMA board, responded, saying, the province sets the wildfire zones.
Corbiere said on top of the four per cent increased building costs, 7.5 per cent insurance premiums increase, and 10 per cent premiums increase due to ANIs being located in a wildfire area – it is a total of 21.5 per cent in surcharges for ANIs.
Council passed a motion to distribute the surcharges to the organizations, which will cost those groups a total of $32,872 in insurance premiums, and for the County to use $10,850 from its reserve fund to help fund the increases in insurance.
The motion was carried.
Elk Point Curling Club
The County also approved adding the Elk Point Curling Club as an ANI under the County’s insurance policy during the Public Works meeting due to the Town of Elk Point being unable to carry the organization’s building insurance for its curling rink.
The Town of Elk Point will provide $7,000 each year for the next 10 years to help with the premiums.
“It is my understanding, from speaking with RMA, that we could get a better rate on the premiums if we could be listed as an additional insurance under the County’s policy,” said Joanne Warawa, treasurer of the curling club, in a Nov. 21 letter to the County.
Warawa noted in the letter that Alberta Municipalities provided a quote of over $8,000 in insurance premiums, “so given the rate at which premiums increase every year we would like to ensure we get the best rate we can.”
Younghans asked if there is any risk to the County, and CAO Jason Wallsmith said there won’t be any risks specific to the curling club.
