Church Property Trustees
Update No. 24-03: Property Matters
22nd August 2023
Welcome to the latest CPT Update. There are a number of property matters covered in this issue. Please do not hesitate to be in touch if you require any further information.
Insurance Renewal 2024/25
The 2024/25 insurance renewal has now been completed and adjusted costs will be included in the August ADMSC parish billing.
The main points to note with this year’s renewal are:
- Contents are no longer included in ADMSC billing as this cover is now the responsibility of ministry units.
- Insurance cover remains with NZI and OMPL (Lloyds of London Syndicate).
- The total value of the Diocesan buildings Sum Insured decreased 3.4% (compared to a 6.9% increase last year).
- The Material Damage [MD] premium increased by 5.9% following strong engagement and negotiations with the insurer.
- There is a net 2.5% increase in MD premium.
- The Fire & Emergency Levy [FENZ] has increased from 1st July 2024.
- Residential Properties remain covered by NZI and includes Natural Disaster through NHC – Natural Hazards Commission. This is the new name of EQC – Earthquake Commission which took effect from 1st July 2024.
- A risk analysis of St Mary, Timaru and St Michael, Christchurch-St Michael confirmed the appropriateness of the group policy’s $30m Maximum Loss.
- A total of 28 buildings remain insured for Indemnity Value only due to being EPB or of high risk due to age/condition.
- When buildings become vacant the insurer must be informed – please inform the CPT Property Manager when buildings become vacant and when they are re-occupied.
CPT Property Management Contribution – Change of Name:
You will notice on your monthly ADMSC invoice that there is a change in nomenclature for the CPT cost recovery mechanism. The “CPT Insurance Fee” has been re-named “CPT Property Management Contribution”. This change is to clarify that this contribution covers more than just the management of the Diocesan insurance programme.
This contribution covers not only the costs of administration of insurances but is a mechanism to assist CPT in funding its property management work. The amount to be recovered is set each year by the CPT board and is spread across the property portfolio based on the insurance premiums on buildings.
CPT Property Management Contribution – Change of Calculation:
This year there has been a change in the calculation of the contribution with this now being assessed on the Material Damage [MD] insurance premium only. Previously those properties covered for Natural Disaster [ND] had this additional premium included in their calculation.
This alteration to the allocation method, and CPT’s no longer managing Contents insurance cover means there will be a change from last year in the amount of contribution for each ministry unit/property.
Contract Works Insurance Cover:
As in previous years, Contract Works [CWI] is included in the MD policy up to $1 million. It is important that our insurers are aware of work being undertaken. Please ensure that the CPT Property Manager has been informed of work being undertaken on properties prior to work commencing and remember that certain works require Standing Committee and CPT approval, and at time a Faculty.
Insurance Issues – Air Conditioning Units
Recently there have been a number of burglaries involving the theft of copper in air conditioning units.
If your ministry unit has air conditioning units at ground level, you might consider the installation of security cages around these. Where there have been instances of theft of copper our insurers are insisting replacement units are caged. Heat pump firms can assist with this.
Contents Insurance Invoicing:
A reminder to those ministry units who have elected to have contents insurance through Gallagher that Gallagher will invoice you directly. Contents invoices are not now paid by CPT and invoiced through the ADMSC billing as in the past. CPT is no longer involved in any way with contents insurance.
Regards,
Gavin Holley
General Manager