Official Information Request - 10 January 2019

Sent: Thursday, 31 January 2019 9:42 a.m.

Subject: TRIM: LGOIMA request - insurance for Rotorua Museum

I refer to your official information request of 10 January 2019 regarding the Rotorua Museum's insurance, and reply below as per your email:

- What insurance cover is there for Rotorua museum and what does/did it cover?

Material Damage Policy - $56 million

Fine Arts Policy - $40 million

Business Interruption Policy - For a maximum of up to 2 years loss of revenue

- What was the cost of the insurance and the excess before the museum closure?

Cost of insurance
Approximately $160,000 per annum

Excess
Fine Arts - earthquake deductible $25,000

Combined Material Damage and/or Business Interruption - Natural disaster excess is 10% of the total material damage sum insured ($56,196,950) = $5,619,695

- Who is the insurer?

Aon is RLC's broker

- Has there been a payout, if so how much and what for?

Council's insurance claims are still active and being finalised. Any final claims and payments will be publically communicated at the appropriate time.

It is important to note that any insurance payout would only cover the cost of reinstating damage and not additional work required to bring the building up to current building code.

- In 2016 the council heard that as long as the damage repair bill, combined with the loss of earnings exceeded $5 million, the museum would be fully covered. What is the estimated or actual loss of earnings from the time of closure to January 10, 2019?

Council estimates loss of income for the 2016/17 and 2017/18 years to be at least $2.2m per year, but we are still quantifying the cost of any qualifying repairs (as opposed to strengthening and new code requirements).

- If it exceeds $5m and insurance is not covering, why? If possible please provide an email from the insurance provider to the council explaining the reasons for declining the claim (if it has been declined)

No formal claim has been lodged at this time as Council is still working towards quantifying its loss.

As per the Act, we are obliged to advise that you may contact the Ombudsman at the address below if you have any concerns with the response provided by Council, by writing to:

The Office of the Ombudsman

PO Box 10 152

WELLINGTON 6143

Alternatively, you may email info@ombudsman.parliament.nz or use the online complaints form available at www.ombudsman.parliament.nz/make-a-complaint.

Regards