Insurance Renewal 2024

Last week the Methodist Church received the renewal rates for 2024 Across the portfolio there is a 22.5 – 25% increase on our sum insured premiums. We have always tried to deliver the best possible cover for our buildings, at the best possible premium rate. However this year, as many New Zealand homeowners have found, the insurance market is the toughest it has ever been.

A decision was made to reduce the impact of the cost increase to our insured, by providing a subsidy towards the 2024 premium cost. This will mean there will a 10% increase in the premium cost to the wider church for the Material Damage and Business Interruption (MDBI) portion of your invoice. We will still collect the EQC and FENZ levies, and apply the contents and alarm subsidy where applicable.

This decision did not come easily as we have been absorbing the majority of cost increases over the last 5 years, to reduce the impact on our members. It is now impossible to be able to provide insurance cover without a cost increase, this year. Another impact on the cost of insurance is the increase in property values, in some areas this has been a 50% increase.

In addition to the cost increase, there will be a cap of $250,000 for flood claims in the binder. The binder is properties with their sum insured under $8M. The excess will be 10% of the claim. Properties in the open market (over $8M) will not have a cap.

Excesses

• General excess (including water claims) will increase to $2,000
• Excess for fire, burglary and arson claims will increase to $1,000

Parishes, committees and boards will need to think creatively about budgets for the 2025 renewal as we do not have the means to be able to keep subsiding the premium shortfall in the future. We may have to change the way we insure our properties, including an increase in the current self-insurance retention, or the possibility of indemnity cover for churches not used regularly.

We offer a comprehensive liability suite at no extra cost to the wider church. Cover is for all MCNZ members, on MCNZ business for the following liability cover:

1 – Standard Liability

Public Liability

To cover claims from third parties for property damage or personal injury arising out of the business activities and/or products of the insured

1 – Standard Liability cont.

Statutory Liability

To cover fines or penalties imposed for unintentional breaches of certain statutes where insurable by law

1 – Standard Liability cont.

Statutory Liability

To cover fines or penalties imposed for unintentional breaches of certain statutes where insurable by law

Employers Liability

To cover claims made by employees against employers for workplace injury or illness where cover falls outside the scope of ACC legislation

Employment Disputes

To cover damages and costs arising out of certain employment related disputes such as wrongful termination, harassment and discrimination. Cover includes associated defence costs

Directors Liability

To cover damages and costs arising out of certain employment related disputes such as wrongful termination, harassment and discrimination. Cover includes associated defence costs

Professional Indemnity

To cover legal liability incurred by giving negligent advice or through a breach of professional duty. Cover includes associated defence costs

Corporate Liability

To cover the loss arising from a violation of any laws, rules or regulations regulating securities

Crime

To cover financial loss caused by fraudulent acts of third parties. This risk is commonly excluded from cover under Material Damage insurance

2 - IT Liability

Cyber

Specialised cover for protection of internet and network exposures, some of which are excluded from traditional Insurance policies. Also covers liability to third parties as a result of the use of your IT systems as well as damage or destruction of your own systems and records.

2 - IT Liability cont.

Social Engineering

To cover financial loss caused by social engineering attacks such as fraudulent impersonation and fake invoice fraud committed by third parties against the insured. Cover provided under your Crime policy for $100,000 in the aggregate

Internet

To cover claims made for errors or omission committed or omitted whilst using the internet. Cover under the Cyber policy

3 - Defence Cover

Defence Costs

Provides defence costs only in respect of those noted sections which are subject to a charge under Section 9 of the Law Reform Act 1936 where defence costs cannot be indemnified under those noted sections

Remember to think about church security over the holidays. Make sure all windows are secured, doors locked and the alarms set. Ensure rubbish skips and equipment are kept well away from the building perimeter and where possible secured to a post, so they cannot be used to gain access into the building or set alight causing fire damage. Use of a key register will keep a track of keys.

Have a Merry Christmas, a Happy New Year and if you are travelling, have a safe journey.

Wendy Anderson
Insurance and Property Team