County of St. Paul to share rising insurance costs with community organizations

Community organizations under the county of St. Paul’s insurance policy, provided through the Rural Municipalities of Alberta (RMA), are facing increased costs due to rising property values and higher premiums.  

During the November 26 Public Works meeting, Corporate Services Director Phylis Corbiere informed the council that the property values of 25 organizations under the county’s policy have risen by four percent due to increased building costs. In addition, insurance premiums paid by the county have increased by 7.5 percent.  

These organizations, referred to as Additional Named Insured (ANI) will also face a 10 percent surcharge because all are located in wildfire-prone areas. According to Corbiere, this results in a total surcharge of 21.5 percent for ANIs.  

Councillor Darrell Younghans questioned the basis for the wildfire zone classification. Councillor Kevin Wirsta, a member of the RMA board, explained that the provincial government sets these zones.  

To manage the increased costs, council passed a motion to distribute the surcharges to the organizations, amounting to $32, 872 in insurance premiums. The county will also contribute $10,850 from its reserve fund to help offset these increases.  

In the same meeting, the county approved the addition of the Elk Point Curling Club as an ANI under its insurance policy. The decision came after the town of Elk Point indicated it could no longer carry the organization’s building insurance.  

The town of Elk Point has committed $7,000 annually for the next decade to assist with the premiums. Joanne Warawa, treasurer of the Elk Point Curling Club, highlighted the financial challenges in a letter dated November 21, noting that a separate quote from Alberta Municipalities exceeded $8,000.  

Adding to the Curling Club to the county’s policy allows for a more favorable rate. CAO Jason Wallsmith assured council that there are no specific risks associated with the club being added.