The historic Melbourne GPO in Victoria Australia reopened on 5 September 2004 following a fire on 10 September 2001 that damaged the interior of the building. While the fire was contained to the retail section of the building it has been a long process of reinstatement.
There have been a number of other fires in historic premises in the last quarter, most notably the Uniting Church in Ascot Vale which was gutted by fire on 28 August 2004.
A reinstatement policy covers the reinstatement or replacement of property damaged or destroyed to a condition equal to but not better or more extensive than its condition when new.
The Melbourne GPO has occupied the corner of Bourke and Elizabeth Streets since 1867 and the Uniting Church was 107 years old. How do you replace a building in excess of 100 years old and restore its heritage? Obviously, this is impossible but modern products / replicas may reproduce a similar appearance.
There are a number of less obvious issues that arise from reinstatement of heritage listed premises.
What regulations currently apply? Will the council allow the Policyholder to construct, change, alter?
What time frames are involved in council approval for such property? It is worth noting that news reports indicated that plans for reinstatement of the kiosk on St Kilda pier (pictured right), which was destroyed by fire on 11 September 2003, were only released, 12 months later, in September 2004.
If the policy requires a sub limit for professional fees, is it adequate to cover the costs of architects’, surveyors’, consulting engineers’, and other fees for estimates, plans, specifications, quantities, tenders and supervision as a result of the Damage? This can be quite expensive in heritage listed buildings and often starts with re constructing original plans.
Does the policy provide cover for Extra Cost of Reinstatement and is it adequate? Historic buildings generally do not meet current regulations noting particularly disabled access/ facilities, fire walls and the like.
When was the last time artwork were valued and is the sub limit adequate?
If trading from the premises is conducted is the Indemnity Period adequate to cover the reinstatement of such property and the time to return to pre loss trading results?
Author
Published with permission of Claim Solutions Pty Ltd.
Insurance Policy
Country: - Australia
Policy Description: - Mark IV Industrial Special Risks (ISR) and many Fire policies
Insurer: - Not Supplied
External Links
