Insurance costs on the rise in Addington Highlands

Craig Bakay | Mar 24, 2021

The bad news is that Addington Highlands’ insurance costs are going up by 14 per cent. The good news is that it’s a lot worse for many other municipalities.

“When I saw 14 per cent, I wasn’t happy about it,” Mike Airhart of McDougall Insurance told Council at its regular (online) meeting Tuesday. “But it’s lower than what I’m seeing out there.”

Airhart said many municipalities are facing 15-25 per cent increases.

“Where do you think this is trending?” said Dep. Reeve Tony Fritsch. “This puts us in pretty bad conditions.”

“I’m seeing 58 per cent increases,” Airhart said. “The big thing is, we’re seeing increases in claims frequency and larger settlements.”

He said while settlements were once in the $1 million - $2 million range, today settlements of $10 million and even $20 million are not uncommon.

“We’re getting more of an American mentality,” he said.

Airhart said that because of the number and size of claims, there are fewer companies willing to insure municipalities.

“There aren’t 10-12 companies any more, it’s down to a handful,” he said. “I do forecast we’re in will start to stabilize, (but) I’m not forecasting a decrease.”

“Are we seeing more accidents with our vehicles or in our facilities?” said Fritsch.

“There are a lot of slip and falls right now but we’re also seeing more serious accidents,” Airhart said. “The larger losses we do see are in road accidents, especially in cases where people have to change their house around (to accommodate wheelchairs and such).”

Airhart said he would try to set up some risk management seminars for Council and Township employees.

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CBO David Twiddy presented Council with a spread sheet on the parameters of tiny homes, predicting that there could very well be an increase in their numbers soon.

“We’re getting five-six calls a week with people asking about lots available,” he said.

He said that while the tiny home phenomenon isn’t all that prevalent in southern municipalities, it’s getting more popular in the north, especially as municipalities crack down on trailers.

“In the north, somebody will buy a lot and sooner or later you’ll see a trailer on it,” Twiddy said. “Tiny homes might be an alternative to those who might want to sneak a trailer on their lot.”

As such, he said, the Township might want to start looking at regulations for tiny homes.

“You may have a small building but things like setbacks and minimum septic sizes remain the same,” he said. “Another aspect to look at is the number of outbuildings and sheds allowed.”

One thing Twiddy doesn’t advocate is allowing C-can containers to be used as housing, citing potential health risks and the resulting liabilities.

“The paint on the outside is meant to withstand ocean conditions,” he said. “And often contains lead.

“And the wooden floors have been treated with chemicals.”

• • •

In his regular report, CBO David Twiddy told Council “There is certainly a healthy appetite for additions/renovations and new home construction leading me to think that the current wave of construction is far from over.”

He also said that there are several facilities management projects on the go including glass guards around the librarian areas in the Flinton and Denbigh libraries, the acquisition of generators for Northbrook Medical and in Denbigh as well as the Flinton Library accessibility ramp completion.

He also said he’s been “making the rounds” looking for cannabis grow ops, including Hartsmere Road and has yet to see any evidence of any.

• • •

Fire Chief Casey Cuddy received approval to apply for a fire safety grant, which he said would be used for computers in the fire hall.

“The government seems to be throwing out a lot of money right now (and) my thoughts are we may as well get our piece of it,” Cuddy said.

• • •

Council gave its approval to join L & A County’s Development approvals project.

“It’s a very cost-efficient way for lower tier municipalities to acquire software components we might not be able to acquire on our own,” said Clerk-Treasurer Christine Reed.

Possible acquisitions include software for engineering, building permits, roads planning and buildings.

“I like the idea that each municipality can have these on their own, not being dependent on the County,” said Coun. Kirby Thompson. “People can be intimidated by having to go to the County but are more comfortable coming to the Township office.”