The city of Kerpen has to reassign building insurance and pay 300,000 euros more

The city of Kerpen has to reassign building insurance and pay 300,000 euros more

According to a report by www.ksta.de, the city of Kerpen will have to pay higher premiums for insuring its municipal buildings from January 1, 2024 due to many reported damages. During the tender for new building insurance, the city administration only received one offer, which was due to the increased costs. The insured sum for municipal properties amounts to around 42 million euros, with schools, sports halls and other public facilities making up the majority of this. The increased insurance costs mainly result from reported damage caused by rain, floods, burst pipes and other natural hazards. In addition, the general increase in construction costs and insurance premiums contribute to the additional costs. Additional budget funds of around 300,000 euros must be registered for the coming year, and a further 300,000 euros will be required in each of the following two years.

The increased insurance costs are expected to have an impact on the already strained budget of the city of Kerpen. The increased costs could potentially result in savings in other areas or possibly even tax increases for citizens. In addition, such a development could lead to other communities and cities experiencing similar problems with insurance premiums and claims, which could ultimately lead to a nationwide discussion about the costs and risks of public insurance.