§ Mr. BercowTo ask the Secretary of State for Northern Ireland what the cost of buildings insurance to his Department was(a) before and (b) after 11 September 2001. [66929]
§ Jane KennedyDepartments are required to comply with the Government's general policy on insurance, which is set out in Government Accounting, Chapter 30, para. 30.2.5, which notes that government does not need to purchase insurance to protect the viability of its business, and should consider insurance only were the value of claims met would exceed the cost of insurance premiums. Commercial insurance of a building is acceptable in cases where (a) insurance is a condition of a lease (b) the lessor will not except a Government indemnity (c) incurring the total cost of the accommodation in question, including the cost of the insurance, is more cost-effective than other accommodation options [Government Accounting, para. 30.2.11a].
The NIO occupies approximately 40 different properties, which are a mixture of commercially and publicly owned. In terms of building insurance, only a handful of premises pay for their own insurance costs directly (at a total value of less than £10,000). The rest either pay for insurance as part of a quarterly service charge (or it is inclusive with their rental) or claim indemnity as described above.
Of these buildings which pay their own insurance, premiums have increased over the last year, however it is not possible to say how much of this years increase is directly related to September 11.