Shire faces insurance battle

The Shire of Ashburton is fighting a claim it was over-insured for the Onslow administration office, library and hall buildings, which was severely damaged by an arson attack on Sunday, January 13, this year.

After the fire, the building was assessed and found to be irreparable.

It was then demolished in June, forcing staff to work from temporary locations in town.

The Shire Ashburton has sought building insurance to rebuild on the site; however, the insurance company in charge of the case, Charles Taylor Loss Adjusters, has offered the Shire $3 million for its claim - $1.7 million less than what it was insured for - because the insurance company claimed the Shire was over-insured.

In the most recent council meeting agenda, the Shire rejected the notion the buildings were over-insured as construction costs were estimated to exceed $3 million.

Shire president Kerry White hoped the situation would end positively.

"That's with the insurance company, they think we were over-insured so I think the administration is sorting that out with the insurance company," she said.

To prove the costs, the Shire will need to draft plans for a new building.

Charles Taylor Loss Adjusters' office in Perth was contacted but was unable to comment before publication.