After two Old Town residents found themselves in a bind with their insurance companies while looking to officially make their homes heritage properties, the town is freezing the designation of their homes.
Niagara-on-the-Lake council voted last Thursday to pause the heritage designation of two dock area properties after homeowners Barbara Worthy and Jim Reynolds spoke to council about how their insurance companies were looking to hike their premiums because their properties would be designated as heritage homes.
Worthy, who came to council speaking about her property at 116 Delater St., questioned why individual homeowners must “bear the brunt” of heritage ownership.
“I support heritage,” she said, noting her role as community engagement co-ordinator at the NOTL Museum. “It’s kind of strange that I have to be here challenging this.”
The discussion followed a municipal heritage committee report from Oct. 1 recommending that the properties be designated.
Council told staff to look into insurance rate impacts and report their findings to both the municipal heritage committee and council.
Reynolds said his insurance premiums with Intact Insurance rose sharply after he and his wife merely inquired about designation for his property at 120 Delater St.
“I think they’re looking for ways to shed as much risk as possible,” Reynolds told council, speaking about the insurance companies. “Things are evolving quickly in the area of insurance.”
He added that 112 Delater St., owned by Bruce Howard and Andrew Cardarelli, was also slated for designation, but the owners withdrew after being told they would lose coverage.
Reynolds supported investigating insurance company practices and suspending heritage designations if no affordable insurance options exist.
“We don’t want to see the concept of heritage designation sullied by putting property owners in an impossible financial bind,” he said. “An uninsured property is worthless property.”
Worthy said her insurer told her she would not have “adequate insurance,” offering only coverage for the home’s “cash value with depreciation.”
“They had very little knowledge about their own policies,” she said. “That was very disturbing.”
Council members expressed support for the homeowners. Coun. Wendy Cheropita thanked them for sharing their experiences.
“I’m glad the delegations have come forward tonight,” she said, “because this is information we didn’t have before.”
Cheropita also praised the homeowners for their commitment to heritage preservation.
