The Kauaʻi County Council on Wednesday approved the county’s request to pursue and accept insurance payments up to its $25 million policy coverage limit for the restoration of the Kāpule Building that suffered severe damage in a fire on Sept. 9.
The insurance proceeds would cover eligible restoration, repair and replacement costs associated with the fire of the building that houses government services, including the DMV and permitting offices, at the Līhuʻe Civic Center.
County Finance Director Chelsie Sakai outlined the request in an Oct. 20 memorandum to the council, seeking authorization to pursue an initial $10 million through the county’s primary insurance coverage.
Lexington Insurance Co. and Swiss Re Corporate Solutions Capacity Insurance Corp. would each provide $5 million under the proposed initial claim.
The county may pursue additional payments through its excess insurance coverage as the claim progresses. The final amount will depend on the claims adjustment process and the terms of the applicable policies.
During the council discussion, council member Felicia Cowden asked Managing director Reiko Matsuyama whether the $25 million represented the maximum amount available through the county’s insurance coverage and how much of the rebuilding costs it would cover.
Matsumaya said “the cost to rebuild the building would exceed the available insurance proceeds.”
She also confirmed that coverage would include the building’s contents, including computers.
The total cost of rebuilding and the portion covered by insurance remain undetermined, Matsuyama said.
In early October, the Mayor’s Office, which is leading and managing the rebuilding project, said it is in the early stages following the clearing of fire debris and removing of damaged building materials.
Officials said a preliminary structural and engineering assessment is complete, but a final engineering assessment cannot begin until the cleanup work is finished.
