PRESS RELEASES

18 March 2009 - Restructuring of Reconstitution Grants

Forest Service has just announced a restructuring of Reconstitution Grants, such grants will not be available in respect of Reconstitution rising from damage by fire or wind after 1 June.  Forest Service have confirmed that this does not change the obligation to maintain the plantations in good order and that in the event of damage by fire which is not reconstituted that the owner will have an obligation to repay grants and premium as well as being at the loss of further premium.

The Galway based insurance intermediary, WoodlandCover, has confirmed that it is in a position to offer Reconstitution cover to existing and new clients with immediate effect and believes that the package offers excellent value.

For instance a forest owner of 10 hectares of diverse conifer woodland aged five years could have to repay up to €64,000 in grants and premium in the event of a fire which was not replanted and would be at the loss of a further €49,000 in further premium.

Insurance to avoid that (by replanting) would cost in or around €50 per annum.

WoodlandCover urges forest managers and owners to review their insurance and to contact WoodlandCover at 091 562016 or at insurance@forsure.ie or by letter to 36b Merchants Dock, Merchants Road, Galway to obtain further details.

WoodlandCover offers a package of cover for loss of growth insurance, public liability as well as Reconstitution cover.

John Phelan, Managing Director of WoodlandCover, pointed out that insurance is no substitute for good management and fire prevention but that insurance can provide the peace of mind in relation to the significant financial exposure that could follow a fire.  He has some concerns that fire insurance costs could increase somewhat and advise owners, forest managers and neighbouring landowners to be particularly vigilant during this dry spell.  Although the grant restructuring is not due to take place until the 1st June he believes that it would be advisable for owners to take out cover immediately given the current funding limitations.  If owners prefer to add from the 1st June that can be arranged.

For further details contact Niamh Barrett or John Phelan at WoodlandCover, Merchants Dock, Merchants Road, Galway 091 562016 or John Phelan on 087 2474530.

niamh.barrett@forsure.ie

To download a pdf of this press release, click here.