Bettendorf School District joins 20-80 insurance cooperative to lower wind and hail deductibles

The Bettendorf Community School District Board meeting on June 18, 2025, focused on a significant proposal regarding property and casualty insurance for the district. The board discussed joining a cooperative group aimed at mitigating costs associated with a new 1% deductible for wind and hail damage.

Brian, a representative from Bridal and Rural, explained the implications of the new deductible structure, which is based on a percentage of the building's replacement cost rather than the loss amount. For instance, if the high school costs $100 million to rebuild, a 1% deductible would equate to a $1 million out-of-pocket expense for the district in the event of a claim. This change has raised concerns about how to manage such a substantial deductible, especially given the unpredictability of storm damage.

To address these concerns, the board considered a 20/80 agreement that would allow multiple school districts to pool their resources. This agreement aims to create a fund that would lower the deductible from 1% to $75,000 per storm, providing financial stability and reducing the risk of large unexpected expenses. Currently, 185 districts have expressed interest in joining this cooperative.

The discussion also highlighted the increasing frequency of severe weather events in Iowa, with a record number of tornadoes reported in 2024. This trend underscores the importance of having a robust insurance strategy in place. Board members expressed their support for the cooperative, recognizing it as a proactive measure to manage potential financial risks associated with storm damage.

In conclusion, the Bettendorf School Board's decision to consider joining the cooperative group reflects a strategic approach to insurance management, aiming to protect the district's financial health while addressing the challenges posed by severe weather. The board will finalize its decision by June 27, 2025, as they continue to evaluate the benefits of this collaborative insurance model.