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Officials briefed on regional property-insurance pool offering broader coverage, lower premiums for Biloxi
Summary
An insurance representative told the council that a regional pool covering 13 entities would expand coverage and reduce Biloxi's premiums compared with last year; the plan includes a shared loss fund and inspections/appraisals.
An insurance representative briefed the Biloxi City Council on a proposed regional property-insurance pooling arrangement that the presenter said includes 13 entities and offers broader coverage at lower cost.
Frank Mordo summarized the plan and told the council that the new policy package “has additional coverages that y'all haven't had really since Katrina.” Mordo said the pool secures a $375,000,000 loss limit for “all other perils, including straight line wind events” and that Biloxi’s participation would yield an estimated savings of about $150,000 compared with the prior year. He said the group would also maintain the same loss limits municipalities previously held for certain perils.
Mordo described a shared loss fund that he said would total $500,000 and be split among members; he said each entity would pay a proportional share of that fund. He also said the pool’s premium includes annual inspection and appraisal work on a staggered three-year schedule and that actuarial and legal costs are included in the premium rather than being billed separately.
Council members sought clarifications about allocations and responsibilities. Councilman Lawrence asked how the $500,000 loss fund would be apportioned; Mordo said Biloxi’s share would be roughly proportional to its insured value and estimated Biloxi might represent about 18% of the total insured value. Council members asked whether certain buildings — notably library properties — were city-owned or county-owned and who would pay premiums for contents versus buildings; Mordo and staff said building ownership determines who pays the building premium while the library system would normally cover contents.
Mordo said Memorial Hospital’s participation (he described it as a large insured value) materially affected the pool’s overall value and pricing. He said the group planned to finalize pricing after additional modeling and attorney review and asked council members to allow him to continue working with the administration and the city attorney to complete the paperwork.
No formal vote was recorded on the pool during the council meeting.
