WARM brief: county’s insured value, loss history and deductibles drive property premium; training offered to reduce claims

Joe Constantino, director of the Wyoming Association of Risk Management (WARM), presented an overview of the county’s property-insurance program, explained how premiums are calculated and urged loss-control measures.

Constantino said WARM is a member-owned pool formed to provide property insurance to local governments. He described the county’s exposure as part of a statewide pool whose total insured value (TIV) runs into the billions; contributions are apportioned by each member’s TIV and loss history.

Key technical details Constantino presented: WARM’s self-insured retention (SIR) is generally $250,000 per loss for most perils and $1 million for wind and hail; the pool purchases reinsurance above the pool layer and maintains an upper insurance program. For large individual losses the program applies a deductible structure that scales with loss size (Constantino described the chart in the policy that shows a deductible of roughly 10% of a loss up to a $50,000 maximum on the schedule). Constantino said most vehicles and buildings are insured on a replacement-cost basis; older vehicles and items beyond a certain age may be settled on an actual-cash-value basis per policy language.

Constantino shared recent loss metrics for Fremont County: the county comprised about 2% of pool value and contributions and recorded a 17% loss ratio in the five-year window presented, which does not include a June 2020 motor-grader claim of approximately $277,000 that will soon fall outside WARM’s five-year calculation. If that $277,000 loss were included in the current calculation, Constantino said the county’s loss ratio for the period would rise to about 53%, which could trigger a surcharge mechanism. He explained WARM’s surcharge bands: 0–30% no surcharge; 30–50% a 5% surcharge; 50–75% a 10% surcharge, applied to a member’s premium based on loss history.

Constantino emphasized two levers members can control to reduce future premiums: (1) reduce total insured value by ensuring schedules list only assets the county wants insured or by adjusting values where appropriate; and (2) reduce claims through training and risk controls. WARM offers a free online training platform (“Burn”/training portal) with hundreds of courses for county employees (driving, harassment prevention, safety topics) and provides risk-control assistance and claims analysis.

County staff and commissioners asked about inventory accuracy and response times. Julie said the county maintains a vehicle inventory that is regularly updated and acknowledged the county’s building inventory may need review; Constantino offered to send the county’s inventory and valuation worksheet and suggested having a buildings expert verify property schedules to ensure correct replacement values and appropriate coverage levels.

Constantino offered to be a point of contact for any claims-response timing concerns and said WARM staff will help analyze specific loss-response delays if given the claim details.