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District expands equipment insurance to include HVAC; employee health premiums hold steady
Summary
Officials said July 22 that most non-cyber insurance is provided through the IPSIP program, property and workers' comp premiums rose modestly while equipment-breakdown premiums jumped after expanding coverage to HVAC; employee health premiums did not increase this year.
District finance staff briefed the board July 22 on the annual asset-protection report, saying the district’s insurance program remained stable while the district added HVAC coverage to its equipment-breakdown insurance.
CFO Kurt said most of the district’s insurance is placed through an IPSIP program of member districts, which has produced comparatively stable premiums and a flat $1,000 deductible structure for incidents. He said property premiums rose 6.59% overall and workers' compensation increased about 3.1% — levels the presentation described as substantially below figures reported by other Iowa districts.
The presentation noted a 94.73% increase in the equipment-breakdown line, driving a 26% increase in the overall premium for that package. Staff said the equipment-breakdown increase stemmed from the first-year expansion of coverage to include HVAC systems at selected pilot buildings; the district is applying the expansion initially to a mix of older and newer buildings as a pilot and will evaluate premium adjustments with the insurer over time.
On employee health insurance, staff reported no increase in district-paid premiums this year. The district described itself as a self-funded health program and said it had made plan design changes earlier in the year aimed at long-term cost control; last year the district experienced a roughly 13% increase in premiums.
Staff emphasized that all premiums discussed are paid from the management fund and do not draw on the general fund, though they noted the coverage protects the district’s assets and relieves pressure on other budgets.
Ending: Administrators said they will monitor claims and premium adjustments after expanding equipment-breakdown coverage for HVAC, continue a health-insurance review through an employee committee, and provide updates to the board on changes to plan design or premiums.
