Aransas County approves property and windstorm insurance renewal, opts for layered policy and deductible buy-down

Aransas County Commissioners on a special-call meeting approved renewal of the county's property and windstorm insurance for the period beginning March 3, 2025, through March 2026 and authorized county staff to execute the basic premium and related policy endorsements.

The vote follows a presentation from Blake McDavid of GSM Insurers, who described a stabilized but fragile insurance marketplace and outlined two primary options for the county's coverage. The court approved the private-carrier layered option referred to in the meeting as Option 1 and directed staff to pursue a buy-down of the named-storm deductible to 1 percent.

The approval matters because Aransas County carries roughly $35 million to $36 million in insured value on its current schedule and is preparing to add additional facilities, including a community center and a new courthouse, which will increase total insured value. That concentration of value near the coast requires a layered coverage approach in which multiple carriers share portions of the risk.

McDavid told the court the marketplace has "trended a little better" this year with more carriers willing to quote coastal properties but cautioned that the change has not produced lower premiums across the board. He said Option 1 is "the complete option" and will be easier to expand as the county adds the courthouse and other buildings.

Under the coverage discussed in the meeting, the county's existing windstorm deductible is a 5 percent, per-location deductible with a $500,000 minimum per occurrence; that option carried a premium figure presented as $725,002.82. Commissioners were presented alternatives to reduce that deductible: a move to a 3 percent deductible (presented at roughly $101,008) or to a 1 percent deductible, which was shown as an additional premium of about $142,000. McDavid said the 1 percent buy-down would keep the program within the county's existing budget line for property insurance, which the presenter said had been budgeted at a little over $800,000.

County staff also noted that the county lacks certain certifications that some windstorm underwriters require to quote every building. That gap meant that the offer from the windpool-like option (referred to in the meeting as the TWIA/TWEA-style option) was incomplete for all structures; the presenter said the available quote covered 12 buildings only and would require additional work by county staff and specialized documentation to include other facilities.

Commissioners asked whether leased properties such as the district courthouse and other leased office spaces must be insured by the county; staff clarified the county insures contents for lease properties but does not insure the leased structure itself. The county's heavy equipment and mobile-equipment schedules were confirmed as part of the renewal package and remain subject to additions and deletions during the policy year.

McDavid highlighted that some recently acquired or reconstructed buildings (metal framing, brick facade, metal roof) may receive more favorable rates due to construction type, but adding the new courthouse and community center will substantially raise total insured value, which could increase premiums.

Commissioners discussed cash-flow and repair-reserve implications and approved moving forward with the Option 1 layered program and pursuing the 1 percent named‑storm deductible buy-down; they also approved continuing the county's mobile-equipment schedule as part of the renewal. The motion passed on the court's voice vote during the special meeting.

The county will need to complete additional documentation and certificates of occupancy for some buildings before windstorm underwriters will provide full quotes; staff said they will return to the court for any further amendments or to present completed quotes for additional buildings.