Washington council delays insurance buy-down decision after split vote; special meeting set

City staff presented a renewal proposal for the city’s property and casualty insurance and recommended accepting a one-year renewal with an increased wind/hail deductible, but councilmembers split sharply on whether to approve the renewal without finalized "deductible buy‑down" pricing.

City staffer Sherry brought the proposal to the council and said the recommended renewal from Daniel & Henry reflected higher market rates and increased exposures, and that the property deductible for wind and hail would change from $10,000 to a minimum of $25,000 (or 2 percent on some buildings). Amy of Daniel & Henry described the deductible change: “The 2% is calculated on the value of the building that it that was damaged. And then the 25,000 that Sherry mentioned is a minimum on that.”

The city also presented optional deductible buy‑down policies from third‑party carriers that would reduce the city’s out‑of‑pocket deductible in the event of a loss. Staff said three preliminary indications for buy‑down coverage priced roughly between $73,000 and $162,000, depending on the deductible level selected. Amy said the indications were not final but expected to be close to the final quotes.

Council members debated whether to approve the renewal before choosing a buy‑down option. Several members expressed reluctance to commit large sums for a buy‑down without firm figures. After discussion, a motion on the floor to proceed with the renewal failed. Council then voted to schedule a special council meeting for 6:00 p.m. Monday, June 23, to review firm buy‑down quotes and decide whether to purchase additional coverage.

Why it matters: the change in deductible rules (2% wind/hail with a $25,000 minimum) could expose the city to significantly larger out‑of‑pocket losses for storm damage on some smaller buildings or public facilities. Whether the city purchases a buy‑down policy would affect near‑term budget decisions and the city’s financial exposure to future severe‑weather claims.

Key details and next steps

- Staff recommended renewing the current policy for the July 1, 2025–June 30, 2026 term and exploring a deductible buy‑down policy to reduce the city’s wind/hail exposure. - Buy‑down indications received the same day ranged approximately $73,000–$162,000; staff promised written, finalized quotes within a few business days. - Council did not approve the renewal motion as it stood and voted to meet June 23 to review final buy‑down numbers before taking final action.

Council and staff comments

City staffer Sherry said the buy‑down quotes would be provided in writing: “I will work on putting all of this in writing for you because I know it's hard to just listen and get a good picture of it, but we will document the options.” Amy (Daniel & Henry) cautioned that buy‑down premiums are substantial and urged the council to weigh the cost of premium against the risk of a large deductible payment.

Councilmember discussion focused on the frequency and magnitude of recent claims, the size of the city’s higher‑value buildings (the Public Safety Building was cited as an example), and whether paying $73,000–$162,000 in premium is worthwhile relative to the chance of multiple buildings suffering qualifying loss in a single storm.

Votes and formal actions

- Motion to renew the city's property and casualty policy for 07/01/2025–06/30/2026 (as presented) — outcome: failed (several councilmembers voted no during roll call). The motion did not pass; roll‑call discussion is in the meeting record. - Motion to schedule a special meeting for 6:00 p.m. Monday, June 23, 2025, to review finalized buy‑down quotes — outcome: approved (council voted in favor).

Ending

City staff committed to deliver final, written buy‑down quotes ahead of the special meeting. The council will reconvene June 23 to make a final decision.