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Nevada CSD joins statewide storm protection fund to limit catastrophic deductible risk
Summary
The Nevada Community School District voted to join a newly created Storm Protection Fund (SPF) that pools contributions from Iowa school districts to buy down catastrophic wind/hail deductibles; initial assessed contribution for Nevada was presented as $42,003.83 for the first year.
The Nevada Community School District Board on June 16 voted to participate in the new statewide Storm Protection Fund (SPF), a consortium designed to spread catastrophic wind and hail deductible risk across participating Iowa school districts.
Melissa Johnson of Midwest Insurance explained the SPF concept to the board: instead of each district purchasing an expensive deductible buy‑down individually, participating districts contribute to a pooled fund that can be used to cover large 1% wind/hail deductibles. Johnson said the district’s share for the first year would be $42,003.83, assessed on total insured value, and that the fund’s initial target contribution across districts is about $10,000,000 based on actuarial modeling. Participants were told the program assumes broad participation (the modeling example used 90% of Iowa’s roughly 320 districts) so that contributions per district should decline in subsequent years if losses are limited and the fund is invested prudently.
Board members discussed mechanics and risks. Johnson said contributions are assessed on each district’s total insured value (the high school, middle school, elementary, the former church school and the district office were listed as Nevada’s insured locations) and that assessments are due annually on July 1; districts must notify before July 1 if they plan to opt out for the following year. Johnson said the fund also purchases reinsurance to protect against catastrophic years.
Dr. Gray expressed support for the concept as a realistic alternative to individually buying down deductibles at a steep price. Board members asked whether larger districts had already committed; Johnson said West Des Moines, Boone, Waverly and Fort Dodge were early participants and that participation reporting was still rolling in. The board asked administrative staff to confirm any outstanding procedural details; Johnson said she would obtain answers to procedural questions such as minimum participant thresholds.
The board moved to adopt a resolution to participate in the Storm Protection Fund. The vote was taken by roll call; the board responded in the affirmative (board members Missy, Joe, Leanne, Tom and Marty recorded “hi” during roll call). The resolution takes effect July 1 and the initial contribution will be drawn from the district’s management fund.
