Wright County reviews underinsured equipment, buildings ahead of ICAP renewal; board asks for cost scenarios

Wright County officials reviewed their property and casualty insurance ahead of the county’s ICAP renewal and asked staff to return with firm cost figures and deductible options.

Jay (ICAP representative) told the Board of Supervisors on April 21 that recent equipment valuations submitted by department heads revealed about $3 million in underinsured county equipment. The county currently insures many older road graders and other heavy equipment at values well below replacement cost; Jay said one current replacement estimate for a road grader is about $475,000 while several 2011–2012 graders on the schedule are insured for roughly $245,000.

The county’s options, Jay said, include switching scheduled items to replacement-cost values (with a higher premium) or changing to actual cash value (which would lower premiums but increase county exposure to replacement costs). Jay gave preliminary, not-final estimates for the renewal if the county increases limits: approximately $6,000 to cover the $3 million equipment shortfall at replacement value, about $10,000 to raise the jail’s building limit (from $5.3 million to $10 million as discussed at the meeting), and roughly $24,000 to raise the courthouse limit (from $15 million to $30 million). Jay estimated the aggregate increase would be in the neighborhood of $40,000 on top of the county’s current annual ICAP cost of $319,748.

Jay also discussed deductible strategies. Increasing the courthouse and jail deductibles to $5,000 or $10,000 could produce rate relief that offsets some of the added coverage cost. He recommended the board consider both the effect on premiums and the county’s tolerance for higher out-of-pocket losses.

County staff recommended a practical change to when the county pays the renewal premium. Because ICAP’s billing often arrives after the fiscal year closes, staff proposed setting the payment to July 1 so coverage is placed in the new fiscal year and departments have time for budget amendments. Jay and county staff said ICAP offers a commitment form to provide coverage from July 1 while billing is finalized, which would let the county avoid last-minute budget stress.

Supervisors asked for a follow-up meeting when ICAP provides actual renewal figures and deductible factors. Jay said he would return to present the specific cost impact of a $5,000 or $10,000 deductible and the final renewal numbers, likely in late May or early June once ICAP publishes its July 2025 renewal rates.

No formal action was taken at the meeting; the board directed staff to continue department-level valuation reviews, gather firm ICAP estimates for replacement-cost and actual-cash-value scenarios, and return with a recommendation.