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Hoover Public Schools warns of nearly $6.9 million property-liability premium; board told to consider renewing with SIAW cooperative
Summary
Superintendent Brett Richmond told the Committee of the Whole the district’s property and liability insurance premium will total $6,896,261 with an additional separate amount described as “250” for excess earthquake coverage; the premium is a reported 22% increase year over year and staff plan to seek board authorization at the September meeting.
Superintendent Brett Richmond told the Hoover Public Schools Committee of the Whole on Aug. 26, 2025, that the district must plan to renew its property and liability coverage with the SIAW cooperative and that the proposed premium is $6,896,261, plus an additional ‘‘250’’ for a separate excess earthquake policy. Richmond said the premium represents a roughly 22% increase from the prior year and that the district has limited discretion over the market.
Why it matters: the premium increase materially affects the district’s non-salary budget and consumes a substantial portion of one-time state inflation funding (MSOC) the district recently received, tightening resources available for utilities, materials and other non-salary costs.
Richmond framed several drivers for the increase: higher national claim frequency and catastrophic losses linked to extreme weather, higher construction and replacement costs that increase insurer exposure, and an elevated litigious environment that raises potential liability. He said the district uses brokers and cooperatives to pool buying power and that the district can ‘‘theoretically assess the market’’ but should not expect large savings immediately.
A board member asked whether the district could shop carriers in the same way a homeowner shops private insurance. Richmond said there are ‘‘primarily two statewide cooperatives’’ of comparable size, and that his recommendation is to pursue renewal while preparing to assess the market and, if appropriate, conduct an RFP next year. He told the committee the district would present authorization for membership and premium payment to the full board at the September meeting.
Richmond also raised legislative advocacy as an avenue to seek relief. He told directors the district had used nearly all of a roughly $1.5 million MSOC inflation allocation to cover the insurance increase, leaving about $200,000 unspent for other inflationary costs, and urged more concrete examples to state legislators.
No formal vote occurred. The discussion was framed as a recommendation and planning step ahead of a decision scheduled for the September board meeting.
