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Commission hears warning on Hilltop Apartments insurance costs, directs staff to prepare options and maintenance estimates
Summary
An insurance representative told the commission the Hilltop Apartments could face sharply higher premiums at renewal; commissioners asked staff to continue maintenance, seek options, and return with cost estimates and a plan during budget discussions.
The Harrington City Commission received a briefing on insurance and deferred maintenance for the Hilltop Apartments and directed staff to develop options, cost estimates, and a plan for consideration during the budget process.
Kyle Becker of Smart Insurance told the commission that the city’s carrier, EMC, is scrutinizing large, older municipal properties and that Hilltop — an older, sizable senior housing building owned by the city — could see its annual premium rise from roughly $24,000 today to an estimated $80,000–$100,000 at the next renewal if underwriting concerns are not addressed.
Becker said the insurance market has tightened nationwide and that carriers are increasingly moving higher‑risk property to other markets or increasing premiums. He noted past losses such as freezing and flooding incidents and flagged interior mold in a storage area as an underwriting concern.
Staff and department heads described the current occupancy and renovation status at the Hilltop. Laurie, a department head, told the commission three apartments are in renovation and should be ready by May 1; the facility currently had several vacant units available for turnover. Laurie said smaller apartment repairs (the recorded renovation work) totaled roughly $10,000 in scope, while the city manager warned that truly deferred maintenance across the larger community building — including foundation work, sidewalk and retaining‑wall repairs, and gymnasium upgrades — could total substantially more, potentially $100,000 or higher.
Commissioners discussed options including: seeking alternative insurance markets, shifting uses or tenants, continuing renovations and routine maintenance, pursuing grants (while recognizing grant restrictions), and holding a dedicated work session to review long‑term options. The city manager said staff would bring back detailed maintenance estimates, loss‑control items cited by the insurer, and insurance alternatives for the commission to consider during budget season.
Commissioners emphasized an obligation to current tenants and said maintenance on occupied units should not be deferred while the commission evaluates long‑term choices. No formal vote was taken on policy changes; the commission directed staff to return with a work‑session presentation and budget implications.
