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Hancock County School District reviews property insurance renewal; staff recommends lower-cost option
Summary
District staff presented two property-insurance options on March 24 and recommended an option that would lower the premium by about $153,000 while increasing covered value; no final vote was recorded at the meeting.
The Hancock County School District Board on March 24 reviewed two proposals to renew the district's property-insurance program and heard a staff recommendation for the lower-cost option that would reduce the premium and increase replacement-value coverage.
District staff member Mr. Ladner told the board the district currently carries $50 million in wind-and-fire coverage and lists roughly $170,976,000 in assets. He described two renewal options and the differences in deductibles and premiums, and he recommended option 2 because it would reduce the expiring premium by about $153,439.
Why it matters: The board is weighing coverage levels, named-storm and other-wind deductibles, and premiums against the district budget. Staff flagged a March 27 deadline to finalize renewal decisions; no formal board vote on the insurance renewal was recorded during the meeting.
Mr. Ladner laid out the options. Option 1 would raise some building valuations (the district moved several locations to full replacement cost), change a named-storm deductible from 5% to 3%, and reduce the deductible for other wind losses to $100,000 from $250,000; he said the premium for that option was higher than the expiring amount. He described option 2 as “similar to what we have in place now” and said it offered about a 12% savings this year. He reported a specific premium figure for one option as $1,123,317 and said the carriers would be similar to the current program, with a new carrier named Iron Shore taking on part of the risk.
“If we could save a hundred thousand dollars and increase coverage by 25,000,000, we would I would push that, just understanding budget constraints. We're looking to save money this year,” Mr. Ladner said.
Board member Dr. Steeler asked whether Mr. Ladner was recommending option 2. Mr. Ladner responded that he was recommending option 2 and cited the roughly $153,439 reduction from the expiring premium.
Board members asked about timing. Mr. Ladner said the renewal deadline is March 27 and that he had kept district staff including the superintendent informed; the board discussed the possibility of a special meeting or additional time to review the proposal but did not take a formal vote on the renewal at the March 24 meeting.
Less-critical details: Mr. Ladner noted sublimits and policy forms on the quote pages that the district could not materially change to reduce the premium, and he described wind-deductible buy-downs presented in the package. He also said the district increased some building valuations last year to full replacement cost for several facilities.
