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Finance committee recommends property‑insurance renewal after appraisal finds buildings underinsured
Summary
An appraisal completed in June 2025 showed the city's property replacement values were understated; correcting the valuations is responsible for a 20.6% premium increase. The committee recommended renewing coverage; staff said the additional cost was built into the budget.
Finance staff told the committee that market appraisals completed in June 2025 identified significant underinsurance across city‑owned buildings and property. The corrected replacement values substantially increased the insured total, which staff said is the primary cause of a 20.6% increase in the city’s property insurance premium for 2026 despite the insurer’s marginal rate decrease per $100 of value.
Staff explained the League Insurance (municipal insurer) rate per $100 of value actually declined slightly year over year, but total premiums rose because the replacement values were increased. Committee members asked about taxpayer impact; staff said the increase was worked into the budget and estimated the additional taxpayer impact as modest.
After discussion, the committee recommended renewing the city’s property insurance effective Jan. 1, 2026, to reflect the corrected replacement values and to avoid coverage gaps.
