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Linn County outlines $364,000 Penneken Ridge fire loss, ongoing FEMA and insurance work
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Summary
Risk Management Director Steve Esselstyn said a fire at Penneken Ridge in April caused more than $364,000 in total loss; the county has received $119,000 to date from the insurer, expects roughly $145,000 more, and is pursuing about $7 million remaining in FEMA derecho-related reimbursement.
Steve Esselstyn, Linn County’s risk management director, told supervisors the county’s claim for a fire at Penneken Ridge (April 24) totals more than $364,000, including the replacement of the building.
"The total loss amount on this claim is over $364,000 and that includes the replacement building," Esselstyn said. He explained the county’s property policy with Chubb covers county buildings subject to a $100,000 deductible; the county covers the deductible from its self-insurance fund and will be reimbursed as insurance proceeds arrive.
Esselstyn said insurers have paid about $119,000 so far and an estimated $145,000 remains outstanding while the insurer reviews bid documents and engineering costs. He also listed items not covered by property insurance — two buses and two trailers — and said conservation elected not to replace some vehicles because the program using them was infrequent.
On the probable cause of the fire, Esselstyn said the insurer’s investigation concluded the Chevy Express bus likely originated the fire, possibly from an animal nest in the battery compartment that allowed wires to be chewed and spark. Esselstyn also explained the rationale for self-insuring lower-value items rather than buying pricier policies for all equipment.
Separately, Esselstyn said the county is still working FEMA on derecho recovery: of a $25,000,000 claim, the county has received about $18,000,000 and estimates roughly $7,000,000 remains to be recovered.
The Board took the update as informational; no formal Board action was recorded.
