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Council approves property insurance despite nearly 20% premium increase and reduced limits
Summary
The council approved Resolution 1735 to authorize property insurance for 08/01/2024–06/30/2025. Staff reported a roughly 19.8% overall premium increase and notable increases in deductibles and reductions in some limits; council discussed self‑insurance and vehicle coverage options.
The Creve Coeur City Council voted unanimously to approve Resolution 1735, authorizing the city's property insurance coverage for the period beginning Aug. 1, 2024.
Finance director Laurie Obermiller told council the insurer proposed a 17.6% rate increase while the city’s insured values rose 2.2%, producing an overall increase of about 19.8%. Obermiller flagged several policy changes that reduce coverage or increase the city's exposure: the auto collision deductible was raised from $2,500 to $15,000; the auto damage limit was reduced from $2,500,000 to $1,000,000; and the wind and hail deductible increased from $50,000 to $250,000. She said the city had been operating month‑to‑month on property coverage while staff awaited timely policy notices.
Council members asked whether the city could segment coverages or consider a municipal insurance pool for next year. Obermiller said staff will explore options, including the St. Louis Area Insurance Trust and possible self‑insurance approaches. One councilor suggested reviewing the value of collision coverage on older vehicles and possibly limiting full collision coverage to newer patrol vehicles.
Council approved the resolution on a unanimous vote. Staff indicated future work on insurance strategy will continue as part of the annual budgeting and risk‑management process.
