Cleburne County Commission agrees to short-term insurance binding after steep rate spike

Cleburne County officials met in an emergency session to respond to an unexpected, sharp rise in the county’s property, automobile and equipment insurance costs and to authorize a temporary payment plan to maintain coverage.

Speaker 3, who presented policy options, told commissioners the county had been notified of “a significant increase somewhere on the order of a 125% increase in property insurance,” and that the prior underwriter named in the transcript had ceased writing municipal policies. The county’s broker, Parnell Insurance, received limited market responses and initially proposed roughly $155,000 in annual premiums.

To avoid a lapse in coverage that expires at midnight, Speaker 3 recommended binding a short-term plan: pay 25% of the auto premium to secure three months of coverage, place buildings and equipment on month‑to‑month prorated plans (refundable if canceled), and pay equipment premiums in full if the county wishes to capture a roughly $1,500, or 10%, discount. Speaker 3 said the equipment inventory totaled about $15,300.

The commission discussed deductible levels. Speaker 3 said the broker could not obtain a $1,000 deductible and that $2,500 would be the lowest available auto deductible; increasing the deductible to $5,000 would lower premiums but likely shift more out‑of‑pocket cost to the county. “In almost any accident you have… it’s almost always going to be over $5,000,” Speaker 3 said, arguing a $5,000 deductible would be risky for county vehicles.

Speaker 2 confirmed a written resolution had been prepared by Speaker 3 to accept a proposal from Barnhill Insurance for 2025, note the unusually large increase versus prior years, and authorize the described deductible and payment‑plan language to allow time to seek alternative quotes. Commissioners debated how to fill the resolution’s blanks; the discussion centered on a $2,500 auto deductible, $10,000 property deductible, and a payment plan to bridge until other offers could be obtained.

Speaker 3 calculated that, under the recommended structure (100% equipment payment to get the discount, 25% auto payment and one month of property), the immediate funds needed to bind coverage would total $38,649. Commissioners agreed to take the short‑term approach and to re‑examine insurance allocations and options at the next work session; Speaker 1 suggested a provisional ceiling (mentioned in the meeting as $150,000) to avoid a coverage lapse for the year.

The meeting record does not show a formal roll‑call vote with tallies. Commissioners also raised administrative concerns about frequent small claims and requested staff present address details and consolidated numbers at the follow‑up work session. The commission directed staff to pursue additional market quotes while maintaining continuous coverage under the short‑term binding plan.

Next procedural step: staff to gather alternative quotes and present updated figures at the next Cleburne County work session; the temporary payment/binding plan will remain in place month‑to‑month as needed.