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Hastings Utility sees modest insurance renewal rise; key changes to wind/hail deductibles
Summary
City insurance advisors told the Hastings Utility Board that the utility’s 2025–26 insurance renewal will be roughly 5% higher overall, driven by excess liability costs and a change to wind/hail deductibles that removes last year’s $1,000,000 cap at major sites.
Insurance advisors for Hastings Utility told the board on Sept. 11 that the utility’s property and liability renewal for the Oct. 1, 2025–Sept. 30, 2026 policy year will be slightly higher than last year. The presenter said the combined renewal is “right about a 5% increase over last year’s total.”
The utility’s property coverage is written by FM Global with a blanket policy limit of $450 million; presenters said the total insured property value across utility sites is just under $500 million and noted FM Global’s valuation approach uses replacement-cost estimates. The presenter said the policy treats power-generation assets differently from other locations: a $2,000,000 deductible applies to major power-generating assets, while a $250,000 deductible applies to other sites.
Advisors highlighted a material change to wind/hail coverage. Instead of a fixed per-location cap that capped wind/hail deductibles at $1,000,000 in previous years, the wind/hail deductible is now a percentage (1%) of the property value at the affected location. Using FM Global’s values, that translates to roughly $1.3 million at North Denver and about $2.8 million at the Wayland Energy Center, the presenter said, and noted FM Global removed last year’s $1,000,000 cap.
The board asked about valuation methodology. When asked whether the figures represent appraised or depreciated values, the presenter said they are replacement-cost valuations that FM Global reviews and updates periodically. Staff added they have worked with FM Global to keep values current.
On liability, advisors described an Aegis excess-liability program that provides $35 million per occurrence with a $70 million aggregate limit, sitting above a $500,000 self-insured retention the utility would cover. Presenters said Aegis’s program addresses exposures such as pollution, wildfire and failure-to-supply for utility operations.
Presenters also noted FM Global’s unusually broad sublimits for certain perils (for example, stated sublimits for earth movement and flood in the FM Global form) and said FNIC does not collect commissions for the placement; the firm attaches a flat fee. Staff and advisors committed to distributing the full slide packet to board members after the meeting for further review.
The board received the briefing to inform budgeting; no formal action on the renewal was taken at the Sept. 11 meeting.
