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Vanderburgh County approves 2025 property and casualty insurance renewal with $50M quake limit
Summary
The commissioners approved the county's 2025 property and casualty insurance renewal with Princeton recommended as carrier, a reported $277,231,342 in insured property, a $50 million earthquake coverage limit and an overall premium increase of about 10%.
The Vanderburgh County Board of Commissioners on Nov. 19 approved the county's 2025 property and casualty insurance renewal, keeping Princeton as the recommended carrier and adopting program terms that include a $50,000,000 limit for earthquake coverage and an approximate 10% premium increase.
Mister Dillo, who presented the renewal, said: "The total property limit of insured building and contents at Vanderburgh County is $277,231,342." He told the board Princeton had been used previously and remained the best market option for municipalities.
Dillo said insurers' modeling of seismic exposure in the New Madrid Fault area supports a $50 million earthquake limit and that higher limits were available but prohibitively expensive: "A study was done by the insurer ... that the loss would not exceed $50,000,000." He outlined the county's self-insured retentions, noting most claim types carry a $100,000 deductible while workers' compensation and law-enforcement liability retentions are $250,000. He also described a restored loss-fund cap of $1,625,000 that would stop additional county retention payments if that cap were reached.
On drivers of the premium increase, Dillo told the board roughly 6% of the rise reflected increased exposure (payroll, fleet size, etc.) and just under 4% reflected broader inflationary factors and litigation trends, totaling about a 10% increase this year compared with a 20% rise the prior year: "So all overall, the increase in the insurance premiums this year is 10%." He said the current premium level was below the budgeted amount of $1,841,432.
Commissioners asked whether higher law-enforcement retention levels reflected local claims; a commissioner said: "That's more what's happening nationwide." Dillo confirmed the change is industry-wide and not driven by the county's claims history.
A motion to approve the insurance renewal passed on voice/roll-call; in the recorded roll call Commissioner Gable and President Elpers cast "Yes" votes.
The board did not adopt changes to coverage limits at the meeting; staff said they will continue property inspections and provide commissioners with updated statements of values as the county completes reviews of its facilities.
Next steps: staff will finalize documentation with the carrier and incorporate the renewal into the county's budget and risk management files.
