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Commissioners debate buying down courthouse catastrophe deductible; decision tabled pending state confirmation
Summary
County finance staff proposed purchasing insurance to reduce a 1% catastrophic deductible on the courthouse and ambulance building to a $25,000 deductible for an annual premium; commissioners discussed whether the Administrative Office would reimburse 78% and tabled action pending confirmation.
County finance staff presented an insurance "buy-down" option intended to reduce the county’s catastrophic deductible for the courthouse and the ambulance building. Under the current replacement-value approach described in the meeting, the courthouse’s 1% deductible on a $21,000,000 value would result in a substantially larger out-of-pocket exposure.
Staff said buying down the deductible to a $25,000 per-event level would require an added premium (finance staff referenced roughly an $18,000 annual premium in the discussion) but could significantly reduce the county’s immediate exposure in a major wind or tornado event. Commissioners questioned whether the Administrative Office (AOC) or similar state program would reimburse 78% of a covered loss, which would alter the county’s cost-benefit calculus.
Several commissioners asked staff to contact AOC to confirm the expected 78% reimbursement and to request additional time before committing funds. The court voted to table final action on the buy-down until staff can confirm state reimbursement rules and return with clearer numbers.
Commissioners noted the trade-off between self-insuring for rare catastrophic losses and paying a recurring premium to reduce the county’s immediate deductible burden.
