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Nueces County reduces catastrophe insurance limit to trim premium increases
Summary
Facing a tighter reinsurance market, the court voted to cut the county's wind/windstorm catastrophe limit from $175 million to $100 million to reduce the expected premium spike and asked staff to run flood quotes for smaller coastal assets.
Nueces County commissioners voted on May 25 to lower the county's catastrophe (wind/windstorm) insurance limit from $175 million to $100 million to blunt a projected sharp premium increase in this year's renewal.
Broker Carlisle told the court that a hardening reinsurance market has driven carriers to split risk and raise prices; keeping the existing $175 million limit would increase the county's premium by roughly 37% (about $503,443 across lines). The broker showed an alternative portfolio that lowers the CAT limit to $100 million, reducing the net premium burden while keeping the county's coverage within common municipal practices (around 30–35% of total value).
Commissioners also directed staff to evaluate flood coverage for smaller coastal park structures and to run quotes based on a $100,000 threshold for flood insurance eligibility so the court could decide which coastal assets to include. The motion to adopt Option 2 passed by voice vote.
County staff said flood premiums had fallen for some buildings after the National Flood Insurance Program updated rating methods, and the court asked for detailed quotes and a review of which coastal park assets to insure going forward.
