Pepper Pike council approves three-year insurance placement after questions on appraisals and limits

The Pepper Pike City Council voted to approve a contract with Wickerts (presented by Rickert Insurance) covering general liability, property, cyber and automobile risks for the 2025–26 policy term.

Peter, a city department head who introduced the item, said Rickert had surveyed carriers to find the most competitive placement for the city’s needs and that the recommended program includes auto, public-officials, cyber and umbrella coverage. A representative for the carrier explained that the program provides a blanket limit of $14,223,000 “at any one location” and that the carrier typically applies a 5% annual escalation to property values to account for inflation and replacements.

Council members pressed the carrier on whether the city was fully insured for current replacement costs and whether an appraisal was necessary. The carrier representative said other public-entity pools have recently demanded appraisals or required double-digit increases in property values but that the selected carrier had accepted a 5% annual increase. The representative estimated a full appraisal for the city’s size would likely cost between $8,000 and $10,000.

Council discussion also covered deductible options: raising the property deductible from $5,000 to $10,000 would save about $1,618 annually, while increasing comprehensive/collision deductibles from $500 to $1,000 would reduce auto premiums by about $1,279 per year. The carrier noted the policy includes a “disappearing” property deductible—once a loss exceeds 10 times the deductible the amount is waived—reducing net cost on larger claims.

After questions and brief debate about appetite for increased deductibles versus appraisal costs, council made a motion to approve the placement. The motion passed on a roll-call vote of councilmembers present.

The insurance packet and spreadsheet provided to council showed an estimated modest increase overall (approximately 6% in the carrier quote) and noted a recent stabilization in cyber premiums. Peter said staff would consider budgeting for at least a partial appraisal in the coming year to verify replacement values.

Next steps: staff will finalize contract documents with the carrier and return any requested exhibits or clarifying schedules to the council before the first renewal period.