Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Insurance topic
No spam. Unsubscribe anytime.
Parish reviews insurance renewal options after VFIS rate increases; broker recommends split program to save premiums
Summary
An insurance broker told the Cameron Parish Police Jury that volunteer fire insurer VFIS has raised rates and windstorm deductibles after Hurricane Laura payouts; an alternate plan using private carriers plus NFIP flood insurance could reduce annual premiums by roughly $300,000 but would change coverage scope and requires timing coordination to avoid a short flood‑insurance gap.
The Cameron Parish Police Jury reviewed the parish insurance renewal and options for insuring fire department property after hearing from broker Butler Bourgeois on Sept. 2.
Bourgeois said the volunteer fire insurer VFIS paid roughly $8 million for Hurricane Laura building claims and has proposed raising property premiums and increasing windstorm deductibles (he cited proposed property premium increases and a rise in the windstorm deductible from 5% to 10%). He presented an alternate approach that would split coverages across private carriers for property and equipment, purchase flood coverage through the National Flood Insurance Program (NFIP), and provide separate equipment‑breakdown policies. That option, Bourgeois said, would keep parish costs close to this year’s levels and could save about $300,000 a year in premium compared with staying fully on the VFIS program.
Timing and limits: Staff noted the NFIP has a 30‑day waiting period to bind flood coverage, creating a potential 14–18 day gap if the parish moved programs at the policy renewal date (parish renewal is Sept. 15; NFIP coverage would take effect roughly Sept. 29 in the broker’s scenario). Bourgeois recommended negotiating VFIS extensions and confirmed VFIS had offered to extend coverage; he said he expected VFIS to cancel pro rata (charging only for days used) rather than short‑rate penalties.
Why it matters: Jurors voiced concern about coverage limits on buildings older than 15 years and the availability of NFIP for some fire stations located within coastal barriers; broker noted NFIP may not insure some coastal‑barrier locations and that those two stations would require alternative sources for flood coverage. Jurors asked staff to continue negotiating terms and return with a recommendation.
No final insurance vote was recorded at the meeting; staff said they will seek clarification from VFIS on pro‑rata calculations and report back to the jury before final action.
