Insurance rep tells Wall School District board EMC won’t insure bus barn; board approves alternate coverage

Jeremy Lee, an insurance representative with Hub Insurance, told the Wall School District 51-5 board the district’s primary carrier, EMC, would not insure the bus barn’s building shell after its recent inspection failed to verify electrical, HVAC and roof upgrades. "They couldn't verify anything on the building as far as roof updates, electrical updates, HVAC updates," Lee said, explaining that EMC’s decision related to underwriting criteria rather than condition-based condemnation.

Lee said the district’s vehicles remain insured separately under an auto policy and that personal liability coverage stayed intact; what EMC excluded was the building shell and the barn’s stored personal property. He told the board Hub had identified an excess-lines insurer (named during the meeting as White Point) that would provide building coverage if the board chose to pursue it. Lee said the carrier quoted a building replacement value of $311,000 and personal-property contents at about $62,000, and that the premium for the alternate policy would be $3,007.97 with a deductible structure that includes a $5,000 amount and, for some exposures, a 3% deductible tied to building value.

Board members asked whether targeted repairs and documented inspections (electrical, plumbing, heating) could allow EMC to reinstate coverage; Lee said underwriters often will reconsider after clear evidence of upgrades and that the district could also schedule additional inspections to document improvements. He recommended submitting year, model and serial numbers for large equipment so the insurer could place items on appropriate schedules (farm/marine lines or equipment floater) if needed.

After discussion about tradeoffs between paying for upgrades versus buying excess-lines coverage, a board motion to approve the proposed insurance arrangement was made and approved by voice vote. The board directed administration to provide the documentation Lee requested and to include the recommended proposal in the July packet for formal ratification under the usual renewal process. The board did not record a roll-call tally in the meeting transcript; the approval is recorded as a voice vote on the record.

Next steps: administration will supply serial numbers and updated values for high-ticket equipment, continue negotiations with EMC and the alternate carrier, and place the insurance documents in the July board packet for formal resolution and billing procedures.