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District insurance renewal comes in below budgeted spike; board considers buying down $75,000 wind/hail deductible
Summary
The district's insurance renewal rose about 9.93%, well below a budgeted 25% increase; insurers raised wind/hail deductibles to $75,000, and the board was presented an option to buy down deductibles to $25,000 for roughly $18,500 total across buildings.
The Grey County Board of Education reviewed its insurance renewal and options to reduce large wind/hail deductibles.
Staff told the board the district had budgeted for as much as a 25% premium increase given recent severe weather, but the renewal came in far lower — about a 9.93% increase. However, the insurer raised the minimum wind-and-hail deductible to $75,000 per claim. To lower exposure the broker offered a buy-down to $25,000 per building; most buildings would cost roughly $3,000 each to buy down, with the central office at about $2,000, for an estimated total cost of roughly $18,500 to buy down all buildings.
Superintendent Crawford summarized options, noting the district could choose to buy down all, some, or only cover the high school and middle-school athletic facilities (which would cost about $7,000) to cover outside athletic facilities. Crawford said the district's budgeting still leaves room for this option and recommended the board decide whether to accept the renewal and purchase the buy-down.
A motion to accept the renewal and proceed was made and seconded; the board discussed contract years and whether to lock in longer terms. Staff noted they can sign renewals and still have cancellation provisions (30- or 60-day notice clauses depending on contract language). The board moved the item forward for action.
Staff will finalize which buildings to include in a buy-down and return with the specific cost per building if the board requests a detailed allocation before final signature.
