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Board approves FY27 insurance package with higher valuations and $79,000 added cost
Summary
The board approved a FY27 insurance renewal that raises building valuations and reduces deductibles; the district reported an additional $79,000 in premium cost for broader coverage and lower deductibles (wind and hail deductibles reduced substantially).
The McCreary County Board of Education approved the district’s FY27 insurance package, which increases building and contents valuations, lowers certain deductibles and raises the annual premium by roughly $79,000 for broader coverage.
Staff told the board the buildings and contents coverage had been increased (staff stated an increase of $62.7 million in valuation) to align with Kentucky Department of Education recommended values per square foot so the district would be better covered in case of a loss. Under the new proposal, the wind deductible would fall from 1% of building value to a $10,000 per-loss deductible and the hail deductible would be reduced from 1% of building value to $100,000. Auto deductibles would also drop and workers' compensation would remain with the same carrier.
District staff said the total package cost would rise by approximately $79,000 but that coverage and deductibles would be significantly improved. They gave the example that under prior valuation, a large-loss deductible on a building valued at roughly $64 million could have been in the hundreds of thousands of dollars; the new structure markedly lowers that exposure.
A motion to accept the insurance proposal was made and recorded in the meeting; the board approved the package and staff were authorized to implement the renewal.
